An Bord Pleanála has given the green light to a €40 million extension of The Square shopping centre in Tallaght, a development that is being supported by the National Asset Management Agency.

Permission was granted to Indego, which owns about 70 per cent of the units at The Square, following an appeal by Dunnes Stores in April.

Indego had earlier received planning approval from South Dublin County Council. This company was associated with solicitor and property developer Noel Smyth, who resigned from the board in June 2013.

Loans associated with The Square were transferred to Nama, giving the agency a major role in its future.

The project will create about 300 jobs during construction, which is slated to begin in spring 2017. It will add about 200,000sq ft of retail space, creating 400 jobs. A multi-storey car park over six levels with 832 spaces is also planned. Indego is now expected to seek out tenants for the extension, with a focus on fashion retailers.

Nama is believed to have spent about €20 million to get the project to this point. This included the acquisition of a 16- acre site around The Square from the county council.

It also funded the purchase of certain units within The Square and the preparation and lodgment of the planning application for the retail extension.

The Irish Times reported this week that the company which runs The Square returned to the black last year after Mr Smyth waived €4.56 million in fees that were owed to him.

Latest accounts for The Square Management Ltd, whose debts were transferred to Nama, show it made a profit of €3.7 million in the year to the end of September 2013 compared with a loss of €2.3 million in the previous 12 months.