IKEA plans to invest $1 billion into what will become its biggest Russian mall yet, a Moscow region official said Wednesday, Reuters reported.
The Swedish retailer plans to build a 50-hectare shopping center in Mytishchi, just north of Moscow, that will be its largest mall in Europe and one of the largest in the world, the official said.
The company plans to start construction next year and finish in 2013.
IKEA confirmed in an e-mailed statement that the company was doing preparatory work on a possible mall near Mytishchi but said it was "too early to talk about specific project parameters or investment volumes."
IKEA owns 13 stores and Mega malls in Russia.
A Mega shopping center in Mytishchi would be its fourth in the Moscow region. Currently there are stores in Khimki, northwest of the city; Tyoply Stan, southwest of the city; and Belaya Dacha, southeast of the city.
IKEA also said Wednesday that it would open a Mega mall and an IKEA store in Ufa in fall 2010. The company invested about 4.5 billion rubles ($155 million) into the project, which had been scheduled to open in 2008 but was delayed because of problems with its subcontractor and labor permits.
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