iFLY Adelaide, The Fourth Indoor Skydiving Facility
Adelaide, Dec 4, 2014 AEST (ABN Newswire) - Indoor Skydive Australia Group Limited (
ASX:IDZ) (ISA Group) today announced that it has signed an agreement securing Adelaide, South Australia as the location for it's fourth indoor skydiving facility.
ISA Group has entered into an agreement with Commercial & General Funds Management Pty Ltd (Commercial & General). Commercial & General, as the developer of the Kings Point Shopping and Entertainment Complex, is providing for the development and construction of an indoor skydiving facility at the Complex. Under the terms of the agreement Commercial & General will fund construction of the base building and indoor skydiving facility within the Complex. ISA Group will be responsible for finalising the design and for the ongoing operations of the facility under a lease agreement.
The developer funded model has been adopted to provide the best overall return to ISA Group's shareholders based on a number of criteria including risk profiles and utilisation of capital. Specifically under this model ISA Group foresees minimal requirement to expend shareholder capital to bring this facility into operation. Commercial & General for their part will be entitled to returns linked to the facility's turn over.
The agreement is conditional on: Commercial & General's receipt of financing; necessary planning approvals for the Complex; and ISA Group's approval of the location of the indoor skydiving facility within the final design of the Complex.
The Kings Point Shopping and Entertainment Complex has an initial budget of $180 million and will be located 15 kms from the Adelaide CBD. The Complex will be a new generation shopping, leisure and lifestyle destination, featuring around 64,000 sq.m of retail floor space combined with more than 20,000 sq.m of world class entertainment. iFLY Adelaide will headline leisure providers including cinemas, waterslides, aqua playground, indoor surfing, bowling, and more.
The location will be well connected to Adelaide's public transport system and exposed to a high volume of vehicle traffic. The strong military presence in South Australia and the wider community's passion for sporting events make Adelaide a natural fit for an indoor skydiving facility.
ISA Group anticipates that the facility will comprise a 12ft single return vertical wind tunnel with related merchandise and services. Under the current proposed timelines construction will commence in late 2015 with completion expected in November 2016.
"iFLY Adelaide provides the perfect opportunity for ISA Group to partner with a developer to incorporate indoor skydiving facilities into a broader entertainment complex. This developer funded model demonstrates the flexible way we can approach an opportunity whilst minimising group risk" said Wayne Jones, ISA Group Chief Executive Officer.
About Indoor Skydive Australia Group Ltd
Indoor Skydive Australia Group (
ASX:IDZ) was established on 04 Nov 2011 as the parent company to facilitate a number of indoor skydiving facilities to cross our region in the next 3-5 years. These facilities allowing human flight within a safe environment are currently used by tourists, enthusiasts and military throughout the world including the Australian Military and active Skydivers. Flexible operating hours, low overheads and proven technology are just a few of the highlights that support the company’s business model.
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