STOCKHOLM (Reuters) – IKEA’s Ingka Investments is in talks to buy commercial property in prime locations in several big European cities after it finalised its first-ever such acquisition last month, its managing director said.
The investment arm of Ingka Group, which owns most IKEA stores, is pushing into the real estate market as part of IKEA’s shift towards big city-centres from out-of-town. So far, such locations are leased.
Scouting for city-centre retail property more or less ready to house IKEA stores across Europe’s main cities, Ingka Investments’ first deal was in Paris’ Rue de Rivoli.
“We have ongoing discussions in big European cities,” Ingka Investments Managing Director Krister Mattsson said in an interview. “It takes time to buy properties, but there is a lot in the pipeline,” he told Reuters.
Inkga Investments is pushing ahead with the new strategy despite the wider retail market uncertainty caused by the pandemic.