Ingka Investments Makes First-Ever Logistics Acquisition In Ireland
Ingka Investments, the investment arm of Ikea owner Ingka Group, has acquired Greenogue Logistics Park in Dublin in its first-ever logistics investment.
Ikea Retail UK and Ireland has also announced that it is to open its first Irish Customer Distribution Centre at the site.
The acquisition by Ingka Investments is part of the company’s ongoing strategy to invest in distribution and logistics real estate in major cities where Ingka Group operates. It forms part of a wider strategy to buy key real estate locations after earlier acquisitions in Paris and London's Oxford Circus, which are to become city centre Ikea stores.
“Ingka Investments has only recently started to acquire real estate in prime locations," Ingka Investments Deputy Managing Director Frederik de Jong said in a statement. "We are now proud to announce our first investment in logistics parks in Ireland. Our goal is to secure long-term financial returns by utilising our strong financial position to acquire mixed-use or multi-tenant real estate.”
The news is a welcome boost to the Irish logistics sector, where confidence has fallen from 60.3 to 51.2 among logistics operators over the past 12 months according to a new report from CBRE and Kingspan.
Ingka Investments said that the investment at Greenogue “underscores the commitment of Ingka Group and Ikea Retail" in the UK and Ireland and sets the foundation for Irish expansion in the future.
The fit-out is expected to begin in the coming weeks, with the first deliveries set to leave the warehouse in early 2024. When fully operational, the CDC will create 120 jobs across warehousing, logistics and administration.
To date, Ikea products have been delivered to consumers via distribution centres in the UK. Locating the company’s new CDC in Ireland is expected to reduce delivery lead times by more than half.
The buildings are BER A2 rating with LEED Silver accreditation, including rainwater harvesting and roof-based solar panels.
“We remain committed to — and are continually investing in — the future of our physical store in Dublin, but we want people to enjoy the Ikea experience no matter where they choose to engage with us," Ikea UK and Ireland Country Customer Fulfilment Manager Jakob Bertilsson said. "The CDC will greatly enable this, by increasing availability of our products and reducing lead times. It also builds on our ambitions for 100% zero emission last-mile delivery for 2025."
