Swedish retailer IKEA buys land in Kyiv

12:15, 07 November 2007
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The deal is estimated at USD 50 to 80 mln

IKEA, Swedish largest furniture retailer, has acquired a 20 ha land lot in the Ukrainian capital. According to market players the deal is estimated at USD 50 to 80 mln. The land is in Kyiv`s Podolsk section, Building reports.

According to Property Xpress, IKEA branch promised to comment on the transaction later. Earlier, Per Kaufmann, General Director at IKEA for Russia and CIS, noted that the company will acquire its first parcel for construction of a commercial center near Odessa.

As indicated in Property Xpress, by the end of this autumn, IKEA will sign a contract with the European Bank of Reconstruction and Development (EBRD) on receiving a USD 100 mln loan.

According to the documentation, the loan is a part of a USD 414 mln plan for construction of four mega commercial centers in Ukraine`s regions.

Anchor tenants in these commercial centers will be IKEA furniture outlets. The entire project is due for completion within two years. IKEA Group, founded in 1943, has a commercial center network of 223 outlets in 24 countries. Besides this, 30 stores, managed by private franchisees, operate in 16 countries.

This news was monitored by the Action Ukraine Monitoring Service for the Action Ukraine Report (AUR), Morgan Williams, SigmaBleyzer, Editor. 

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