IKEA to invest €5.8bn in real estate over three years
The Swedish furniture retailer, IKEA, has announced plans to invest €5.8bn (US$5bn) in real estate operations over a span of three years.
Ingka Centres, the firm’s property business, aims to increase its real estate assets by more than half, the Financial Times reported.
The unit currently owns €9.5bn ($8.26bn) of real estate, which includes €3bn ($2.61bn) of new city centre developments across Europe, Asia, and North America.
Following research in the property market, the firm will focus on “the integration of stores into meeting places” and “opening up the blue wall [ok IKEA stores] so it is part of the centre and not a separate building,” according to Gerald Groener, Ingka Centres’ Global Managing Director.
Ingka Centres is anticipated to own 70 locations across 15 different nations by 2025. The company currently owns 45 locations.
The company’s investment “demonstrates the long-term confidence Ingka Centres has in the right kind of retail-led mixed-use real estate.”
“If you have the right locations, physical locations will always work. Apart from having a strong online presence, it’s a matter of finding the right markets,” Groener continued.
“We want to be closer to our customers living in the major city centres who are less and less likely to have a car – we want to reach out to them and make our home furnishings accessible to them.”
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