IKEA to invest up to 3b euros in shopping centres

Copenhagen

IKEA, the world's biggest furniture retailer, plans to spend up to three billion euros (S$4.3 billion) on new shopping centres over the next five to seven years, aiming to cash in on the popularity of its stores by collecting rent from retailers keen to set up nearby.

The Swedish company formed IKEA Centres last year to group its existing out-of-town shopping malls and retail parks, and further develop a real estate business out of its core retail chain that sells cheap, mainly self-assembly furniture.