27/11/2015 - 10:10

Diploma to build Burswood apartments

27/11/2015 - 10:10

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Diploma Group has won a $52 million contract to build the Riverwood Apartments in Burswood, with work already underway.

Diploma to build Burswood apartments
An artist's impression of the new Riverwood Apartments in Burswood.

Diploma Group has won a $52 million contract to build the Riverwood Apartments in Burswood on behalf of a Singaporean developer.

The 18-storey, 156-apartment  project, located at 47 Burswood Road, was designed by Doepel Marsh Architects on behalf of the landowner, Fisel Pty Ltd.

According to Australian Securities and Investments Commission documents, Fisel is 100 per cent owned by Singaporean scaffolding manufacturer and contractor Protex Industrial, while the Riverwood Apartments appears to be the company’s first foray into apartment development in Perth.

But it’s been a two-year battle for the project to come to fruition, after being approved in August 2013.

Metropolitan central development assessment panel documents show the developer requested an extension to its approval in September 2014, saying the state’s economic slowdown and an increased supply of apartments in Perth was hindering it from achieving the necessary presales to finance the project.

The project’s design was amended in June this year, while at the same time the developer requested another extension to its approval, to August 2016.

The appointment of Diploma as its construction contractor indicates the necessary pre-sales have been achieved, and work is under way with the development expected to be completed by late 2017.

Diploma chairman Nick Di Latte said it was pleasing to have secured an important contract like this one leading into December, with the company's order book now exceeding $130 million worth of work to be completed over the next 18 months.

“It provides a great opportunity for the business to commence 2016 with, in the context of what is quite a tight construction market for quality projects,” he said.

It follows news last week that Diploma had appointed former Doric and John Holland manager Adam Harry as its new chief operating officer and head of construction.

Diploma shares were 13.3 per cent higher to 1.7 cents each at 10am.

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