IKEA’s shopping malls business said on Thursday it had bought the Shops at Aura mall in the centre of Toronto in Canada as part of the furniture group’s strategy shift towards inner cities, Reuters reports.
It bought the mall, which has been struggling to attract tenants and visitors, from private equity firm KingSett Capital.
Ingka Centres, which has 46 malls anchored by IKEA stores across Europe, Russia and China, said in a statement it would redevelop the ground and first floors of the building into an IKEA store that would open around the turn of the year.
It will be the first inner-city IKEA store in Canada. The building’s remaining mall space will mark Ingka Centres’ entry into Canada.
Located at the base of the Aura skyscraper, the property currently has around 12,000 square metres (14,350 square yards) of leasable area across three floors.
“The new downtown format IKEA store will comprise a large proportion of the redeveloped mall,” an Ingka Centres spokesman said.