The Swedish furniture maker Ikea has recently launched a new property development branch called LandProp Services to build neighborhoods. The company kicks off this effort with a 11-hectare development in East London called Strand East that isn’t far from the 2012 Olympics site. The site is to have 1,200 homes and apartments, with office, retail and hotel rooms, and underground parking with car-less streets, and all at an affordable price.
Central to the affordability picture is that Ikea will retain full ownership of the neighborhood in an all-rental arrangement that is common in Sweden. The company looks to a long-term 10-20 year return on investment, with close management of the retail mix and community activities to make a livable and controlled community.
Read more about this development in this story from the Globe and Mail.