Ikea has agreed a deal to sell 25 retail parks in eight European countries to the specialist asset manager Pradera for €900m, offloading about half of its retail park portfolio on the continent.
The parks, each located beside an Ikea store, have been sold to a Pradera fund, European Retail Parks SCSp, which is backed by private-wealth group LJ Partnership.
The Swedish flat-pack furniture retailer earlier said it was offloading stores that did not “fit the vision” of creating “inspiring and family-friendly meeting places”, but that it would retain another 25 retail parks across Europe. Its shopping centres division, Ikea Centres, also operates in Russia and China.
David Fletcher, chief executive of Pradera, said retail units in the parks were let to tenants such as Media Markt, OBI, Decathlon and Leroy Merlin. “As the world’s leading home furnishings retailer, IKEA is a strong anchor in these locations,” he added.
Totalling 538,000 square metres of retail space, the parks are in Germany, France, Poland, Sweden, Finland, Denmark, the Czech Republic and Switzerland. The deal will be completed in two parts in April and August, with Pradera advised by JLL and Ikea Centres by Cushman & Wakefield.
The sale comes as levels of investment in European property retreat from 2015 highs, while locations are becoming increasingly polarised between prime and less-desirable secondary sites, according to estate agency Savills.