Ingka holding, the parent company of Swedish furniture and home-furnishings giant Ikea on Thursday announced it will build a shopping mall in Shanghai at a cost of 8 million yuan ($1.16 billion), it's biggest investment yet, state owned newspaper China Daily reported.

The project, set to operate under Ikea's mega-mall brand Livat, will be spread over an area of 430,000 square meters (around 106 acres) and is expected to start operations by 2022.

Apart from Ikea furniture, the mall will also host shops of 300 national and international brands dealing in sports, education, entertainment and food.

Around 60,000 square meters of the area will be converted into office spaces.

According to Ikea estimates, around 3,000 people will be employed at the facility, making it the second biggest premises of the company in terms of employees, only behind its headquarters in Sweden.

Livat has already completed three projects in China in the cities of Beijing, Wuhan and Wuxi, with the total investment of more than 10 billion yuan.

The company is currently operating 26 shared stores across China, including three in Shanghai.