IKEA and Nordecon sign agreement to construct an IKEA store in Estonia
Nordecon AS and Viljandi Real Estate OÜ have signed an agreement to construct a building for an IKEA concept store in Kurna village, Rae parish, which is in close proximity to Tallinn city. The building will be leased to the IKEA franchisee in Estonia, Runikon Retail OÜ. The cost of the contract is approximately 23 million euros, excluding VAT. The IKEA store is planned to open in autumn 2022.
Johannes R. Jóhannesson, CEO of IKEA in Baltic, says it is an important milestone towards full IKEA presence in Estonia. “IKEA entered the Estonian market in August 2019 with the launch of e-commerce and Pick-up Point in Tallinn. We are extremely grateful for the successful start, which has exceeded our expectations. Now we are taking the next steps in bringing the full IKEA experience to the people of Estonia. The new IKEA concept store will help us fulfil the IKEA vision to create a better everyday life for the many by meeting the needs of the Estonians in an even more convenient and accessible way”, - says J. R. Jóhannesson.
The IKEA store will be a “stand alone” store on 2 floors of approximately 30.000 m2. It will offer more than 8.000 home furnishing solution and products for immediate take-way. In addition, it will have a Restaurant, Swedish Food market and Bistro.
Gerd Müller, Chairman of the Board of Nordecon AS, holds the upcoming project in a high esteem: “IKEA is a brand representing long history, quality and sustainability. It is with great pleasure we sign this contract today, knowing that our co-operation will be based on international standards and high expectations.”
The construction works will begin as soon as local government issues relevant building permits and works will last for approximately 16 months. Planned opening of the IKEA store is in autumn of 2022.
IKEA is a global home furnishing company, originating from Sweden and operating for more than 75 years. The vision of the company is to create a better everyday life for the many. IKEA is currently present in Estonia through e-commerce at IKEA.ee and a Pick up Point (physical commercial area) in Tallinn.