Diploma eyes $16m Freo hotel deal

Diploma Group has lined up a $16 million contract to build Sirona Capital's proposed Quest serviced apartment development in Fremantle.

The company has signed a binding heads of agreement with Sirona for construction of the project, and will work exclusively with architects Bollig Design Group to achieve the targeted construction price before entering into a formal contract.

Diploma expects to commence forward works at the project in September, with project completion targeted for March 2016.

The Perth-based builder has been awarded several contracts for the construction of Quest serviced apartment developments in recent years, most recently securing an $11 million contract last month to build 71 studio apartments at the proposed Quest on Mounts Bay development near Kings Park. 

Sirona yesterday unveiled details of the planned $30 million Quest Fremantle project at 8 Pakenham Street in the port city's West End.

It has signed a 15-year leasing deal with Quest for the 73-room, 4.5-star proposed development.

Sirona intends to acquire the development site from Luke Saraceni's Westbridge Property Group for $7.2 million, and has extended an offer to wholesale investors to tip in $1.9 million as part of a $10 million syndicate.

The investment group has a substantial presence in the redevelopment of Fremantle.

Sirona is backing the Fremantle council’s $300 million Kings Square redevelopment and is also eyeing opportunities in hotel and hospitality developments.

Its plans include a joint venture agreement with boutique developer Match Group to develop the Heirloom Apartments project at the heritage-listed 'Fort Knox' building on Freo's Queen Victoria Street.