IKEA’s shopping centres arm buys San Francisco mall in its first US real estate deal

STOCKHOLM (CNA) – IKEA’s shopping centres business has made its first United States (US) real estate acquisition, buying the 6X6 mall in San Francisco, after telling Reuters in May it was engaged in several negotiations for inner-city acquisitions in the US.

It bought the 6X6 mall from Alexandria Real Estate Equities Inc and TMG Partners, an Ingka Centres spokesman said.

“We will be sharing details of our exciting plans for the 6×6 property, where IKEA Retail US will play an integral role, in the near future,” the company said in an emailed statement.

Ingka Centres is one of the world’s biggest mall owners, with 45 across Europe, Russia and China, each anchored by an IKEA store. With the furniture retailer, it is shifting its focus towards city-centre from out-of-town locations.

It said in May that locations in New York, Los Angeles, San Francisco and Chicago were high on its wish list.

Ingka Centres, a division of Ingka Group which owns most IKEA stores worldwide, had a leasable area of four million square-metres globally and 480 million individual visits in the year through August 2019.

In the US, it will be taking on mall giants such as Simon Property Group, General Growth Properties and Westfield .

In January, it made its first acquisition of an existing mall location, buying Kings Mall in London.

A woman walks outside Ikea store in the south-west of Stockholm. PHOTO: AFP