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Ingka Centres recently entered into a co-ownership agreement with Chinese investment firm GoHigh Capital for three properties in China. This partnership enables the Swedish shopping center operator to access new growth capital within the rapidly changing local retail market, all while continuing to manage their “meeting places,” according to a senior executive responsible for global operations.
“Investment and divestment are integral parts of our strategy, and this is quite common in the commercial real estate sector. We develop assets and, after a certain period, release capital to fund further expansion,” the executive explained during an exclusive interview at the company’s Livat Shanghai shopping complex.
Under this partnership, Ingka Centres will collaborate with GoHigh to establish a real estate fund that will jointly own three of its longstanding Livat community hubs in Wuxi, Beijing, and Wuhan, with an expected closing date of December 12, 2025. The firm will retain ownership and continue operations of these locations under the Livat brand, emphasizing continued management and service delivery.
“This is the first time we’ve implemented such an arrangement because we see two key benefits,” the executive noted. “Firstly, we will keep ownership and management of these meeting places, ensuring a seamless experience for our partners and customers — nothing will change in that respect. Secondly, like many companies, we’re exploring ways to unlock capital that can be reinvested into growth opportunities. This setup allows us to do both, creating a win-win situation.”
The executive added, “Through this strategic move, we can support ongoing local business development and better leverage the expertise we’ve accumulated. We also see potential new opportunities this approach could generate in the future.”
While the deal is still awaiting approval from relevant Chinese authorities, confidence remains high that the process is progressing smoothly. When asked if other properties in China might adopt a similar model, the executive responded, “It’s too early to draw conclusions. Our priority now is to succeed with this current initiative.”
He emphasized, “Success builds gradually. We want to keep our focus sharp, especially in the Chinese market, where spreading efforts too thin can be detrimental. Concentration and clarity are vital.”
In addition to financial considerations, China’s role as an innovation hub attracts interest. The executive highlighted China’s importance in testing new concepts and blending online and offline customer experiences.
“For example, the Pippi Longstocking campaign at ten Livat malls celebrated the 80th anniversary of the Swedish character and the 75th anniversary of China-Sweden diplomatic relations, engaging customers at a very high level,” he said. “The enthusiasm and participation we’ve seen have been remarkable.”
Recent changes in tenant mix also reflect China’s status as a testing ground for new retail concepts. Last year, nearly 220 first-to-market stores opened across cities and regions, accounting for about one-third of all new tenants. The focus is on small, emotionally driven purchases, such as toys and collectibles, which customers prefer to buy in person, the executive explained. These successful concepts are being integrated into community spaces.
The meeting place model itself signifies a shift away from traditional landlord-tenant relationships. “We consider our tenants as partners. We collaborate closely with them to develop mutually beneficial solutions that serve both their interests and ours,” he said.
In a broader context, the partnership with GoHigh comes as international retailers recalibrate their strategies in China amid slowing consumer spending and rising competition. Market dynamics now demand more strategic focus and differentiation. “It’s no longer just about expansion; it’s about making meaningful distinctions that drive success in the future,” the executive noted.
Contrary to some beliefs, physical retail remains vital. “Post-pandemic, visitation rates have actually increased. People still want to socialize, interact, and gather physically,” he explained. Digital brands recognize the value of a physical presence, too, as it often proves more cost-effective for acquiring new customers and creating emotional bonds than online channels.
In the last fiscal year, the company achieved a 97% occupancy rate across its ten Chinese properties, attracting over 140 million visitors—a 5% rise from the previous year. Livat Beijing set a new record with nearly 260,000 visitors on New Year’s Eve. “People choose their favorite places—those that offer value, community, and a sense of belonging,” he said.
Over the past 16 years, the company has invested more than 27 billion Chinese yuan (approximately 3.9 billion USD) in developing ten Livat shopping centers and three office projects across China, reinforcing its commitment to the market.
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