August 2024: Investment Updates

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

In Victoria, Oakleigh construction is progressing in line with expectations, with increased sales expected following the display suite’s completion. SPG’s Tatura project shows strong sales and ongoing settlements, while bulk earthworks continue at Morwell. Ballarat North is expecting PSP amendment by Q4 2024. Mount Cottrell land banking continues while the Oakbank PSP is under consideration, and Leakes Road has been sold with a September 2026 settlement.

In Queensland, Toowoomba is nearing settlement and repayment, Deception Bay is forecast to be repaid early in late September, and Burpengary has settled with construction to commence shortly. Bracken Ridge is progressing well, and Morayfield’s titles are expected to be issued in September with settlements to commence shortly after. Newport in NSW has achieved a significant sale awaiting execution and earthworks are continuing.

In South Australia, Sellicks Beach has achieved additional sales, Gawler East is advancing with strong presales, and Munno Para is finalising planning with a late 2024 sales campaign. Overall, project progress remains strong with robust sales and strategic developments.

View Updates:

Banks, ACT

The borrower continues to work towards the refinance of the facility.

Oakleigh, VIC

Construction works are progressing in line with expectations.

The borrower has achieved several further sales with the contracts to be executed imminently. As construction continues to progress, sales activity is expected to increase. This will be further strengthened by the completion of the display suite unit, allowing potential purchasers to view a finished product.

Morwell, VIC (Mezzanine)

Tatura
Stage 1 has achieved practical completion, and work for Stage 2 is currently underway.

Sales have been robust, with the borrower securing 99 presales out of 113 available lots for both Stages 1 and 2.

Specifically, Stage 1 had 53 presales out of 55 lots, while Stage 2 had 46 presales out of 58 lots. Settlements for Stage 1 are ongoing, with 46 completed in August 2024.

Morwell
Bulk earthworks for Stages 1, 2, and 3 are continuing at Morwell, with a highly regarded civil contractor appointed for the project.

Sales remain strong, with 49 presales achieved across Stages 1 through 3.

Ballarat North, VIC

The Ballarat North PSP amendment to include the Expanded PSP Area containing the property is expected in Q4 2024. Gazettal of the PSP is anticipated to occur in mid to late 2025.

The latest discussions held with the Victorian Planning Authority provide the following updates: If the Ballarat North PSP includes the Expanded PSP Area, amended zoning will be completed in the first half of 2025. The finalization of the Ballarat North PSP is expected by late 2026.

Mount Cottrell, VIC

The borrower will hold the remaining two security properties as a land bank opportunity whilst the Oakbank PSP continues to progress through the due diligence phase. Alternatively, the borrower may consider selling the properties during the facility term.

Leakes Road, VIC

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 has accepted terms for a refinance into a new 12-month land facility. The refinance will be completed on or prior to the maturity date.

Sellicks Beach, SA

An additional 10 sales were achieved during the month, with 25 of the 42 residential lots within the project presold and a further 4 on hold. Increased sales have been achieved through a re-engagement of marketing channels. Real estate agents continue to conduct monthly Saturday open days which have been attracting around 25-30 people featuring a coffee cart and free food. This is later followed by private inspections by appointment during the week.

Mont Albert, VIC

The borrower has placed the property on market for sale with the sales campaign expected to conclude in mid-September.

Toowoomba, QLD

All construction works have been completed with maintenance inspections by council now complete.

The borrower is expecting to issue notification of upcoming settlement to purchasers in September with settlements estimated to commence in early October.

Box Hill, VIC

The borrower has placed the property on market for sale with the sales campaign expected to conclude in mid-September.

Newport, NSW

The project continues to attract interest, with several interested purchasers advancing through the design phase. The largest allotment within the project has an agreed sale price 14% higher than the valuation. Formal execution of the sales contract is imminent, with plans and designs now finalised.

Demolition and site clearing is complete, with the earthworks now commenced.

Gawler East, SA

ARK successfully refinanced the previous land facility into a construction facility to execute Stages 4-7.

The estate has a strong record of sales activity and has been well received within the Gawler market. Stages 1-3 have been fully sold whilst there are currently 180 presales within Stages 4-7, representing over 80% of available lots sold.

Works continue to progress across Stage 4 of the project.

Deception Bay, QLD

The civil works have been completed.

Titles have now been registered with settlement of 34 salesto commence 20th September with the loan fully repaid by this date.

Munno Para, SA

The borrower is finalising discussions with council on the adjustment to the planning scheme. Development approval is now expected by the end of September. This will allow the borrower to initiate a sales campaign in the final quarter of 2024, which is expected to generate interest in the estate before construction commences in 2025.

Morayfield, QLD

Works have now been completed and titles are expected to be issued in early September. Settlements are anticipated to commence shortly after titles have been issued.

Shepparton North, VIC

The contractor has made significant advancements during the month. Sewer works have been completed, construction of the wetland is approximately 80% complete and civil works are ongoing.

Sales momentum remains strong and the borrower has now satisfied the first presales milestones several months ahead of the deadline.

Bracken Ridge, QLD

Works on site continued to progress during the month, including the completion of the road,
near-completion of the kerbs, and the commencement of footpaths. The installation of retaining walls
has been completed, and stormwater, sewer, and water reticulation works are nearing completion.

Wellington Street, WA

A leading Australian building company has been selected as the preferred contractor, with a highly experienced local firm appointed as the project manager.

Unilodge, Australia’s leading purpose-built student accommodation (PBSA) operator, is the preferred operator for the finished project.

Burpengary, QLD

ARK reached financial close on the facility during the month.