Joint administrators of Redcastle, the vehicle that owned the Topshop and Topman flagship at 214 Oxford Street, W1, have confirmed the sale of the building to Ingka Investments, the investment arm of Ikea-owner Ingka Group.
The £378m transaction is expected to complete in January 2022 and will see the property become Ikea UK’s second city-centre format store.
Redcastle (214 Oxford Street) Ltd was the property-owning subsidiary of Arcadia Group and held the long leasehold interest in the 239,000 sq ft flagship, which has seven floors.
The new store is set to open in autumn 2023, with a focus on home-furnishing accessories. The full range will be available to buy for home delivery.
Krister Mattsson, managing director of Ingka Investments, said: “This property offers great potential for retail space, and we firmly believe in the long-term value of the real estate market in London.
“Ingka Investments continues to target acquisitions of commercial real estate in other major cities where Ingka Group operates to find out how and where we can best meet customer needs. Securing ownership of properties in prime locations instead of leasing will preserve value on a long-term basis.”
He added that the investment also reflected the investment arm’s “continued commitment to invest in the UK”, following recent investments in location technology company what3words and Winnow, a company focusing on reducing commercial food waste.
Ed Boyle, managing director at administrator Interpath Advisory, said: “As shoppers, workers and tourists return to central London following the pandemic, Ikea’s presence in Oxford Circus will help further boost footfall and provide a real fillip for the city’s retail sector.”
Peter Geissel, managing director at Eastdil, which advised on the sale of the property, said: “From the outset of this process, the level of interest shown in this landmark building was phenomenal. It’s great to see such an illustrious and famous name occupy this prime spot in the heart of London.”
Savills was acting as leasing agent on 214 Oxford Street.
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