January 2024:
Investment Updates

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

View Updates:

Banks, ACT

The facility has been extended for an additional 12-month term with a lower LVR, following an updated valuation that confirmed an increase in value.

Oakleigh, VIC

The structure of the building was completed at the end of last year and practical completion is currently anticipated to be achieved in mid-April. The facility has been extended until the end of June 2025 to provide additional time for the remaining works to be completed and settlements to occur.

SPG Morwell, VIC (Mezzanine)

Tatura
Stage 2 civil works are well progressed with practical completion achieved on internals, and the Statement of Compliance (SOC) is expected in February 2025, while approval is being sought from the Department of Transport and Planning (DTP) for the intersection construction; the borrower has reported 50 presales out of 60 remaining lots across Stages 1 and 2, reflecting strong demand, and 53 settlements of 55 lots have been completed to date from Stage 1.

Morwell
Bulk earthworks for Stages 1, 2, and 3 are ongoing, with 58 presales achieved across the stages and marketing efforts resumed, attracting an additional 9 sales since the previous month.

Ballarat North, VIC

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

According to the latest update from the VPA, they will prepare and finalise the Ballarat North PSP focusing solely on the Core Area of the precinct and not the Expanded Area containing the property.

However, planning for the Core Area will incorporate considerations for future-proofing the Expanded Area, recognising its potential for additional growth as a logical extension for the region.

ARK is currently assessing the impact of the exclusion from the Ballarat North PSP on the land value. If deemed necessary, ARK will consider instructing a re-valuation to be completed to determine any required adjustments to the facility.

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 is under contract, with settlement scheduled to occur in September 2026. This allows for a seamless refinance into a new facility with ARK or an alternative lender at maturity which aligns with the settlement timeline.

Gungahlin, ACT

The borrower intends to strategically hold the property in the short to medium term whilst continuing to monitor the market. The planning overlay remains supportive of a major mixed use development on the site.

Baldivis, WA

Settlement which was initially scheduled for mid-December, did not proceed as planned. Consequently, ARK has appointed Mervyn Kitay of Worrells WA as receiver and will continue to work with the purchaser’s legal representatives to facilitate the settlement as swiftly as possible.

The purchaser has paid an additional $100,000 deposit, with ARK having received both the initial deposit and the latest top-up, bringing the total funds held to $260,000. Additionally, ARK maintains a substantial interest reserve balance of $240,000 which is equivalent to approximately 15 months of interest.

Sellicks Beach, SA

Out of the 42 residential lots, 29 have been sold, highlighting the success of the marketing campaign to date. Since December 2024, an additional 2 sales have been achieved and active discussions ongoing with prospective buyers.

Settlements have commenced, with the first batch of allotments successfully reaching settlement at the end of January 2025.

Box Hill, VIC

ARK currently controls the site as the mortgagee in possession. A refreshed marketing campaign aimed at increasing property visibility and attracting potential buyers is expected to go live in February and is anticipated to run for 6 weeks. Several sales agent proposals to lead the new sales campaign are currently under review. ARK will continue to underwrite interest to investors.

Newport, NSW

Steady progress is being made on site with demolition now fully completed. Delays experienced to date have been due to the late issuance of the Construction Certificate (CC), required to ensure compliance with building codes and development consent conditions.

It is anticipated that a short term extension to the facility will be required to provide additional time for the remaining works to be completed and the subsequent settlement period.

Gawler East, SA

The estate has seen strong sales performance, with the Gawler market showing a positive response. A total of 183 presales have been secured across Stages 4 to 7, with all lots in Stages 4 to 6 under contract, except for one.

Stage 4 has now achieved practical completion, with settlements expected to commence in February 2025.

Bulk earthworks for Stages 4-7 have commenced, with civil works for Stages 5 to 7 scheduled to be completed concurrently and anticipated to conclude by the end of 2025. Civil works for Stage 5 are expected to begin in February 2025.

Munno Para (Smithham Road), SA

The borrower has finalised the Land Management Agreement (LMA) with the local council and is now in the final stages of planning approval which is expected in early February 2025. The proposed subdivision will be funded by ARK, and works are forecast to commence in early April 2025. This will enable refinancing of the facility on or before the termination date.

Morayfield, QLD

The facility has been extended until the end of March to provide adequate time for the scheduled settlements to be completed. There are 4 lots due to settle in February however full repayment of the facility will be achieved once 3 lots have settled.

Shepparton North, VIC

Practical completion on Stage 1 has now been achieved and titles are expected to be issued early next month with settlements to commence shortly thereafter.

Stage 2 works are underway with bulk earthworks and sewer works completed to date.

Bracken Ridge, QLD

The project is progressing towards practical completion, with the remaining acoustic barrier works anticipated to conclude in early February. The Department of Transport is scheduled to inspect the completed works upon their finalisation. Additionally, council have requested rectification works which is currently being completed by the builder.

Plan sealing and title registration are expected to occur in February, with settlements anticipated to follow shortly thereafter.

Wellington Street, WA

The borrower is still in the process of reviewing several offers and is considering whether to proceed with a sale or to advance the proposed development.

Burpengary, QLD

Demolition and site clearing have been completed on site. However, the borrower was required to amend the operational works application, delaying the finalisation of the civil contract. The application is expected to be finalised in early February, enabling the civil contract to be signed and construction to commence promptly thereafter.

Munno Para (Andrews & Hatcher Road), SA

The borrower lodged the planning application for the proposed 213-lot subdivision in early January and are awaiting preliminary feedback from council.

Elizabeth South, SA

Civil works are moving ahead of schedule. Precast panels are being installed in stages, and roofing is added as each stage of precast is completed. This work is expected to continue until February 2025, by which time the warehouse slabs will be poured.

Salisbury Plain & Kent Town, SA

The borrower is actively working to secure development approval for both properties, with approval for the Salisbury Plain property anticipated before March.

Devon Park, SA

Demolition activities continue on-site, with completion now expected in early February 2025.

Remediation tenders have been received and are currently under review, with initial indicative cost aligning with expectations.

Cowaramup, WA

Since settlement, the borrower has continued progressing an amendment to the Local Structure Plan (LSP). The application has been referred to the Department of Planning, Lands and Heritage (DPLH), the final decision-maker. The borrower and DPLH have held multiple meetings to address comments and resolve any issues. The Stage One subdivision application is scheduled for lodgement in Q1 2025, with approvals for both the LSP amendment and subdivision anticipated by the end of Q2 2025.

New Farm, QLD

The borrower continues to hold discussions with major banks to secure a refinance offer for the property.

Icon Morwell, VIC

The facility reached financial close at the end of 2024. Due to the January holiday period and the absence of key personnel, works have not yet commenced. The civil contractor is expected to mobilise on-site in late February, with construction anticipated to span 12 months.