French malls giant Unibail-Rodamco-Westfield (URW) and pension investor APG have announced URW’s acquisition of a 25% stake in St James Quarter. And it’s more than just a financial deal as URW will be actively involved in the destination that’s controlled by APG, with which it has already partnered in London.
St James Quarter
Majority owner APG retains its 75% stake in the landmark mixed-use destination in Edinburgh that has 110 retail, leisure and dining units across 80,300 sq m. Opened four years ago, it’s in the heart of the city and is among Europe’s 20 highest-footfall retail destinations, “reflecting its strong consumer appeal and strategic urban location within one of the most dynamic cities in the region”.
So what happens now? Within the new joint venture partnership, URW will manage the asset and the centre will be rebranded as a Westfield destination in 2026, “as it leverages URW’s outstanding operational capabilities, as well as innovative services including those provided by in-house retail media agency Westfield Rise”.
This will generate additional income for URW, including asset management and retail media fees.
The French firm’s CEO Jean-Marie Tritant explained the reasoning behind the deal saying: “St James Quarter is a high-quality, fully redeveloped asset that perfectly aligns with our strategy to operate and grow dominant flagship destinations in key urban markets. This accretive transaction also supports with the Group’s ‘A Platform for Growth’ 2025-28 business plan, enabling us to expand our presence through a minority stake alongside APG, a strategic long-term partner. Together, we will elevate the asset’s performance by leveraging our retail operations and media expertise, as well as bringing the globally recognised Westfield brand to the destination.”
And Robert-Jan Foortse, Head of Real Estate Europe at APG, added: “Since its opening in 2021, St James Quarter has consistently strengthened its operational performance, establishing itself among the UK’s leading shopping destinations. The acquisition marks an exciting new chapter for the centre which will benefit from URW’s operational expertise and innovative services, as well as for our collaboration, building on the success of our partnership at Westfield Stratford City. APG is pleased to continue our strong relationship with URW as we pursue shared ambitions and long-term value creation, both for our joint investments and for St James Quarter in particular.”
