June 2024: Investment Updates

The latest investment updates are set out below with all projects progressing steadily.

As an overview, residential projects/investments in southeast Queensland, South Australia and Western Australia continue to benefit from relatively strong markets being driven by population growth and affordability advantages compared with Melbourne and Sydney. Likewise major regional markets in Victoria and New South Wales are benefiting from affordability differences when compared to their capital city counterparts.

Conditions in the Industrial sector generally remain sound with an ongoing underlying shortage of land; as well as the Social (health and childcare) sector where significant government support underpins occupiers.

View Updates:

Banks, ACT

The facility has been extended for a further 6-month term to provide the Borrower with additional time to complete the refinance.

Oakleigh, VIC

Construction continues to progress in line with expectations. The bulk of the work during the month has been focused on completion of the slab on Levels 1 and 2 and installation of the precast wall panels.

Morwell, VIC (Mezzanine)

Mernda
All project settlements have occurred.

Tatura

Stage 1 has achieved practical completion and works for Stage 2 are underway. Sales remain strong, with the Borrower securing 96 presales out of 113 available lots in Stages 1 and 2. A Section 173 agreement has now been approved and signed with VicRoads in June 24.

Morwell
The Borrower is progressing with the commencement of bulk earthworks for Stages 1, 2, and 3 at Morwell, having appointed a highly regarded civil contractor. Sales are strong with 35 presales achieved in Stage 1.

Ballarat North, VIC

The facility has been successfully refinanced with ARK and extended for a further 24 months.

The gazettal of the Ballarat North PSP is anticipated to occur in mid to late 2025. The Borrower continues to work through the planning process. Finalisation of the Ballarat North PSP is expected in late 2025.

Mount Cottrell, VIC

The facility has now been refinanced into a new 12-month facility secured against the two remaining properties.

Leakes Road, VIC

The facility has been refinanced into a new 15-month facility. The property has been sold with settlement scheduled for September 2026 which should facilitate a straightforward refinance from ARK or an alternative lender on or prior to maturity to align with the settlement date of the incoming purchaser.

Gungahlin, ACT

The Borrower continues to explore an alternative development plan for the project as a result of the favourable rezoning of the area where the property is located. Initial drafts of the redesigned plan show an increase of over 500 apartments from the current 283.

It is likely that the facility will be refinanced into another land facility at maturity which is also expected to be provided by ARK.

Burpengary, QLD

The Borrower expects plan sealing to be issued from council imminently with titles to be issued shortly thereafter. The contracts call for a 14-day settlement from notice of title registration and settlements are expected to commence early next month.

The facility has achieved 100% debt coverage.

Baldivis, WA

ARK continues to monitor the construction programme following delays earlier this year.

Further preliminary works have commenced on site including the following:
– Excavation of perimeter footings undertaken.
– Under slab drainage mobilised.

Sellicks Beach, SA

The land facility has now been refinanced into a construction facility.

To date, 13 of the 42 residential lots within the project have been presold with a further 3 on hold. Heightened interest is expected to be received as construction progresses.

North Melbourne, VIC

Further sales have been achieved within the project. An additional sales agency has been appointed and several local agents have engaged to capitalise on the considerable interest that has been received.

The Borrower has commenced discussions with alternative builders given that a construction contract is yet to be executed with the original preferred builder. If this cannot be achieved the property will be sold unless the Borrower obtains a refinance facility to repay the 1st and 2nd mortgage facilities.

Mont Albert, VIC

Following a strategic review of the group’s asset portfolio, the Borrower has elected to place the security property on market for sale. The property is being listed on leading platforms such as REA and several parties have already expressed interest.

Toowoomba, QLD

Works are nearing practical completion on site which is forecast for July 2024.

Works are complete almost complete with the contractor demobilising off site:

– Electrical road crossings complete with NBN pits installed.
– Turfing is well progressed with significant landscaping progress being made.

Box Hill, VIC

The Borrower remains focused on fully leasing the initial phase of the project as the top priority.

Approval of the planning permit for the development is expected to be received within the following month.

Newport, NSW

The project continues to receive interest with the largest allotment within the project on a agreed sale price of $12 million, which is 14% higher than the valuation. Formal execution of the sales contract is imminent.

The hard launch of the marketing campaign in May received a very positive response, attracting further interest and publicity.

Majority of demolition and site clearing is complete, with the commencement of earthworks anticipated by July 2024.

Discussions continue with several interested buyers, who have made significant headway in the design for potential builds post settlement of the land.

Gawler East, SA

The refinance of the land facility into a construction facility is well advanced and is expected to occur imminently.

Further sales continue to be achieved, further underpinning the project fundamentals.

Deception Bay, QLD

Works continue to progress well onsite.

Key milestones achieved since the previous update are:
– Earthworks and walls complete.
– Road subbase level was achieved, with seal and asphalt to commence.
– Stormwater reticulation was advanced and sewer reticulation works were well advanced.
– Water reticulation was progressing well.
– Works & maintenance bond figures to be provided to Council for approval.

Sales and marketing response has been positive with 29 contracts executed of which 16 are unconditional contracts.

Munno Para, SA

The Borrower is currently collaborating with the council to finalise the planning permit for the upcoming land subdivision, expected to be issued in late July. This will enable the Borrower to launch a sales campaign which should benefit from the SA government’s recent removal of stamp duty for first home buyers on all new builds.

Morayfield, QLD

Progress of works on site since the previous month include:
– Bulk earthworks are largely complete.
– Internal roadway largely complete with asphalt laid.
– Kerb and channelling works are complete.
– Stormwater drainage is largely complete with civil trenching and backfill complete.

Shepparton North, VIC

Since financial close of the facility, works have progressed well on site. Earthworks are now complete whilst sewer works and wetland construction have commenced.

Bracken Ridge, QLD

Works have progressed well since financial close of the facility which include:
– Bulk earthworks nearing completion.
– Installation of retaining walls progressing well.
– Stormwater and sewer mains works being well advanced.
– Boxing of roads commencing.