Swedish furniture and homewares giant IKEA is to open its first store in Manhattan after announcing a deal to co-invest on a major development on Fifth Avenue.

The move is just the latest by IKEA in a twin strategy that has seen it switch its focus from out-of-town warehouse type stores to urban centers in Europe, while developing huge mixed use projects in China and India.

It is also a huge boost for Fifth Avenue, which like many famous shopping streets worldwide was left battered and bruised by the pandemic and facing unprecedented levels of vacancies as legacy names exited the retail thoroughfare.

The project is being carried out by Ingka Investments, the investments arm of Ingka Group, which owns the majority of IKEA stores worldwide, which has made the major real estate investment on Fifth Avenue. The investment in 570 Fifth Avenue “marks a significant step in Ingka Group’s long-term strategy to enhance its city center retail presence”, the company said in announcing the deal.