IKEA buys store from landlord
Swedish retailer IKEA has bought its fastest growing Australian store from the landlord.
The off-market $163.75 million deal for the Innaloo outlet – reported March – is with GDI Property Group which outlaid $143.5m seven years earlier.
Settlement was subject to the removal of a caveat and easement.
Certain acknowledgements and waivers were also needed from the City of Sterling.
The property, 6 Sunray Drive, includes four peripheral buildings IKEA will retain as investments.
“This milestone purchase enables us to build on the deep connection we already have with our Innaloo customers and community and supports us in reaching even more of the many people of Western Australia in the years to come,” IKEA Australia chief executive officer, Mirja Viinanen, said.
“The success of the Perth market for IKEA Australia has enabled us to invest with confidence and optimism for further growth and development,” she added.
“This milestone purchase enables us to build on the deep connection we already have with our Innaloo customers and community and supports us in reaching even more of the many people of Western Australia in the years to come,” according to the executive.
“Ownership opens the door to making new improvements to our home, finding efficiencies within our physical space and installing infrastructure to support our omnichannel growth and bold sustainability goals.
Innaloo is 10 kilometres north east of Perth’s CBD.
IKEA makes it 10
Opened in 2008, the asset includes 2993 square metres including in the four level IKEA showroom, a 400-seat restaurant and over 1000 car parks.
IKEA was on a lease expiring next year with a five year option.
It now owns the real estate for its 10 Australian stores.
“IKEA Perth had the highest sales growth of any IKEA store in Australia in the last year, while at the same time prioritising exceptional customer experience,” Ms Viinanen said.
“In FY24, IKEA Perth delivered a 10 per cent increase in volume sold year on year and achieved the highest daily turnover in IKEA Australia’s history,” she added.
“Over the coming months, the IKEA store will consider what upgrades may be possible and necessary in the short and long term, including installation of rooftop solar PV panels, EV chargers on site for delivery vehicles and transitioning to heating and cooling powered by renewable energy to contribute to the lowering of IKEA Australia’s operational climate footprint,” according to the executive.
Last week we reported Tangalooma Island Resort bought a Brisbane mixed use complex it part occupied for over 40 years from the University of Queensland, which held three decades.
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