Ingka Investments, part of Ingka Group, which owns the majority of Ikea stores worldwide, has made a real estate investment on New York City’s Fifth Avenue as part of a strategy to enhance the company’s city center retail presence.
Extell Development Co. is developing the new retail and office tower for opening in 2028. Inkga Group noted that the partnership with Extell will produce the largest development on Fifth Avenue in more than 60 years with more than a million square feet of mixed-use commercial space. Ikea will place a new customer meeting point in the building’s prime retail space, which will constitute 80,000 square feet arranged over two large cellar levels with a corner entrance on Fifth Avenue. Plans call for the tower to target a minimum LEED Gold certification, which will exemplify high sustainability standards and low carbon operation principles, Ingka Group stated.
The investment is another step in Ingka Group’s strategy to evolve its retail operations by adapting to urban growth and changing consumer shopping preferences in the United States, the company pointed out. The initiative involves introducing innovative retail formats in city centers and enhancing consumer accessibility and convenience. Located just a three-minute walk from historic Grand Central Station, Ingka Group added, the new development benefits from easy accessibility.
In announcing the project, Peter van der Poel, managing director of Ingka Investments, said, “We are excited to share the news of this major investment that boosts our growth strategy across the U.S., a vital market for Ingka Group. Investing in Fifth Avenue goes beyond just growing our footprint: It’s about changing the way we engage with consumers and playing a part in creating strong, sustainable economies and business communities.”
