IKEA, THE Swedish furniture giant has announced plans to build an urban district featuring retail space, apartments and offices in the north German city of Hamburg. The company says it expects the development to accommodate and service thousands of people.
“We want to build a new city district for the benefit of Hamburg,” Harald Mueller, head of the firm’s property subsidiary Landprop, told the local paper, Hamburger Abendblatt.
The retailer recently announced similar plans for a development in east London to include around 1,200 flats, offices, hotels and retail outlets.
The Hamburg project is expected to run along similar lines. Mr Mueller said Ikea is searching in Hamburg for about five acres of land to build on, in co-operation with city authorities.
Only last week, the company, which specialises in reasonably priced furniture that the buyer assembles, announced a €1 billion departure into the hotel sector. Ikea says it plans to open at least 100 hotels in Europe.
This project will be funded from revenues from the Ikea chain, which the company recently valued at €9 billion. It is understood the hotels will not bear the company logo and will instead be operated by a hotel management company.
Accounts just filed by Ikea Ireland show that revenues at the Ballymun store fell 7 per cent from €110.7 million to €102.8 million in the 12 months to the end of August 2011. The company employs 449 staff in Dublin.
