IKEA close to start building its second store in Bucharest

The construction work at the second IKEA store in Bucharest could start next month, said Sorin Greu, the general director of Bog'art, the company that will build the unit. IKEA recently selected Bog'art from 19pre-qualified construction companies, after four rounds of negotiations. Meanwhile, IKEA representatives say they hope to finish the new store by end-2018. As soon as it receives two pending authorizations from local authorities, the retailer will submit all papers to receive the construction permit, and finally start construction work. The new store, called IKEA Pallady, will be the largest in the region, with a built area of 36,000 sqm. It will be located on a 13.7-ha plot on the Pallady Boulevard, in Eastern Bucharest. Ikea acquired the piece of land from the investment fund Broad­hurst Investments. The Swedish retailer currently runs a store in Northern Bucharest, with an area of 26,000 sqm, and about three million people visit it every year. Romanian investor Gabriel Popoviciu, who was recently sentenced to seven years in prison in a fraud and corruption case, but was released on bail, opened the IKEA store in Bucharest in 2007 via a franchise system. Swedish group IKEA bought the Ikea operations in Romania in 2011 with EUR 30 million. IKEA’s business in Romania reaches EUR 123 million IKEA plans EUR 500 mln investments to open more stores in Romania editor@romania-insider.com