Ingka Centres, part of Ikea's parent Ingka Group, has acquired a major Paris inner-city shopping destination, Italie Deux, together with the recent high-street extension ItaliK, and the neighbouring office complex Apollo.
The deal was struck in two parts, with Ingka acquiring UK REIT Hammerson's 25% stake in Italie Deux and the ItaliK extension, and AXA Investment Managers - Real Assets's 75% stake in the assets, which include the Apollo complex.
Hammerson revealed that its 25% stake was sold for a cash consideration of €164 mln, representing a 4% discount to its 31 December 2022 book value and a net equivalent yield of 5%.
In 2019, Hammerson divested 75% of its Italie Deux stake and the proposed ItaliK extension for €430 mln to AXA. As part of the deal, Hammerson agreed to complete ItaliK for around €20 mln.
Italie Deux is located on the left bank of Paris and provides a mix of retail, leisure and cultural space. Brands within the destination include Printemps, Fnac, Zara, Sephora and Carrefour.
The 6,400 m2 Italik extension, added a further 1,900 m2 of retail, 1,800 m2 of F&B, 1,500 m2 of co-working and activities, and 1,200 m2 of events and leisure space.
All three assets will be united into Ingka Centres’ first urban meeting place in France. The firm said that sustainability will be at the forefront in line with Ingka Centres’ ambition to achieve 100% renewable energy by 2030.
This becomes the fourth urban meeting place acquisition strengthening Ingka Centres’ portfolio, following Livat Hammersmith in downtown London, which recently celebrated its 1-year anniversary, Toronto and San Francisco.
Ingka Centres is also continuing to develop larger new-build meeting places in markets such as India and China, tailoring its approach to local needs.
Cindy Andersen, Ingka Centres’ managing director, said: 'Paris is famous for its unique vibe that brings people together and inspires great ideas.
'Italie Deux is one of the premier retail destinations in Paris, known for its mix of shopping, food and culture, and we are excited to continue to develop its offer with an affordable, sustainable range of destination retail, culinary experiences and amenities to help our partners and communities to thrive.'
The new meeting place will incorporate the Apollo office complex, which once refurbished will provide approximately 18,000 m2 of office space spread over nine levels with outdoor and rooftop gastronomy spaces as well as social areas, terraces and even urban agriculture areas expected to supply cafeterias and restaurants.
Andersen added: 'Vibrant leisure and retail spaces close to the workplace are now seen as an essential element of the employer offer. We’re excited to bring Apollo, Italie Deux and ItaliK together as a united space for Parisiens to shop, work, and play and enjoy everyday life in sustainable ways.'
The mixed-use property is located at Place d’Italie featuring strong public transport links – with 3 metro lines – and 1,500 parking spaces. Within easy walking distance there are many international headquarters while the nearby Paris Rive Gauche district is home to 15,000 residents, 50,000 workers, and 30,000 students.
Ingka was advised by Cushman & Wakefield.
