November 2024: Investment Updates

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

In Victoria, Oakleigh’s construction is progressing as planned, with key structural milestones nearing completion. Presales at Morwell are strong, and Tatura is seeing steady sales. Ballarat North’s PSP update is expected by December 2024, while Mount Cottrell is holding land for potential future sale.

In the ACT, Banks is awaiting a refinance extension, with an updated valuation expected to improve the LVR. Gungahlin is exploring development options, with plans continuing to evolve.

In Queensland, Morayfield’s settlements are scheduled, though a short extension is expected. Bracken Ridge has minor delays but is progressing well, while Burpengary is preparing for civil works. New Farm reached financial close, with refinancing discussions underway.

In South Australia, Sellicks Beach is seeing successful sales, with 27 lots sold so far. Gawler East is performing strongly, and Munno Para is awaiting final planning approvals. Projects in South Australia are advancing well with positive market response.

In Western Australia, Baldivis is on track for a mid-December settlement, and Cowaramup has reached financial close, with development approval in progress. The Wellington Street project is exploring its next steps, either through sale or development.

View Updates:

Banks, ACT

The borrower has advised that additional time will be required to complete the refinance into their SMSF. ARK anticipates that the facility will need to be extended for a further 12-months. An updated valuation is expected to confirm an increase in value which will reduce the LVR on the facility.

Oakleigh, VIC

Works have continued to progress as anticipated. The structure of the building is on track to be completed by the end of the year, marking a significant construction milestone. The slab on ground and Level 1 slab are both 95% complete whilst the level 2 slab is 80% complete and the precast panels installation is 85% complete.

Morwell, VIC (Mezzanine)

Tatura
Stage 2 civil works are progressing well, with practical completion expected by February 2025. The borrower has successfully secured 101 presales out of 113 available lots for both Stages 1 and 2. To date, 51 out of 55 lots in Stage 1 have been settled, demonstrating strong demand and steady progress on the project.

Morwell
Bulk earthworks for Stages 1, 2, and 3 are currently underway at Morwell. To date, 49 presales have been secured across all three stages of the project. Marketing efforts have resumed, generating immediate interest and sparking discussions on multiple allotments, further boosting the project’s momentum.

Ballarat North, VIC

The Victorian Planning Authority (VPA) Business Plan 2024–2025 identifies the Ballarat North PSP as one of four key Housing Statement projects in regional cities and towns.

An update to the Ballarat North PSP, incorporating the Expanded PSP Area that includes the property, is expected to be released in December 2024. The timeline for gazettal of the Ballarat North PSP remains unchanged, with completion anticipated in mid to late 2025.

The VPA has indicated that if the Ballarat North PSP is included in the Expanded PSP Area, the amended zoning is expected to be finalised in the first half of 2025.

Mount Cottrell, VIC

The borrower intends to retain the two remaining security properties as a land banking opportunity while due diligence continues on the Oakbank PSP. They are also considering the option of selling the properties during the facility term.

Leakes Road, VIC

The property remains under contract with settlement scheduled for September 2026. Notably, there was a sale of an adjacent property at 562 & 600 Leakes Road in October for a total of $100m which is equivalent to $2.1m per hectare, this is approximately $700k per hectare higher than the latest valuation of the subject property.

Gungahlin, ACT

The Borrower continues to explore several development scheme options.

Baldivis, WA

The property remains under contract, with the sales agent confirming that the incoming purchaser is on track to settle in mid-December.

Sellicks Beach, SA

Civil works have been completed, with practical completion achieved on 25th November 2024.

A total of 27 out of 42 residential lots have been sold, showcasing the success of the marketing campaign to date.

Initial settlements are anticipated to commence in late December.

Box Hill, VIC

ARK has now assumed control of the site as the mortgagee in possession. The sales agent will continue to actively work with interested parties to secure a sale of the property at an acceptable price.

Newport, NSW

Heavy machinery continues to operate on-site, ensuring steady progress in the civil works phase.

Several prospective purchasers, working alongside a reputable local builder, are progressing through the design phase of their projects to implement their plans following the land acquisition.

Gawler East, SA

Sales activity across the estate continues to perform strongly, with positive reception in the Gawler market. Stages 4 to 7 have achieved 183 presales, with all lots in Stages 4 to 6 contracted except for one.

Civil works for Stage 4 are progressing well, with practical completion anticipated by the end of December 2024 and settlements scheduled for January 2025.

Bulk earthworks commenced this month, with civil works for Stages 5 to 7 set to start simultaneously and expected to be completed by the end of 2025.

Munno Para (Smithham Road), SA

Updated planning documentation was submitted to council at the end of November in response to a final request for information.

Council has indicated that planning approval should be received prior to Christmas or in early January 2025.

Morayfield, QLD

There are several settlements which are scheduled to occur in December. Based on the latest settlement schedule, ARK anticipates that the facility will need to be extended for a further 30 days.

Shepparton North, VIC

Due to inclement weather, there has been a slight delay to practical completion which is now anticipated to occur by mid-December.

Settlement of the Stage 2 construction facility took place during the month.

Bracken Ridge, QLD

The civil contractor has demobilised from the site and the remaining works are well progressed. There has been a minor delay to practical completion due to inclement weather during the month.

Works on site during the month include Acoustic wall post installation and Landscaping.

Due to the weather delays, title are expected to be issued in January with settlements to follow in February.

Wellington Street, WA

The sales campaign has successfully concluded, generating significant interest.

The borrower is now evaluating their options, deciding between proceeding with a sale or advancing the proposed development.

Burpengary, QLD

Site clearing has been completed and Shadforths are expected to commence the civil works once the civil contract is finalised which is imminent.

Munno Para (Andrews & Hatcher Road), SA

The borrower is working with various consultants to finalise design and engineering plans, aiming to submit planning permit documentation in the first quarter of 2025.

Elizabeth South, SA

Civil works are progressing ahead of schedule, with strip footings completed and stormwater tanks installed. Precast panel installation is scheduled for early December, followed by structural steel and roofing.

There has been strong demand for industrial sites in Adelaide, with notable interest in the lots developed as part of the project.

Salisbury Plain & Kent Town, SA

Following financial close, the borrower continues to focus on obtaining development approval for both properties.

Devon Park, SA

The facility reached financial close during the month. Demolition activities have commenced on-site and are progressing as planned, with completion anticipated by December 2024.

Cowaramup, WA

The facility reached financial close during the month. The borrower will now seek to obtain development approval during the facility term for the proposed development of 184 lots.

New Farm, QLD

The facility reached financial close this month, and the borrower will advance discussions with several major banks to secure a refinance offer during the facility term.