Ingka Investments, part of the Ingka Group which also includes furniture giant Ikea, has inked a conditional purchase agreement for the former Top Shop flagship in Oxford Circus, London.
The purchase price for 214 Oxford Street is £378 mln (€446 mln).
The investment will form part of the real estate portfolio of Ingka Investments, the investment arm of Ingka Group. Part of the vacant retail space will be used by Ikea UK & Ireland, as part of a group strategy to bring Ikea into city locations.
The property comprises a total of 22,200 m2 over seven floors, with retail space on six floors. It will host Ikea UK’s second smaller store format and will follow the opening of IKEA Hammersmith later this winter.
Said Krister Mattsson, managing director of Ingka Investments: '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 Group has opened stores and shops 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, Ikea UK & Ireland, said: '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.
'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.'
Ingka Group is a strategic partner in the IKEA franchise system, operating 389 Ikea stores in 32 countries. Ingka Group has three business areas: IKEA Retail, Ingka Investments and Ingka Centers.
Concluded Mattsson: 'This investment also represents our continued commitment to invest in the UK following our recent investments in location technology company what3words and Winnow, a company that works to reduce commercial food waste.'
