Ikea is set to open a new store on New York’s Fifth Avenue after its owner’s investment arm snapped up a stake in a 1,000,000sq ft mixed-use commercial building on the famous street.
Ingka Investments revealed on Monday it had invested in 570 Fifth Avenue, which is currently being built into a new Class-A retail and office tower by Extell Development.
It said that part of the building’s 80,000sq ft retail space arranged over two large cellar levels will include Ikea’s small format ‘Customer Meeting Point’ concept.
The retailer’s US chief executive and chief sustainability officer Javier Quiñones said: “This next phase of our investment and expansion in the US signals our commitment to bring Ikea closer to people in city centres.
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“While we are in the very early stages of planning for the Ikea location, we can promise to deliver an experience that is full of inspiration and designed to meet the home furnishing dreams of the many New Yorkers.”
The tower is scheduled for tenant delivery in 2028 and Ingka said the building will “exemplify high sustainability standards and low carbon operation principles”.
Ingka will hold a one-third stake in the project including full ownership of the retail space, while Extell will retain two-thirds.
The investment forms part of Ingka’s strategy to evolve its retail operations by adapting to urban growth and introducing innovative formats in city centres.
Last year, the group acquired its second UK shopping centre, Churchill Square in Brighton, in a deal estimated to be worth £145m. It is set to open an Ikea store in the centre.
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