Ingka Investments, part of Swedish retail furniture giant IKEA's parent group, has secured a single tenant for the 47,000-square-foot of offices located above the recently opened IKEA store at 214 Oxford Street in London, CoStar News can reveal.
Ingka bought the former Topshop London flagship in 2021 for £378 million for redevelopment as an IKEA store on the famous retail thoroughfare with some of the space set aside to house its UK and Ireland business.
The redevelopment also included 47,000 square foot of offices on the top floor. That space has now been leased. Market sources said the tenant is Dream Games, the mobile gaming company behind games including Royal Match and Royal Kingdom, which has offices in Turkey and London.
The Grade II-listed building has seen former back of house secondary retail space reworked as Grade A offices as part of the wider development.
Avison Young and JLL are joint leasing agents on the offices with Avison Young appointed to look after the building and tenants on behalf of Ingka Investments.
A spokesperson for Ingka Investments said: “Ingka Investments can confirm it has signed a contract with Dream Games, and that most of the office space is now let.”
Ingka Investments has being buying stores on famous retail thoroughfares and in shopping centres across the globe in recent times to bring IKEA closer to customers by opening new store formats in city locations, in response to "increasing urbanisation and new shopping behaviours".
The Oxford Street property comprises 239,000 square feet over seven floors, with retail on six floors. It opened in May as IKEA UK’s second smaller store format, following the opening of IKEA Hammersmith. Since 2019 Ingka Group has opened stores and shops in major cities such as Tokyo, Madrid, Moscow, Paris and New York.
The London store has a focus on home-furnishing accessories, with the full range available to buy for home delivery. It houses a 130-seat Swedish deli and showrooms, as well as offering one-to-one design consultations. The store displays about 6,000 Ikea products, with around 3,500 of those available to take away on the spot, while the rest can be delivered to homes.
The administrators to Redcastle (214 Oxford Street) Limited, which owned Top Shop's flagship address next to Oxford Circus station, appointed Eastdil and Savills to advise on the site's future at the beginning of 2021, with Eastdil appointed on the sale.
Top Shop parent Arcadia and its owner Sir Philip Green had been seeking real estate disposals as the wider retail group faced major challenges that in December 2020 saw it collapse into administration.