The former Bathurst Squash Centre, on the corner of Havannah and Howick streets, will make way for a 76-room boarding house and five-lot strata subdivision.

Windsor-based Reece Projects is behind the $6.5 million development.

Company chief Rob Reece, who was supervising the demolition, said the building should be gone by week’s end.

“From there we move on to the next stage, which is a major sewer extension of about 100 metres from the centre of Howick Street to the site,” Mr Reece said.

“Then we will be putting in pipes to take the water from the Charlotte Vale Creek before starting on the slabs. 

“That should be more towards the end of the month, though.”

Mr Reece said he has given 95 per cent of the contract work to local tradies, and the old bricks and steel will be recycled.

He hopes to have the 48-room stage one of the development finished by late November in time for the start of the 2014 university year.

Stage two will add 28 rooms.

“We are working on having a 95 per cent occupancy rate when we open,” Mr Reece said. “We went for this type of development after doing some homework. Our reading of the local market was that there was a demand for accommodation of this type.

“The uni supplies about 1500 beds for first years (students), but there seemed to be a shortage for second and third year students.

“After the first year they tend to move to town and end up in a house, which can sometimes be detrimental to the neighbours.”