The memorandum of understanding for a EUR 80m investment was signed in Ljubljana on Friday by Mayor Zoran Janković and IKEA director for real estate and development for SE Europe Vladislav Lalić.

According to Lalić, the memorandum "confirms our serious intentions" in the partnership with Ljubljana in resolving all issues related to the project, including the construction of infrastructure, changing spatial plans and obtaining necessary permits.

"The signing of the memorandum is another step towards realising the final goal, which is to open our shop in Slovenia," Lalić said about the project that is expected to bring around 300 jobs.

Janković meanwhile said that the document is a guarantee that IKEA is very serious about the project, adding that the company's executive committee will vote on the project at its next meeting in mid-2015.

The Ljubljana authorities will meanwhile present a spatial plan for the project in January.

Janković said that the selected location will bring benefit not only for IKEA, but also for the BTC shopping district. He is convinced that IKEA will have "the best result per square metre in this region" there.

The mayor also expressed hope that the project will bring work for contractors from the region, and that IKEA would become a sponsor or donor in Ljubljana in the fields of sport, social affairs and culture.

"What is even more important is that this is an example for other foreign investors that it pays to come to Ljubljana, that it pays to make greenfield investments," Janković stressed.

Lalić did not want to talk about a timetable for the project, but used Croatia's Zagreb as an example. IKEA brought a land plot there at the end of 2008, but started building the recently-opened shop only in August 2013.

Janković was more optimistic about the schedule, saying that the municipality will prepare all necessary documents next year so that "we could open this centre together in 2017".

IKEA is interested in a 84,000 square metre plot adjacent to the Crystal Palace office tower in BTC in ownership of insurer Zavarovalnica Triglav, which is reportedly worth between EUR 19.3m and EUR 22.7m.

The insurer confirmed today that it is in talks with IKEA, while Lalić explained that a contract with the owner is being sorted out as an agreement has already been reached. He expects the deal to be finalised "very soon".

IKEA's arrival to Slovenia is also considered as an opportunity for Slovenian suppliers, but Lalić warned that everything will depend on their competitiveness. They will have to compete with other suppliers in the IKEA network, but opportunities certainly exist, he added.

The signing of the memorandum was also welcomed by BTC chairman Jože Mermal. "We are very happy that IKEA is to open its shopping centre right in the heart of BTC City, which is visited by more than 21 million people annually."