Ingka Investments to acquire former Topshop site at London’s Oxford Circus
Ingka Investments is to acquire the former Topshop store at London’s Oxford Circus for a purchase price of £378 million.
The investment arm of the company behind IKEA has signed a conditional purchase agreement for the site at 214 Oxford Street, which will partly be used by IKEA UK & Ireland.
In a statement, the company said the move forms part of its plans to bring IKEA closer to customers by opening new store formats in city locations. Spanning 22,200 square metres over seven floors, the space will house IKEA UK’s second smaller store format and will follow the opening of IKEA Hammersmith.
Krister Mattsson, managing director of Ingka Investments, said: “We are delighted to have signed this agreement for a property on one of Europe’s busiest shopping streets and it represents another opportunity to create a more accessible, affordable and sustainable IKEA for our customers.
“This property offers great potential for retail space, and we firmly believe in the long-term value of the real estate market in London. Ingka Investments continues to target acquisitions of commercial real estate in other major cities where Ingka Group operates to find out how and where we can best meet customer needs. Securing ownership of properties in prime locations instead of leasing will preserve value on a long-term basis.”
Since 2019, Ingka has been launching IKEA stores in major cities such as Tokyo, Madrid, Moscow, Paris and New York, as well as planning studios in Vienna, Barcelona, Berlin and Prague.
Peter Jelkeby, country retail manager and chief sustainability officer at IKEA UK & Ireland, explained: “Today we are seeing societal changes that have evolved customer behaviours and the retail industry as a whole. Big global movements in technology, demographics, urbanisation and environmental awareness have caused significant waves of change in the way we live and shop.
“Even though online shopping continues to accelerate at a rapid pace, our physical stores (large and small!), will always be an essential part of the IKEA experience – as places for inspiration and expertise, community and engagement.
“Bringing IKEA to the heart of Oxford Street – one of the most innovative, dynamic and exciting retail destinations in the world – is a direct response to these societal shifts and an exciting step forward in our journey to becoming a more accessible IKEA.”
The new store is set to open in the autumn of 2023 and will focus on selling home furnishing accessories, although the retailer’s full range will be available to buy for home delivery. The acquisition is expected to complete in January.
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