Ingka Investments, the owner and operator of 381 IKEA stores, has agreed to acquire a prime real estate in the heart of Paris.
The space will be used by IKEA Retail France and the total investment is 130 million euros, said the company in a statement. The property comprises a total of 7,500 sqm over 7 floors, with retail space on 3 floors. It is located at Rue de Rivoli and will be the second Paris city store, following the opening of IKEA La Madeleine in May 2019.
“We are delighted to have signed this agreement for a property in a top location in the heart of Paris, as it offers great potential for retail space. Ingka Investments is targeting acquisitions of existing real estate in major cities where IKEA Retail operates, as it supports testing new store formats we are creating in cities,” said Krister Mattsson, Managing Director of Ingka Investments, Ingka Group.
“Securing ownership of properties instead of leasing will preserve value on a long-term basis and this transaction also represents a great opportunity to speed up our transformation in order to create the IKEA of tomorrow to be more convenient, affordable and sustainable for the many,” he added.
“Paris has a wonderful potential to develop new ways to answer the needs of our customers. We have learnt a lot about the desires and needs of Parisians. Our affordable offer of democratic designs answers their aspirations. With this new store at Rue de Rivoli, we want to go further by offering, among others, the largest choice possible of accessories and decorative items, to feel always better at home. With this property, with an exceptional location, Ingka Investments let us accelerate our omnichannel strategy to be more accessible, convenient and sustainable for the many,” said Walter Kadnar, CEO & CSO of IKEA Retail France.
Ingka Group consists of three business areas which are IKEA Retail, Ingka Centres and Ingka Investments. Ingka Group’s core business is IKEA Retail, which consists of 374 IKEA stores across 30 markets
