Diploma secures $66m contracts

Diploma Group has been awarded three contracts worth a total of $66 million for the construction of residential and commercial developments in the Perth metropolitan area.

The company has signed a binding heads of agremeent to build 109 apartments at the Marina Edge development in Port Coogee for a subsidiary of local developer TRG Properties, in a deal worth $38 million.

It is the second contract between Diploma and TRG Properties in the Port Coogee precinct, following the award of a $35 million contract for the Ocean Edge development.

The heads of agreement is subject to sufficient presales being secured, with construction set to begin in October this year and conclude in mid-2016.

Diploma has meanwhile signed a letter of intent for a $17 million contract to build the Precinct on Ogilvie mixed-use development in Mount Pleasant for privately-owned development company Norup + Wilson.

The $40 million development will comprise 34 luxury apartments over seven storeys, with two levels of commercial and retail premises on the bottom two floors.

A formal contract is expected to be signed in coming weeks, with Diploma due to commence on site next month and completion targeted for mid-2015.

Diploma will also build 71 studio apartments at Quest Group's Quest on Mounts Bay development near Kings Park for $11 million.

The company will commence on site next week, with completion due next year.

Diploma shares were trading more than 6 per cent higher at 3.4 cents at 9:50am WST.