ACROSS: INGKA CENTRES IS VERY ACTIVE WORLDWIDE, ESPECIALLY IN INDIA AND OTHER ASIAN COUNTRIES. WHERE IS INGKA FOCUSING ITS ATTENTION, IN PARTICULAR? WHERE DO YOU SEE THE GREATEST POTENTIAL FOR GROWTH?
CINDY ANDERSEN: In the last year, we’ve made substantial progress on our global growth journey. In the last month alone, we’ve opened Livat Shanghai in China, announced Lykli Noida in India, and signaled our re-entry into Germany by signing a purchase agreement for Pasing Arcaden in Munich. This builds on recent announcements we’ve made in the UK, France, and the US – it’s been a very busy, positive year for us.
We’re a global business, so we’re constantly looking worldwide for our next opportunity. We see Asia, specifically, as a real growth area for us. We have 10 meeting places in China, and two major developments are underway in India. Those are some of the world’s leading economies, and they have enormous potential.
In China, that’s already apparent. Livat Shanghai and Livat Xi’an, both of which opened this year, have entered a strong market that is bouncing back following the pandemic. We are happy to see growing visitation figures – with 107 million visitors to our Chinese meeting places during our latest financial year – and 96% occupancy rate. We strongly believe that the Chinese market will offer an array of opportunities for both us and our partners for the many years ahead.
ACROSS: WHAT GLOBAL TRENDS DO YOU SEE IN RETAIL REAL ESTATE, AND HOW ARE YOU FOLLOWING THEM?
ANDERSEN: The modern retail landscape revolves around meeting consumers where they are and being a valued part of their everyday lives. Our meeting places are designed to be community hubs that are convenient to access, are inclusive, and are full of experiences that bring joy and value to people’s lives.
When evaluating potential opportunities, location is critical. If you look at our recent acquisitions and developments, they’re all strategically located to optimize easy access for as many people as possible. For example, Pasing Arcaden is located in a vibrant part of Munich that is within 30 minutes of 1.9 million people. Our development in Noida, India, is situated 15 kilometers east of Delhi at the intersection of two metro lines set to be used by 60,000 people by 2030.
We always aim to be accessible to the masses and to ensure that they can easily enjoy our meeting places whenever they want to.
ACROSS: A MAJOR TREND IS THE FOCUS ON COMMUNITY. INGKA CENTRES DESCRIBES ITSELF AS VERY COMMUNITY- AND CONVENIENCE-FOCUSED. WHAT DOES THAT MEAN? CAN YOU PROVIDE SOME EXAMPLES?
ANDERSEN: At Ingka Centres, we believe in retail experiences for the many. That means we provide retail experiences that are accessible to everyone of all ages and economic status – and that encourage people to come together and use our meeting places to strengthen their communities. For example, in China, our Livat meeting places have hosted over 150 events focused on responsible living for local communities. At Livat Shanghai, the meeting place has nearly 10,000 sq m of public spaces, including Breezing Terrace, Scandi Village, and Treehouse playground, which are specifically designed to create a communityfocused, immersive environment.
Our commitment to building communities is driven at a global level. We’re always curious about what our visitors want from their community hubs so we can adapt our meeting places in the right way. We’ve created a “Life in Communities” report, which helps us understand what our communities need and want, thereby enabling us to tailor our offers and help them thrive and come together.
Such insight – combined with on-the-ground conversations with local communities through our Ingka x Neighborhoods approach – form an invaluable part of our process when designing or evolving one of our meeting places. We’re always looking at how we bring more value to our local communities.
ACROSS: WHAT DOES INGKA CENTRES’ INTEREST LIE IN ITS HOME MARKET OF EUROPE?
ANDERSEN: While we are a global business, Europe is where it all began for us. With recent acquisitions in Brighton and Paris, and a signed agreement to acquire Pasing Arcaden in Munich, we are proud to have 25 meeting places across the region – soon to be 26.
Europe also gives us a great opportunity to explore and to introduce new ideas. For example, we first launched Circuit – a curated community hub for visitors to learn how to repair, reuse, rent, and recycle all kinds of products – at our Birsta City meeting place in Sweden. We also launched Step Store – an innovative pop-up retail space that allows visitors to swap their daily steps for health-focused products, discounts at local stores, or charity donations – across Europe in 2023.
We’re constantly looking for new opportunities across Europe, as we look to strengthen our existing portfolio in the region alongside further growth in Asia and the US.
