PRESS RELEASE 11 May, 2009 VALAD ANNOUNCES DA APPROVAL RECEIVED FOR SIGNIFICANT IKEA DEVLOPMENT IN TEMPE SYDNEY: Valad Property Group (ASX:VPG) announces that development approval has been received from the NSW Department of Planning for a flagship IKEA store in Tempe on land owned by two of its managed Funds, ICA Property Development Funds No. 4 and 5. The Tempe project involves the amalgamation of 5 sites of approximately 10 hectares including the former Tempe tip and ATECO site, and securing development approval for a flagship IKEA store. Now that this has been achieved the site will be on-sold to IKEA, who will undertake construction. Valad has agreed the terms for a sale of the site to IKEA and with the receipt of development approval the sales process is now being finalised. Valad understands that IKEA intends to commence construction immediately with an anticipated opening date in 2011. IKEA plans to develop a 37,000m2 building on the site with showroom, café, warehouse and staff amenities and car parking for 1,775 cars. The development will include the retention and adaptive reuse of facades of the heritage ATECO building for commercial floor space which will form the IKEA headquarters. “We are very pleased to have achieved such a significant milestone for the Tempe project, which will lead to the development of the largest IKEA store in Australia” said Steve Howes, ICA Fund Manager. “This has been a complex transaction that will not only result in a significant re-development of the site but also to a rejuvenation of the area”. The development will benefit the community in a number of ways including: • generating local employment opportunities during construction and operation, • develop a site that has been empty for over 20 years which will act as a catalyst for the regeneration of the surrounding Tempe precinct; • creation of a wider range of shopping alternatives for bulky and homemaker goods for the surrounding population; and • providing a large area of open space and planting for the amenity of shoppers and the local community and improving safety and the look and feel of the area. Valad Property Group – Valad Funds Management Limited (ACN 102 249 294) stapled to Valad Commercial Management Limited (ACN 101 802 046) (AFSL 223339) as responsible entity for the Valad Property Trust (ARSN 102 618 824) 1 PRESS RELEASE Contacts Investors/Analysts/Media Steve Howes ICA Fund Manager Valad Property Group Tel: 61 8257 6770 Mob: 0438 155 525 Vivienne Bower Corporate Affairs Valad Property Group Tel: 61 2 8257 6724 Mob: 0431 487 025
VPG Price at posting:
9.3¢ Sentiment: Hold Disclosure: Held
(20min delay)