The borrower continues to work towards the refinance of the facility.

Tatura:
• Stage 2 is nearing completion, with all approvals for Statement of Compliance secured except for sign-off from Transport for Victoria, which is expected in the first week of July 2025. As a result, practical completion and title registration are now anticipated to occur in July, and settlements to commence shortly thereafter.
• To date, 53 of 55 lots from Stage 1 have settled, with one of the remaining two under contract. Across Stages 1 and 2, 54 of the remaining 60 lots are presold.

Morwell:
• Bulk earthworks are progressing across Stages 1–3, with civil works now approved by Latrobe City Council and relevant authorities. Practical completion is forecast for end-2025 (Stages 1 & 2) and Q2 2026 (Stage 3).
• Presales continue to track well, with 50 across Stages 1–3 and a further 9 in Stage 4. Marketing has recommenced, which has attracted strong early enquiries on the remaining stock.
• The Australian Government’s Housing Support Program has allocated $7.9 million for sewer infrastructure benefitting the property.

The facility is currently in default, with ARK reserving its rights from 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 Dec-24, an updated valuation was completed and reviewed by ARK, with a second valuer opinion supporting a similar outcome and reduced value of the property.

To manage the reduced value, ARK has outlined several options to maintain covenant compliance and protect investor interests. This will be done either by reducing the facility limit, securing additional collateral or providing a new facility.

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

The new facility reached financial close at the end of the month.

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.

At Sellicks Beach, 4 of the 8 residual lots have now sold and settled, reducing the facility LVR. A further lot is being subdivided into two, with both new lots under contract at a 25% premium to the most recent valuation. Additionally, one commercial lot has been contracted above valuation and settlement is due in late September 2025.

Demolition and renovation works to convert the existing hotel at The Buckingham into a site office are complete. Approximately 70% of full working drawings have been completed, with the final build price expected by August 2025.

Sales advice has been received for one lot however contract execution has been delayed due to final architectural updates required for the proposed future build. This represents a shift from last month’s expectations, where execution was originally anticipated within June.

Recent sales activity in Newport indicates improving market sentiment, with Domain Projects reporting interest in three lots and a returning prospective buyer, reflecting a positive shift in buyer confidence.

Civil works have again been delayed, now expected to be completed in July 2025. The delays have primarily been caused by the late issuance of the Construction Certificate, ongoing council-related matters, and more than 90 days of inclement weather.

‘The remaining 4 lots in Stage 4 have been terminated (with ARK’s approval), given the significant uplift in resale value will now be re-listed on the market.

Sales performance across the estate remains strong, with 125 of 153 lots pre-sold across Stages 5 to 7. Stages 8 and 9 (outside the facility) have achieved over 90% presales.

Bulk earthworks are currently forecast to be completed by the end of 2025. Civil works for Stages 5 and 6 are currently underway, with completion targeted for 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.

There was one lot settled in Stage 1 during the month and another lot is expected to settle in July.

Practical completion has been achieved for Stage 2, with titles expected to be issued by mid-next month and settlements anticipated to commence by month-end.

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

The facility expires at the end of July 2025, allowing the borrower additional time to evaluate the offers received.

A three-month extension to the facility has been finalised, with the maturity date extended to January 2026 and the facility limit remaining unchanged following adjustments to the funding table. The extension was required due to initial delays in project commencement, primarily related to sewer servicing requirements and prolonged discussions with council. These matters have now been resolved, and construction is underway on site.

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.

Over 80% of contracted works are now complete. Precast walls have been installed for 22 of the 24 warehouses, and roof sheeting is complete on 21. Stormwater works and remaining structural elements are progressing as scheduled.

Sales performance remains strong, with 7 sales executed and several others in advanced negotiations. The current level of construction significantly enhances the site’s presentation and appeal for prospective purchasers.

Remediation works are now scheduled for completion in early July 2025, after weather delays impacted the original June timeline.

Slab removal is approximately 90% complete, with all concrete material disposed of off-site. To date, no risks have been identified outside the allowances set out in the remediation contract.

Each staged lot release has been well received by the market and fully sold, reflecting continued strong demand.

The final application has now been lodged incorporating the approved amendments. Development approval is expected imminently, with subdivision approval anticipated in July.

A three-month extension to the current facility will be required to provide adequate time for construction to commence in December and for a construction facility to be finalised.

The borrower has been undertaking renovations on the property, which are expected to significantly enhance its value and are currently being funded with equity. The works are taking longer than originally anticipated, and an extension to the facility will be required. Discussions with the borrower regarding the extension are currently in progress.

Bulk earthworks have continued throughout June, and site stripping is well advanced. Detailed civil design packages for Stages 1 and 2 are undergoing final quality assurance, with council lodgement expected shortly. Water design will progress further once sewer design advances, while the Stage 1 interim intersection Functional Layout Plans have been submitted to the Department of Transport and Planning, with feedback expected soon and detailed designs progressing in parallel.

Construction continues to progress including the following:

• Bulk earthworks are well advanced
• Sewer works are nearing completion
• External stormwater is complete
• Retaining walls are progressing with 90% of posts in place
• External road sub base grade completed

The borrower has sold 47 out of the 70 lots, however, only 33 of these have been recognised as qualifying presales which represents 45% debt cover.

Since financial close, the project has continued to progress across all components.

Skyloft Apartments:
• Construction of Level 4 has been completed and fully fitted out, with ongoing inspections by prospective purchasers.
• Level 5 is nearing practical completion and is scheduled for completion by 2 July 2025.

Hotel Component:
• Works are progressing well on site and the remainder of the hotel and associated fit-out is expected to be completed by 21 July 2025.

Additionally, the West Lakes property, held as residual security, has been successfully sold for $10.3m, with settlement scheduled to occur in October 2025. The sale will materially reduce the overall facility.

The sponsor has commenced the process of seeking construction finance for the proposed childcare centre.