Civil works continue to progress on site. Services and pits are well progressed, kerbing is being laid, and some house pads have begun being prepared for concrete pours.

Communication between the borrower, the town planning consultant, and the council is ongoing to address all remaining outstanding council requirements. The borrower expects these matters to be nearing completion, with planning consent anticipated shortly.

As part of the refreshed sales and marketing campaign, the number of lots released to market has been reduced to better position the product offering and support stronger buyer engagement. Revised pricing has been set for the available lots, which remains above valuation levels. The updated marketing brochure has been finalised, and the new project website is now live.

Basement slab works are 50% complete, with reinforcing, concrete preparation, pour, and float undertaken this month, and the remaining slab, crane footing, and material deliveries scheduled in the coming weeks.

Tatura

• Koham Property continues to actively market and settle the remaining lots across Stages 1 and 2.
• Civil works have progressed on Stage 3, the final stage of the estate.

Morwell

• Civil works are underway across Stages 1–3.
• The contractor’s forecast timing has been delayed, with practical completion expected for Stages 1, 2 & 3 in late May-26, early Jun-26 and July-26 respectively.
• The facility remains in default, with interest being capitalised monthly. ARK has formally reserved its rights following the 7 March 2025 expiry, including the right to apply default interest.
• ARK is in the process of finalising a restructured facility, which has taken considerably longer than expected. The restructure is now forecast for completion in May 2026.

The borrower is expected to refinance the facility at the beginning of May 26. The council determination is anticipated around the same time. While near-term rezoning is unlikely following the property’s exclusion from the Ballarat North PSP, the asset is still destined to be rezoned in the medium-long term once further supply is required in the region.

The borrower is seeking an extension of the existing facility to allow additional time to determine the optimal development outcome for the land. This will provide the flexibility to assess various options including potential development pathways or a sale, before committing to a preferred strategy.

The facility, which expired on 28 July 2025, remains in default, with interest continuing to capitalise until repayment.

There has been a delay to the remaining clean-up works, which are now forecast for completion in May 2026, with the Subdivision Certificate expected to issue in the same month and titles to follow shortly thereafter.

The Marina DA was formalised on 12 March 2026, representing a key milestone for the project following several months of delays and uncertainty.

There are currently no presales in place and all sales hurdles have been missed, with the sponsor now commencing a sales strategy for the completed product.

Ark has received a copy of an Indicative Term Sheet in relation to the potential refinance of the facility, subject to a satisfactory valuation report amongst various other conditions precedent.

‘Sales performance across the estate has been strong, with over 95% of lots across Stages 5–9 now contracted. Ongoing sales activity is limited given the high level of contracted stock, though pricing depth remains evident with terminated sales achieving strong premiums above original contract prices.

A facility restructure is being considered to extend the term and incorporate subsequent stages, with execution targeted for June 2026 following an updated valuation expected in May 26.

Civil works across Stages 5–7 are progressing well, with bulk earthworks complete, sewer largely done, and stormwater, water and roadworks progressing toward completion in Q3 2026.

All contracted sales across both facilities have now settled, with corresponding loan repayments received. As a result of settlements to date, each facility is now considerably de-risked from an LVR perspective.

The remaining assets are expected to be leased and refinanced in due course, supporting an orderly exit of both facilities.

Remediation works on site are now largely complete, although they took longer than initially anticipated, delaying the commencement and progression of civil works. Civil works commenced in March 2026, alongside payment of the required bonds, enabling the project to continue without further delay.

As a result of cost overruns and programme delays, the overall development timeline has been extended. An extension to the facility has been agreed to allow sufficient time for title issuance and the sale of pre-sold stock, with documentation currently being prepared to provide an additional 90-day term.

Sales releases continue to be well received, with ongoing buyer demand supporting the take-up of remaining lots.

An unconditional sale was achieved in mid-April with a 30-day settlement period, reflecting the effectiveness of the ongoing sell-down strategy. Further prospective buyers remain in active discussions.

The facility was refinanced in late March 2026 on a short-term basis to facilitate pre-construction works. Development Approval (DA) has since been granted, marking a key milestone and significantly de-risking the planning position.

The project has also secured Tranche A allocation under Round 3 of the Housing Australia Future Fund (HAFF), for a considerable portion across three initial stages of the subject site.

Construction is progressing well, with key foundational works and essential services now completed, supporting continued momentum on site. Practical completion is forecast for 30 November 2026.

Sales activity is building, with a number of units already secured and further interest progressing. The sponsor also intends to retain 7 units, reducing the remaining stock to 19 units in the market.

Following further review of the project and evolving market conditions, the sponsors have taken a prudent approach and are pursuing a sale strategy for the site rather than proceeding with immediate construction. The asset is fully prepared for development, which positions it well to appeal to incoming developers.

Early market engagement has been encouraging, with active buyer interest and indicative pricing broadly in line with expectations. Current guidance suggests a sale outcome that provides significant buffer above the existing facility balance.

There has been a delay to commencement, with piling works still underway on site. The first construction drawdown is now expected slightly later than originally anticipated, with timing to be confirmed as piling completes and the broader works mobilise.

The project remains on track, with the Development Manager maintaining confidence in achieving the targeted practical completion in late July 2026. Key civil works are progressing well, and timelines continue to be closely monitored.

While there have been some timing impacts associated with external authority approvals, this coordination is expected to deliver efficiencies to the project by reducing the scope of required infrastructure works.

Sales activity continues to progress, with additional settlements achieved since the last update.

The sponsor commenced the remaining construction works in December 2025, with practical completion now forecasted for early May 2026.

The sales campaign will commence immediately upon completion, with the sponsor intending to launch marketing once prospective buyers can inspect the finished dwellings.