FREMANTLE council has granted Sirona Capital a six-month extension to keep alive a deal to redevelop Kings Square.

The developer was coming up against a sunset clause which would allow the council to back out and seek other development partners, but has been given time to finalise lease negotiations with the WA housing department.

Housing is regarded as a key anchor tenant crucial to the success of the $220 million redevelopment, which revolves around the council selling Sirona five properties in return for developing the square.

The Chook understands that Sirona and the state government have signed a heads of agreement.

The council had said unless proof of a looming deal could be shown by November 9, the deal could have fallen through.

Sirona managing director Matthew McNeilly was in the council chamber for the vote.

The extension pushes the sunset date out to May 9 next year.

by STEPHEN POLLOCK