Ingka buys Dublin distribution centre for Ikea UK & Irish arm
Ingka Investments, the investment arm of the largest IKEA franchisee, Ingka Group, has acquired Greenogue Logistics Park in Dublin.
The project has been developed by Palm Logistics and development partner Jordanstown Properties.
The acquisition is Ingka Investments’ first logistics investment and will house IKEA Retail UK & Ireland’s first Irish customer distribution centre.
Ingka Group said in a statement that the investment underscores its and IKEA’s commitment to the UK and Ireland and is a foundation for future expansion.
Fit-out of the building will begin in the coming weeks, with the first deliveries expected to leave the warehouse in early 2024.
Until now, IKEA products have been delivered to consumers via distribution centres in UK and a CDC in Ireland will enable faster customer fulfilment and better availability of IKEA products in the country.
Delivery lead times more than halved. Ingka also pointed out that locating a distribution centre closer to consumers will reduce CO2 emissions.
The buildings, which have BER A2 ratings and LEED Silver accreditation, include rainwater harvesting and roof-based solar panels, which Ingka said makes it one of the most environmentally sustainable and energy efficient logistics facilities in Ireland.
Ingka Investments’ strategy is to invest in distribution and logistics real estate in major cities where the group operates and it stated that ownership instead of leasing will ensure independence, greater quality control, less external risk, and long-term benefits to the local community.
“Ingka Investments has only recently started to acquire real estate in prime locations,” said Frederik de Jong, deputy managing director at Ingka Investments. “Following earlier acquisitions in Paris and London Oxford Circus, which are to become innovative city centre IKEA stores, we are now proud to announce our first investment in logistics parks in Ireland.
“Our goal is to secure long-term financial returns while enabling IKEA Retail to grow by utilising our strong financial position to acquire mixed-use or multi-tenant real estate.”
He added that Greenogue Logistics Park has a raft sustainability and efficiency features, backed up by electricity produced by the company’s own wind farm in Ireland.