Dutch pension asset manager APG has taken a 75% stake in the 1.7 million sq ft retail and leisure centre, signalling the start of construction on the scheme.
TH Real Estate will hold a 25% stake in the centre and continue its role as development and asset manager.
Designed by Allan Murray Architects, the project will comprise of 850,000 sq ft of retail space, including a multi-screen cinema, a 214-room hotel and 150 private apartments. Up to 3,000 jobs will be created by the scheme, for which the retail and leisure element is anticipated to complete in 2020. The overall project is due to be completed in 2021.
Work will now begin on demolishing the existing St James Shopping centre and is expected to take 18 months to complete.
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Myles White, Director of Retail, TH Real Estate, said: "We are delighted to be strengthening our existing relationship with APG, with whom we have built up a strong and successful relationship over the past eight years, to partner on this exceptional development. Both APG, and ourselves, on behalf of our UK Shopping Centre Fund investors, look forward to a long term partnership on this investment which we believe will set a new benchmark for the future of retail and leisure schemes, both in the UK, and beyond."
Robert-Jan Foortse, Head of European Property Investments at APG, said: "The Edinburgh St James project is one the UK's largest and most significant regeneration projects. We are excited to become part of this scheme that will transform and reinforce the heart of Edinburgh city centre with the creation of a new shopping destination."
Economy Secretary Keith Brown added: "The Scottish Government warmly welcomes this major investment in Edinburgh and Scotland, which will have significant positive impact on construction activity, jobs, and the economy.
"I am particularly pleased that the Scottish Government has been able to help unlock the investment by working in partnership with the Scottish Futures Trust and Edinburgh City Council on the Growth Accelerator Model through which we will be contributing significant sums and assisting the Council to manage risk.
"I also welcome the plans for a training academy to help ensure the positive impact of the investment on jobs and training is spread as widely as possible. This is a major signal of investor confidence in Scotland, and provides further demonstration that Scotland is open for business."
(LM/MH)
