Ingka Investments, the investments arm of Ingka Group, which owns the majority of Ikea stores worldwide, announced a real estate investment in 570 Fifth Avenue, being developed by Extell Development Company. The building is scheduled for tenant delivery in 2028. The result will bring an Ikea customer meeting point in the building’s prime retail space of 80,000 square feet, arranged over two large cellar levels with a corner entrance on Fifth Avenue.
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 retail formats in city centers, enhancing accessibility and convenience for customers.
“This next phase of our investment and expansion in the U.S. signals our commitment to bring Ikea closer to people in city centers,” said Javier Quiñones, CEO and chief sustainability officer, Ikea U.S. “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.”
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. The building is 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 one million-square-foot mixed-use commercial building, 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.
“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,” said Peter van der Poel, managing director of Ingka Investments. “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.”
