Ingka Investments, the investment arm of Ingka Group, the largest IKEA retailer, has acquired Greenogue Logistics Park in Dublin.
With this acquisition – the first-ever logistics investment undertaken by Ingka Investments – IKEA Retail UK & Ireland has also announced that it is to open its first Irish Customer Distribution Centre (CDC) at the site.
The fit-out of the building will begin in the coming weeks, with the first deliveries expected to leave the warehouse in early 2024. When fully up and running, 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. The retailer says that relocating the company’s new CDC in Ireland will enable quicker customer fulfilment and better availability of IKEA products in the country, with delivery lead times reduced by more than half. Locating a distribution centre closer to the end-consumer will also result in a reduction in CO2 emissions. Correspondingly, the buildings are BER A2 rating with LEED Silver accreditation, including rainwater harvesting and roof-based solar panels, making it one of the most environmentally sustainable and energy efficient logistics facilities in Ireland.
Ingka Investments says the acquisition aligns with its ongoing strategy to invest in distribution and logistics real estate in major cities where it operates: "Securing ownership of the property instead of leasing ensures independence, greater quality control, less external risk, and long-term benefits to the local community."
Jakob Bertilsson, country customer fulfilment manager at IKEA UK and Ireland comments: “Establishing a CDC in Ireland is a hugely exciting and significant step in further expansion in Ireland, as well a continuation in our omnichannel strategy to support customers however they chose to shop with us. 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, whether through our full-size store, plan and order points, or online. 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, a critical component of our sustainability strategy.”
Frederik de Jong, deputy MD at Ingka Investments, adds: “Ingka Investments has only recently started to acquire real estate in prime locations. 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. We are proud of our choice of Greenogue Logistics Park, which has a raft of latest sustainability and efficiency features, backed up by electricity produced by our own wind farm in Ireland.”
