Ingka Investments Partners with Extell on Landmark Fifth Avenue Development

Ingka Investments Partners with Extell on Landmark Fifth Avenue Development

(IN BRIEF) Ingka Investments, the investment arm of Ingka Group, has announced a significant partnership with Extell Development Company to invest in 570 Fifth Avenue, a new mixed-use office and retail tower in New York City. This strategic move marks Ingka Group’s expansion into city center retail and urban development in the U.S., aiming to enhance consumer engagement and promote sustainable economic growth. Scheduled for completion in 2028, the development will include an 80,000-square-foot IKEA retail space and aims for LEED Gold certification, emphasizing sustainability and operational efficiency. The project underscores Ingka Group’s commitment to evolving its retail strategy and strengthening its presence in key urban markets.

(PRESS RELEASE) LEIDEN, 2-Jul-2024 — /EuropaWire/ — Ingka Investments, the investment arm of Ingka Group, announced its strategic investment in 570 Fifth Avenue, a forthcoming mixed-use office and retail tower developed by Extell Development Company in New York City. This significant venture marks Ingka Group’s expansion into city center retail and urban development strategies in the United States, reinforcing its commitment to enhancing consumer engagement and fostering sustainable economies.

Scheduled for completion in 2028, 570 Fifth Avenue will be a 1,000,000-square-foot Class-A commercial building, prominently positioned at the intersection of the Plaza and Grand Central Districts. It will feature premier retail space spanning 80,000 square feet over two cellar levels, strategically located with a Fifth Avenue entrance, serving as a new customer meeting point for IKEA. The development prioritizes sustainability with a LEED Gold certification target, reflecting high environmental standards and operational efficiency.

Peter van der Poel, Managing Director of Ingka Investments, highlighted the strategic importance of the investment: “Our partnership with Extell on 570 Fifth Avenue underscores our growth strategy in the vital U.S. market. This investment transcends mere footprint expansion; it’s about reshaping consumer interaction while contributing to robust, sustainable business communities.”

The development’s location, just steps away from Grand Central Station and Bryant Park, ensures unparalleled accessibility and connectivity within Manhattan, leveraging the city’s dynamic urban energy.

Gary Barnett, Founder & Chairman of Extell Development Company, expressed enthusiasm about the project’s progression: “Ingka Investments’ substantial commitment propels us forward in realizing our vision for 570 Fifth Avenue, New York’s first post-pandemic office tower. This landmark project signifies New York’s resilience, and we are grateful for Ingka Group’s confidence and partnership in shaping the city’s future.”

Ingka Investments will hold a one-third stake in the project, including preferred equity components and full ownership of the prime retail space housing the IKEA customer meeting point, while Extell retains a two-thirds stake.

For more information on the development and Ingka Group’s urban retail initiatives, visit Ingka Group.

About Ingka Group

With IKEA retail operations on 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 Centres. Read more on www.Ingka.com.

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.

Media Contact:

Tel: +46 70 993 6376
email: press.office@ingka.com

SOURCE: Ingka Holding B.V