ACROSS: EUROPE IS CURRENTLY CONSIDERED PARTICULARLY CHALLENGING. WHAT CHALLENGES DO YOU SEE IN THE EUROPEAN MARKET? HOW IS INGKA CENTRES RESPONDING TO THOSE CHALLENGES?
ANDERSEN: We remain optimistic about the European market and are focused on expanding our portfolio in the region. Our recent acquisitions in Brighton and Paris, along with our signed agreement to acquire Pasing Arcaden in Munich, reflect our commitment to bringing vibrant retail destinations into the Ingka Centres family. We believe in the potential of Europe and look forward to exploring new opportunities that align with our vision.
ACROSS: WHAT’S GOING WELL IN INDIA, ASIA, AND THE US? WHAT CAN YOUR EUROPEAN ASSETS LEARN FROM YOUR INTERNATIONAL PROJECTS AND LOCATIONS?
ANDERSEN: The beauty of our global portfolio lies in the diverse forms, shapes, and sizes of our meeting places. Each location brings its own brilliance, contributing to our overall success.
As a global company, we benefit from the ability to try various aspects of our concept at one meeting place before introducing them elsewhere. For instance, in San Francisco, we launched Saluhall earlier this year – a unique culinary experience featuring local vendors and a Scandinavian-themed bakery and café, a concept which was developed for us by renowned chef Claus Meyer. He also developed a cookery school at Saluhall, focusing on community engagement and positive change.
So far, Saluhall has attracted over 300,000 visitors – 100% above our initial forecast. It has been a game changer for our San Francisco Meeting Place, consistently drawing 50,000 to 60,000 visitors each month. This success could inspire us to replicate similar concepts at other meeting places across our global portfolio.
ACROSS: WITH THE PASING ARCADEN, YOU’VE PURCHASED A RATHER SMALL, BUT MORE CITY CENTER-ORIENTED LOCATION. IS YOUR STRATEGY TO FOCUS MORE ON ACQUIRING URBAN LOCATIONS WITH SMALLER FORMATS? WHAT WAS THE GENERAL IDEA BEHIND THAT ACQUISITION?
ANDERSEN: Pasing Arcaden is one of Munich’s most vibrant, popular shopping centers and marks a flagship re-entry for Ingka Centres into Germany.
Strategically, its location couldn’t be better. In recent years, Pasing has seen tremendous development and residential densification, which has seen its purchasing power soar. Pasing Arcaden is situated directly adjacent to its local station – the third busiest railway hub in Bavaria, servicing 85,000 commuters per day – which means it’s within a 30-minute journey for 1.9 million people.
Pasing Arcaden is an iconic name that is steeped in retail success. It has 13 years of successful retail history, with 96% occupancy and EUR 4,700 per sq m of sales. It is the perfect foundation for Ingka Centres to build on through the gradual introduction of our concept, which we believe will bring exciting value to Munich and the local Pasing community.
ACROSS: WHAT ARE YOUR PLANS FOR PASING ARCADEN?
ANDERSEN: The asset has been very well managed since it was opened by URW. Immediate plans will be focused on continuing the high standard of operations and strengthening the existing asset. That will also enable us to build on strong existing relationships between the current management and the local community, before gradually transitioning to our Ingka x Neighborhoods approach.
Our purchase agreement includes all of the relevant tenant contracts. The scheme will, therefore, continue to operate as it did previously, just under new ownership. Post acquisition, we will engage with all tenants on site and see how we can further strengthen our relationships and how we can co-create to establish an even more attractive meeting place with our tenant partners.
ACROSS: WHAT DO YOU EXPECT FOR THE RETAIL REAL ESTATE SECTOR IN 2025? WHAT ARE THE BIG TOPICS ON INGKA CENTRES’ AGENDA?
ANDERSEN: The future of physical retail is about meeting people where they are and being a valued part of their everyday lives. With respect to the upcoming years, we look forward to exploring how we can further develop our meeting places to become more than just places for shopping, but places for living.
Our approach to driving growth in different regions reflects the unique market dynamics and consumer behaviors in those areas. In Europe, acquisitions have allowed us to refresh and redefine retail spaces. In India and China, the recent new developments have enabled us to tailor our offering to emerging and dynamic consumer trends. This tailored strategy ensures that we leverage local insights to meet community needs effectively. We’ve made great progress in 2024 and expect our growth to accelerate in 2025.
Cindy Andersen
Cindy Andersen is the Managing Director of Ingka Centres.
