Frasers signs Diploma for $100m apartments

Singaporean property group Frasers has moved to the second phase of its Queens Riverside development in East Perth, with the formal appointment of Diploma Construction to build its ‘Qlll’ apartment building.

The $99.7 million contract is for a 26-storey residential tower featuring 265 apartments.

The Qlll apartments will follow the $107 million construction of a new hotel on the site, located near the Causeway on Adelaide Terrace.

The overall Queens Riverside precinct will offer 408 luxury apartments in three buildings and a 236 room all-suites hotel operated under the Frasers Hospitality brand, plus retail and commercial space.

Construction of QIII will commence immediately and is due to be completed in January 2014.

Frasers has reported good progress with apartment sales at Qlll since the formal launch in October last year.

It has sold 125 apartments, achieving $93 million at an average price of $744,000. Top value to date is $3.54 million for a three-bedroom penthouse.

Frasers Property Australia’s chief executive Guy Pahor said Qlll was attracting a wide range of local, interstate and international buyers looking to secure a high quality property off the plan, underpinned by the state’s mining boom.

“We are delighted to take another leap forward in the construction of Queens Riverside and we look forward to working with Diploma Construction to bring this vibrant urban quarter to life,” said Mr Pahor said in a statement.

Queens Riverside will combine residential apartments with commercial and retail suites, a new dining precinct and Fraser Suites Perth.

Mr Pahor said signing the second construction contract for Queens Riverside demonstrated Frasers’ commitment to the Perth market, where there are good opportunities for growth within ‘urban villages’ that combine living, working and leisure.

“We know from the success of our existing mixed-use projects that buyers are looking for high quality designs and genuine amenity, with strong growth potential,” he said.

The concept master plan for Queens Riverside was by Jones Coulter Young Architects. The design of QIII was by Perth architect Bruce Robinson, who was also responsible for the design of the Raffles redevelopment at Perth’s Canning Bridge.

Diploma Construction managing director John Norup said the first tower, which will be the largest hotel built in Perth in the past decade, was on track to be completed in June 2012.

He said the value of contract awards in FY12 was $188 million.

Meanwhile, Diploma said it expects the vast majority of apartments in its Eleven78 development in West Perth to settle by the end of January.

This would allow Diploma to retire $45 million of project specific debt.

It achieved practical completion just before Christmas.