Circular Quay soon to put on a new face...

Valad, which is the subject of a takeover offer by the US property group Blackstone, said in its March quarter update on Thursday that the Sydney Local Environment Plan 2005 (Amendment No. 2), which was previously approved by the Sydney City Council, has been gazetted by the government.

''This enables Valad to pursue development approval for the redevelopment of Goldfields House,'' Valad's acting chief executive, Clem Salwin, said last week.

Valad originally lodged plans to include a 191-metre tall apartment block and adjoining retail and office complex. The nearby Australia Square is 170 metres.

But after wrangling with City of Sydney Council, the development approval was halted.

Despite the takeover attempt by Blackstone, internal management changes and large debt levels, Valad has been targeting Asian investors over the past year in its marketing of the apartments, which will have harbour views.

Property agents say the value of apartments in and around Circular Quay is upwards of $34,000 a square metre. Apartments overlooking the Opera House have sold for as much as $10 million.

Goldfields House is one of the oldest buildings on the Quay.