A major $7.5m retail redevelopment in South Perth is promising to breathe new life into the region, following an announcement from franchise brand Quest Apartment Hotels.

The iconic Mends Street Arcade will be home to 90 new serviced Quest apartments, with the redevelopment taking the 1700sqm retail precinct to 7400sqm with 20 retailers set to take up tenancy.

Craig Ryan, Quest Apartment Hotels chief commercial officer said that the area is seeing a developing number of business travellers and tourists, drawn in by the Perth foreshore’s economic growth and construction boom.

“South Perth is one of the state’s fastest growing urban areas with thousands of small and medium sized businesses, government departments, universities and residents calling it home. We are proud to now accommodate extended-stay and relocating business travellers in the area with South Perth’s leading apartment hotel,” Ryan said.

The Mends Street Arcade forms part of the Mends Street Connect South project, a larger retail push from development group Silverleaf, which has committed to improving the areas thriving business and leisure environment.

“Connect South is an exciting major project that will transform the Mends Street precinct and improve public amenity through place activation, wayfinding, access to transport and greater economic opportunity,” Sue Doherty, Mayor for the City of South Perth said.

“The project will create an attractive pedestrian-friendly piazza, improve lighting in the area, and create active and passive spaces for visitors. Additionally, Connect South will build a strong connection between the South Perth Foreshore and Mends Street, creating a gateway to South Perth and the Perth Zoo, improving the visitor experience and reinforcing the links between South Perth, Elizabeth Quay and the Perth Central Business District.”

The redevelopment marks the first time Mends Street Arcade has been updated since it was first built in the 1960s.

Kyle Hammond, Silverleaf Investments asset manager said the goal was to bring an exciting mix of retail and leisure to the growing area.

“South Perth is no stranger to development, with many residential projects currently under construction in the area. However, there has been very little retail development in South Perth,” Hammond said.

“Our vision with the new Mends Street Arcade is to create a fresh, inviting and exciting retail offering.”

A launch event is slated for March 9 from 9am to 11am for locals to come and view the development.