28/05/2014 - 15:59

Sirona plans $30m Fremantle Quest hotel

28/05/2014 - 15:59

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Investment group Sirona Capital has expanded its footprint in Fremantle, launching plans to develop a $30 million Quest serviced apartment hotel in the port city's West End.

Sirona plans $30m Fremantle Quest hotel
An artist's impression of Sirona's planned Fremantle Quest development.

Investment group Sirona Capital has expanded its footprint in Fremantle, launching plans to develop a $30 million Quest serviced apartment hotel in the port city's West End.

Sirona intends to acquire a development site at 8 Pakenham Street from Luke Saraceni's Westbridge Property Group for $7.2 million.

The company has signed a 15-year leasing deal with hotel operator Quest for the 73-room, four-and-a-half star proposed development.

The development would include a gym, parking and conference facilities within the building's 1920s heritage facade.

Sirona hopes to appoint a builder to commence construction in December this year, with completion targeted for March 2016.

The company says it has received development approval for the project and has sought construction cost estimates for the project from several builders.

It has estimated the project's development costs at $30.3 million and says the hotel will generate net revenue of $36.5 million.

The company has extended an offer to wholesale investors to tip in $1.9 million as part of a $10 million syndicate.

It has placed the minimum investment at $25,000 and promised a post-construction cash yield of 11 per cent per annum, increasing to 15.7 per cent by the sixth year of the Quest lease.

Sirona has already raised $8.1 million from core investors.

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. 

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