Ingka Investments, the investment arm of Ingka Group that owns the majority of Ikea stores worldwide, announced it is taking a one-third stake in a Class-A retail and office tower being developed by Extell Development Co. on Fifth Ave., in addition to preferred equity, according to details published in the Financial Times. Extell will own the remaining two-thirds.

With the project on the drawing boards for decades, Extell had been searching for an investment partner for its new tower, Bloomberg reports. "We came up with Ikea, and they are very interested, of course, in getting a large retail space in the heart of the city," founder and chairman Gary Barnett told the publication.

The building, the largest development on Fifth Avenue in more than 60 years, is scheduled for tenant delivery in 2028 with construction not yet started.  Located at the intersection of the Plaza and Grand Central Districts, 570 Fifth Ave. will be a 1 million-square-foot mixed-use commercial building. A new Ikea customer meeting point will be located in the building's retail space of 80,000 square feet arranged over two large cellar levels with a corner entrance on Fifth Avenue. Ikea will have full ownership of that space.