Ingka Investments, the investment arm of Ingka Group, the
largest IKEA retailer, invests in Extell's new world-class office
and retail tower.
NEW
YORK, July 1, 2024 /PRNewswire/
-- Ingka Investments, the investments arm of Ingka Group,
which owns the majority of IKEA stores
worldwide, announced today a real estate investment on
New York City's iconic Fifth
Avenue. The investment in 570 Fifth Avenue will be part of the real
estate portfolio of Ingka Investments and marks a significant step
in Ingka Group's long-term strategy to enhance its city center
retail presence. The new Class-A retail and office tower is being
developed by Extell Development Company, one of the nation's
premier development firms. The building is scheduled for tenant
delivery in 2028.
![Image by KPF. Image by KPF.](https://mma.prnewswire.com/media/2451995/Ingka_Investments_5th_Avenue_Rendering.jpg)
This strategic alliance between two industry leaders marks the
largest development on Fifth Avenue in more than 60 years. Located
at the intersection of the Plaza and Grand Central Districts, 570
Fifth Avenue will be a 1,000,000-square-foot mixed-use
commercial building, with an outstanding address, exceptional
access to transportation, world-class architecture, and next level
services and amenities. A new IKEA customer meeting point will be
located in the building's prime retail space of 80,000 sq ft
arranged over two large cellar levels with a corner entrance on
Fifth Avenue. With a focus on sustainability and wellness, the
tower is targeting a minimum LEED Gold certification and will
exemplify high sustainability standards and low carbon operation
principles.
Peter van der Poel, Managing
Director of Ingka Investments: "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."
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. This initiative involves
introducing innovative retail formats in city centers, enhancing
accessibility and convenience for customers. Located just a
three-minute walk from Grand Central Station and Bryant Park, the new development benefits from
unmatched accessibility, tapping into the vibrant energy of
Manhattan.
Javier Quiñones, CEO & Chief Sustainability Officer, IKEA
U.S.: "This next phase of our investment and expansion
in the U.S. signals our commitment to bring IKEA closer to
people in city centers. While we are in the very early
stages of planning for the IKEA location, we can promise to deliver
an experience that is full of inspiration and designed to meet the
home furnishing dreams of the many New Yorkers."
Since 2019 Ingka Group has opened stores and shops in major
cities, including Tokyo,
Madrid, Paris and London, as well as planning studios in
Vienna, Barcelona, Berlin and Prague – bringing the IKEA home furnishing
offer to many more people, as well as the company's latest
innovations within the digital customer experience.
Gary Barnett, Founder &
Chairman, Extell Development Company: "We have been working
on assembling this project for almost two decades and Ingka
Investments' substantial commitment allows us to move forward with
the construction and leasing of the best new office building in
New York. This will be the first
office tower to begin construction in the city post pandemic and it
is a great sign of New York's
resilience. We are thankful to the Ingka Group team for their
confidence in the project and New
York's future and look forward to a rewarding partnership.
We are also thankful to our lenders, Meritz Securities and IGIS,
for their continued commitment to the project."
Ingka Investments will hold a one-third stake in the project
alongside preferred equity components and full ownership of the
prime retail space where the IKEA customer meeting point will be
located. Extell will hold a two-thirds stake in the project.
About Ingka Group
With IKEA retail operations in 31
markets, Ingka Group is the largest IKEA retailer and represents
about 90% of IKEA retail sales. It is a strategic partner to
develop and innovate the IKEA business and help define common IKEA
strategies. Ingka Group owns and operates IKEA sales channels under
franchise agreements with Inter IKEA Systems B.V. It has three
business areas: IKEA Retail, Ingka Investments and Ingka
Centers.
About Ingka Investments
Ingka Investments, the investment arm of Ingka Group, supports the
long-term growth and financial strength of Ingka Group and IKEA.
Ingka Investments focuses on investing in core inner city real
estate and as well as large distribution and logistics parks in
major cities important to IKEA Retail. As the retail industry
continues to evolve, real estate investments play a central role in
supporting the global expansion strategy of IKEA Retail – bringing
IKEA closer to customers. Through long-term ownership in real
estate, IKEA Retail is able to reduce operating costs and invest in
its business.
Read more at www.Ingka.com.
About Extell Development Company
Founded and headed by Gary
Barnett, Extell Development Company is a nationally
acclaimed real estate developer of residential, commercial, retail,
hospitality, and mixed-use properties, operating primarily in
New York City, Utah, and other premier locations across the
nation. In collaboration with world-class architects and design
professionals, Extell creates properties distinguished by
sophisticated design, gracious floor plans and first-class
amenities.
Extell pioneered Manhattan's
Billionaires' Row, having developed some of city's
ultra-luxury properties along 57th Street,
including Central Park Tower, the tallest residential building in
the world located above Nordstrom's flagship Manhattan store and One57, the record-breaking
glass tower which includes condominiums above Park Hyatt's five-star flagship hotel.
Additional completed projects include One Manhattan Square, the
largest condominium building on Manhattan's Lower East Side waterfront;
Brooklyn Point in Downtown Brooklyn, and The Lofts Pier
Village, a luxury oceanfront condominium at the Jersey Shore with
resort-style amenities, as well as the W Hotel in Times Square and
the Boston Intercontinental Hotel.
Read more at www.extell.com.
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SOURCE IKEA