Thursday 26 April 2018

IKEA plans €1bn sale of European retail park assets

IKEA is selling 27 retail parks across Europe.
IKEA is selling 27 retail parks across Europe.

Dahlia Fahmy and Jack Sidders

Ikea, the world's biggest furniture retailer, plans to sell about €900m of European retail parks surrounding its stores, according to people with knowledge of the matter.

Ikea has hired Cushman & Wakefield to help market the assets, two of the people said. The people asked not to be identified because the information is private. A spokeswoman for Ikea, confirmed that the company plans to sell 27 European retail parks. She declined to comment on the value or the adviser. A spokesman for Cushman & Wakefield declined to comment.

Buyers are investing record amounts in European shops to benefit from the region's growing economy and rising property values. Shops valued at €69bn changed hands last year, 31pc than in 2014, according to data compiled by CBRE.

Twelve of the retail parks are in Germany, with the rest scattered across Poland, Sweden, France, Finland, Switzerland and the Czech Republic, Thorell said. Ikea will have 25 parks left in Europe after the sale is complete, she said.

The plan is tied to Ikea's strategy of only keeping properties that allow it to collaborate with nearby tenants and create "inspiring and family-friendly meeting places," Thorell said.

"We're selling the Ikea parks that don't fit that vision," she said. "We're not selling everything."

IKEA controls a successfuls tore in Dublin and this week revealed plans to open a second outlet in south Dublin.

It will open its first "order and collection" point at Carrickmines in the south of the city.

"Acting primarily as a planning studio to plan and order more complex purchases such as kitchens, wardrobes and sofas, the new Order and Collection Point will also feature the much-loved IKEA room sets providing inspiration and ideas for the home and expert co-workers, offering home furnishing knowledge and advice," the company said when announcing the plan. (Bloomberg)

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