St James Quarter set to attract new stores to city

Developers say a number of retailers not currently in the city have expressed an interest in moving to the St James Quarter, which was given the unanimous go-ahead by councillors yesterday.

The existing St James Centre, described as "marring permanently" the historic surroundings, will be demolished in 2011 to make way for a continental-style "galleria" shopping street.

Site owner Henderson Global Investors (HGI) plans to create an 850 million development housing up to 90 shops – a third more than the current shopping centre – as well as a new 150-bed, five-star hotel, complete with rooftop restaurant, and 250 homes.

A new image of how the area would look has also been revealed, showing a curved, multi-level shopping street with glass roof.

HGI fund manager Myles White said: "This has been an exceptional planning approval for an exceptional development.

"For more than two years, we have listened to, and taken on board, literally thousands of viewpoints on our plans – one of the most expansive consultation exercises ever carried out in the city."

Alan Murray Architects and Building Design Partnership will now draw up more detailed plans, with a view to bringing them to the council for approval next year.

Mr White said: "The next stage is working with the city council on the detail of the design. I don't think we will be wanting to replicate old Edinburgh, but we have to be very respectful of the history of the city as well as the future."

The new development is expected to create up to 4000 retail jobs and bring in 20m a year.

Andrew Murphy, managing director of John Lewis Edinburgh, which will remain while the rest of the St James Centre is demolished, said: "The St James Quarter proposal will improve the fortunes of retail in Edinburgh by offering shoppers a quality experience with an outstanding mix of tenants to match."

City leader Jenny Dawe said: "This decision sends out an important message that Edinburgh is an excellent place to invest and to conduct business. It shows we can work positively with investors to create cutting-edge retail and housing projects, which fit well with our historic and beautiful city centre."

A condition of planning consent is that developers should consult with tram firm TIE with regards to the timing of the work.

Developers' proposals to provide up to 30 per cent affordable housing off-site were described by Tory councillor Cameron Rose as "suicidal". But planners said the exact details of the affordable housing contribution would come forward at a later stage.