Swedish-founded flatpack furniture giant IKEA is a step closer to setting up in New Zealand.
The company has agreed to buy land at Sylvia Park in Auckland from Kiwi Property Group.
IKEA will buy 3.2 hectares on the eastern side of the Sylvia Park shopping mall as part of a conditional agreement. Photo: Unsplash
IKEA New Zealand chief executive Mirja Viianen said the agreement was an important step in starting operations.
"Our intention has always been for IKEA to enter the New Zealand market in a good way, which has included identifying the best locations for future stores and customer meeting points."
The conditional agreement is for IKEA to buy 3.2 hectares on the eastern side of the Sylvia Park shopping mall.
"Kiwis have been eagerly awaiting the arrival of IKEA and we're pleased to be working with them on that journey. Sylvia Park is already New Zealand's favourite shopping centre, and we're focused on finding innovative ways to make it even better," Kiwi Property chief executive Clive Mackenzie said in a statement.
He said Kiwi Property planned to develop a complementary 6430 square metre large format retail centre, directly adjacent to the land being sold to IKEA, which would open up further opportunities.
No prices were disclosed for the sale and development.
Ikea is the world's largest furniture retailer, with more 420 stores in more than 50 countries as well as online operations. It had sales worth about $67 billion last year.
It announced plans to enter New Zealand in 2018 but had been low key about its plans.
Its parent company, the Dutch-based INGKA Holding, was given the go-ahead in September to buy 5500 hectares in Otago for forestry.