has sold the Kings Mall in Hammersmith, London for 拢170m (鈧�200m) to Ingka Centres, which will transform the shopping centre into an IKEA-achored mixed-use destination.
It is the first time that the parent company of IKEA has acquired a shopping centre and marks a shift to establishing more urban locations.
鈥淭hese urban projects are designed to complement IKEA retail鈥檚 strategy of opening smaller format stores in inner city locations in response to global urbanisation trends, changing customer behaviour and the digitalisation of retail,鈥� Ingka said.
In 2018, Ingka announced a new strategic vision and investment of 鈧�7.3bn to transform its business in response to the changing retail environment.
鈥淲e believe we can upgrade assets in good locations and Kings Mall is a great example of this,鈥� said Gerard Groener, Ingka Centres鈥� managing director.
鈥淢odern physical retail needs to be built around local community needs, a complementary mix of uses, digitalisation and sustainability. We simply have to stay relevant to our customers and understand how people want to spend their time.鈥�
Peter Jelkeby, country retail manager and chief sustainability officer at IKEA UK & Ireland, said: 鈥淥ur plan to open a new city centre store in Hammersmith is an exciting next-step, as we continue to respond to people鈥檚 evolving shopping habits, making IKEA more convenient than ever before.鈥�
The 27,133sqm shopping centre was acquired from the 拢2.6bn UK Real Estate Fund, which acquired the mall in 2015 for 鈧�153m.
Fund manager Jessica Berney said the sale proceeds would be reinvested in 鈥渢he other exciting development projects鈥� held by the fund.
鈥淭he sale of Kings Mall marks the successful completion of our business plan since acquisition in 2015 and we look forward to seeing what the new ownership will bring to the scheme,鈥� Berney said.
