• Stage 2 is nearing completion, with the Statement of Compliance expected in the first week of August 2025 and title registration the following week. Settlements are set to commence in late August 2025.
• To date, 53 of 55 Stage 1 lots have settled, with one of the remaining two under contract. Across Stages 1 and 2, 54 of the remaining 60 lots are presold.

Morwell:

• Civil works have been approved by Latrobe City Council and relevant authorities, with work set to commence in early August 2025. Practical completion (PC) is expected for Stages 1 & 2 by Q1 2026, and Stage 3 by July 2026.
• Presales are progressing well, with 50 across Stages 1–3 and 9 in Stage 4. Marketing has resumed, generating strong early enquiries on remaining stock.
• The Australian Government’s Housing Support Program has allocated $7.9 million for sewer infrastructure benefiting the property.

The facility is currently in default, with ARK reserving its rights from the facility expiry, 7 March 2025 to charge default interest until an appropriate resolution or exit is reached with the Borrower.

Following the property’s exclusion from the Ballarat North PSP in December 2024, a valuation was completed, with a secondary valuer opinion provided afterwards, supporting the same reduced value.

ARK is exploring options to maintain covenant compliance and protect investor interests, with completion expected by 31 August 2025. The sponsor is due to provide a final position early August, with the remainder of the month to apply the necessary changes.

Discussions with the borrower have been positive, and ARK is confident in achieving an outcome aligned with investor interests.

A valuation is instructed and anticipated by end of July to allow for facility extension. No updates to overall development plan and Borrower continues to strategically hold the property short-medium term.

At Sellicks Beach, 4 of the 8 remaining residential lots are still available, with one set to be subdivided into two, projecting a 25% premium over the most recent valuation. In addition, one commercial lot has been contracted above its valuation, with settlement expected in late September 2025.

More than 70% of the working drawings for the future build at The Buckingham are finished, and the final build price is anticipated by September 2025.

There are four lots remaining in Stage 4. The Springwood market remains strong, with 126 of 153 lots pre-sold in Stages 5 to 7. Stages 8 and 9 (outside of the facility) have achieved over 90% presales.

Civil works for Stages 5 and 6 are underway, with completion expected in Q1 2026.

A final price has been agreed with the civil contractor, and the contract has now been executed, paving the way for works to commence next month.

Sales continue, with Stage 1 now 50% sold and Stage 2 (practical completion achieved) now 63% sold.

Works on Stage 3 are progressing as expected albeit slightly ahead of schedule.

Planning approval is anticipated in late August or early September. As a result, an extension to the facility will be required and this is currently being discussed with the borrower.

Civil works continue to progress well, with over 85% of contracted works now complete. Windows and doors installation is well underway, bathroom fitouts are significantly progressed, and the majority of warehouse floor slabs have been poured.

Sales interest remains strong, with 8 sales executed, 6 on hold for the sponsors, and 2 in negotiation for the remaining 5 lots available for sale. The site’s enhanced presentation and ongoing construction continue to attract prospective purchasers.

Inclement weather in July 2025 has continued to impact the delivery timing of remediation works, with completion now forecast for mid-August 2025.

Excavation of contamination hotspots has been completed, and the area has been backfilled, marking a significant achievement for a key project risk.

Slab removal is nearing completion, with vapor and groundwater monitoring set to continue until the completion of earthworks.

Development and subdivision approval is expected early August. Council have received all information required to proceed with approval. This is expected to deliver significant uplift to the land value. The Sponsor is currently organising an updated valuation.

Discussions with Goldfields are currently being held, to determine the best funding solution regarding the extension and the potential uplift in the land value. This is expected to be finalised early August.

Works are underway and continue on site. Functional Layout Plans have been approved by the Department of Transport and Planning for stages 1 and 2.

Bulk earthworks are underway by civil contractor Winslow.

The project continues to progress onsite.

Skyloft Apartments:

• Level 4 is complete.
• Level 5 is nearing practical completion and is scheduled for completion by 2 August 2025. There has been some slight delays on the finishing works of the apartments.

Hotel Component:

• The hotel completion has been delayed, with practical completion now expected in early September. The sponsor has a potential buyer that is wanting to operate the hotel compnent itself not including the food and beeverage area. The delay is primarily due to a change in hotel management, as the intended purchaser has opted to self-operate the hotel. As a result, the design has been amended to include a café and food and beverage area to accommodate an external operator.

The West Lakes property remains on track to settle in October 2025. Additionally, the Sponsor has now sold two of the Skyloft apartments, reducing the residual LVR to approximately 59%.