Shikun u’Binui to help build third IKEA Israel store

IKEA Israel intends to build its third store at the Kiryat Ata Junction, north of Haifa.

By MICHAL MARGALIT / GLOBES
December 27, 2011 23:50
2 minute read.
IKEA's second Israel branch in Rishon Lezion has a

ikea restaurant 311. (photo credit: Ron Friedman)

IKEA Israel intends to build its third store at the Kiryat Ata Junction, north of Haifa. Shikun u’Binui Holdings Ltd., controlled by Shari Arison, sold 50 percent of a lot it owns to IKEA Israel, owned by Matthew Bronfman, for NIS 55 million, and the two companies will jointly build the 24,000-squaremeter store at an investment of NIS 600m.

In February 2010, Globes reported that IKEA Israel was in talks to build its third store. IKEA Israel has one store in Rishon Lezion and will soon reopen its Netanya store, which burned down in early 2010. Shikun u’Binui’s lot at the Kiryat Ata Junction covers 97 dunams behind the Big Shopping Centers (2004) Ltd. mall.

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Construction of the third IKEA store and a shopping center, gas station and parking lot will employ 1,000 people. IKEA Israel will rent the building from Shikun u’Binui for 24 years. The store is scheduled to open in 2014.

IKEA Israel chairman Ron Hadassi said: “The decision to open the third store at the Kiryat Ata Junction is an important part of IKEA’s deployment in Israel. The Kiryat Ata store will open 11 years after the opening of the first store in Netanya and two years after the opening of the store in Rishon Lezion and the reopening of the Netanya store in March 2012. I have no doubt that like the Netanya and Rishon Lezion stores, IKEA’s launch in the North will boost the entire area and create many jobs for local residents.”

Shikun u’Binui CEO Tamir Dagan said: “We are pleased to link with IKEA to build a shopping center that will bring good news to residents of the North.

Our experience in development and redevelopment of commercial centers and IKEA’s rich experience in creating value for its consumers will make the new center a thriving business and a commercial and economic center for local residents.”


IKEA Israel chairman Ron Hadassi said: “The decision to open the third store at the Kiryat Ata Junction is an important part of IKEA’s deployment in Israel. The Kiryat Ata store will open 11 years after the opening of the first store in Netanya and two years after the opening of the store in Rishon Lezion and the reopening of the Netanya store in March 2012. I have no doubt that like the Netanya and Rishon Lezion stores, IKEA’s launch in the North will boost the entire area and create many jobs for local residents.”

Shikun u’Binui CEO Tamir Dagan said: “We are pleased to link with IKEA to build a shopping center that will bring good news to residents of the North.

Our experience in development and redevelopment of commercial centers and IKEA’s rich experience in creating value for its consumers will make the new center a thriving business and a commercial and economic center for local residents.”


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