STOCKHOLM (Reuters) -Ingka Group, the biggest global IKEA retailer, has acquired a Manhattan property where it plans to open a new store as part of the furniture group’s expansion in the United States, it said on Wednesday.
The 53,000 square feet property in New York City’s SoHo district will house a two-story IKEA store, while four floors will be renovated for office use which will then be rented out, Ingka Group’s investment arm said.
The purchase price for the building was $213 million, Ingka Investments told Reuters.
The purchase is part of the retailer’s $2.2 billion expansion plans for the United States, announced in 2023, Ingka said.
Last year Ingka invested in a property project on Manhattan’s Fifth Avenue where it also plans to open a store.
While IKEA for decades established its stores in out-of-town locations, it has in recent years added developments in major city centres such as Paris and London.
(Reporting by Greta Rosen Fondahn, editing by Terje Solsvik)
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