September 2024: Investment Updates

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

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

In Victoria, construction at the The Base – Oakleigh is progressing in line with expectations, with increased sales expected following the display suite’s completion. Sphere Property Group 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, BRC – Tallowood Toowoomba is nearing settlement and repayment, Sunvista Homes project in Deception Bay was repaid late September, and Sunvista Homes project in Burpengary has settled with construction to commence shortly. Sunvista Homes project in Bracken Ridge is progressing well, and Everland’s development in Morayfield titles are expected to be issued in September with settlements to commence shortly after. The Fenbury Newport development in NSW has achieved a significant sale awaiting execution and earthworks are continuing.

In South Australia, Citify Sellicks Beach has achieved additional sales, Wel.co’s project in 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

In addition to the completion of the slab on each level and the installation of the precast panels, several other works were in progress, including the installation of fire services, plumbing rough-ins, electrical rough-ins, structural steel for the roof, and roofing.

Provided that there are no delays, it is expected that the structure of the building will be completed by the end of the year.

Morwell, VIC (Mezzanine)

Tatura
Stage 2 civil works are continuing after the practical completion of Stage 1.

Sales have been strong, with the borrower securing 95 presales out of the 113 available lots across Stages 1 and 2. To date, 46 settlements have been completed from Stage 1.

Morwell
Bulk earthworks for Stages 1, 2, and 3 are ongoing at Morwell, and sales remain strong with 49 presales achieved across these stages.

Ballarat North, VIC

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

The Victorian Planning Authority has advised that if the Ballarat North PSP is included in the Expanded PSP Area, amended zoning will be completed in H1 2025.

Mount Cottrell, VIC

The borrower will retain the two remaining security properties as a land banking opportunity whilst the Oakbank PSP advances through due diligence. The borrower is also exploring the option of selling the properties during the facility term.

Leakes Road, VIC

The property remains under contract with settlement scheduled for September 2026. This will facilitate a straightforward refinance from ARK or an alternative lender on or prior to maturity that will align with the settlement date of the incoming purchaser.

Gungahlin, ACT

Financial close for the refinance into a new 12-month land facility occurred during the month.

Baldivis, WA

The property has been sold and will settle in November, repaying the facility in full.

Sellicks Beach, SA

The project is progressing well with practical completion expected on 28 November 2024. Currently, 28 out of the 42 residential lots have been presold, representing 3 additional sales compared to the previous month.

Mont Albert, VIC

The property has now been sold with settlement scheduled to occur at the end of October which will repay the facility.

Toowoomba, QLD

All construction works are complete and the borrower is centering their efforts on selling the remaining 6 lots.

The borrower has advised that they are expecting a large portion of the facility to be repaid at the end of October through settlements with the balance of the facility to be repaid at the end of November.

Box Hill, VIC

The sales campaign to sell the property continues with no acceptable offers received to date. The sales agent continues to work with interested parties to finalise a sale of the property at an acceptable sale price.

Newport, NSW

Demolition and site clearing is complete and the subdivision civil works have commenced.

Several interested purchasers continue to advance through the design phase.

The largest allotment within the project has an agreed sale price c. 15% above the valuation. Formal execution of the sales contract is imminent, with plans and designs now finalised.

Gawler East, SA

Sales activity has been strong across the estate and has been well received within the Gawler market. From Stages 4-7, there are currently 180 presales , representing over 80% of available lots across those stages.

Civil works continue to progress across Stage 4 of the project.

Munno Para (Smithham Road), SA

There have been some delays in the issuance of planning approval and this is now expected in mid-October.

Post approval, the borrower intends to appoint a civil contractor and to activate the site for construction in the first quarter of 2025.

Morayfield, QLD

There have been delays in the issuance of titles and these are now expected to be issued in October. Settlements are anticipated to commence in early November.

Shepparton North, VIC

Works continue to progress in line with expectations. Advancements achieved during the month include the progression of the wetland construction which is now 95% complete and the continuation of the civil works including kerb and channelling.

Bracken Ridge, QLD

Works on site have continued to progress throughout the month, including the completion of earthworks, internal sewer, water, stormwater, and road works.

The acoustic barriers are 70% complete, internal electrical and gas installations are finished, the external sewer is nearing completion, and the topsoil respread is ongoing.

Wellington Street, WA

A sales campaign is currently in progress to gauge interest in the property, as the borrower evaluates whether to move forward with the sale or proceed with the proposed development.

Burpengary, QLD

Demolition has been completed on site including power abolishment and demolition of the existing dwellings.

The civil construction tender process was run during the month with several highly experienced civil contractors being considered. The contract is expected to be awarded in early October.

Munno Para (Andrews & Hatcher Road), SA

The facility reached financial close during the month. The borrower will now look to obtain development approval over the facility term for the proposed development of 213 residential lots.