The $17 million project will consist of six levels, including a new basement located where Fallon’s wine cellar once stored thousands of bottles and vats.

Hansen Yuncken site manager Anthony Robinson said excavations had unearthed some old bottles that had apparently been thrown into a pit long ago.

“They were empty,’’ he laughed.

Quest will provide 59 serviced apartments on four levels, and will be aimed particularly at corporate travellers who want a central location.

A cafe and two shops will front Kiewa Street, with a car park located at ground level behind them.

The basement will contain a gymnasium and conference room.

About 20 tradesmen are working on the project but numbers will increase when the fit-out begins.

Mr Robinson said 17 slabs made at Shepparton would be installed this week by Dunns Crane and Access Hire.

“The main structure of the building will be finished by mid to late March,’’ he said.

Quest chairman Paul Constantinou said when he began the project in July he hoped to see the accommodation opened in September, 2008.

He paid Albury council $1.2 million for the site.

It is not intended to sell the apartments.