The facility was refinanced in April into a new 9-month land facility, with the expectation that it will transition to a construction facility upon maturity. No material updates are anticipated over the coming months, after which preparations will commence for the transition to the construction facility.

Inclement weather is forecast to move through the region shortly, resulting in a temporary suspension of heavy machinery works for an estimated three months, no shut-down as at end of June.

The facility is expected to be refinanced by BankSA into a construction facility in early July.

The property has been sold, with settlement expected to occur on 3 July, at which time the facility will be fully repaid.

Project continues to sell 10+ lots pcm, which is very strong in this market and within the Shepparton sub region.

Stage 4 is nearing practical completion with over 200% debt coverage. Sale proceeds are to be utilised to contribute toward the Stage 6 equity requirement.

Stage 5 is well commenced with stage 6 bulk earthworks also commenced within the Stage 5 construction programme.

The borrower continues to work with council to progress the planning application.

Development approval is progressing, with the RFI response submitted to Council and builder coordination and design activities advancing in parallel. Construction commencement is targeted for later in 2026. The wet subleases were surrendered and registered during the period.

The developer launched a refreshed sales and marketing campaign this month, including a press release, a new project website, social media advertising, and listing of the available lots across platforms including RealCommercial, Commercial Real Estate and Development Ready. Early market feedback has been positive, with the appointed agents reporting a strong level of enquiry. Building on the existing presales, a number of further lots are progressing through negotiation. We will continue to monitor sales progress as the campaign matures.

Construction is continuing on site, with the contractor mobilised and works progressing. The construction contract has now been agreed and fully executed between the borrower and contractor. Sales continue to be achieved in line with expectations.

Tatura

Stage 1 is fully sold and settled, while Stage 2 is fully sold with the remaining settlements expected over the next three months. Stage 3 was recently released, with 13 lots secured under contract and 47 lots currently available for sale. Koham continues to actively market the project.

Civil works are progressing across Stage 3, the final stage of the estate.

A potential refinance of the senior debt is currently under consideration, with ARK’s consent conditional upon the provision of Clyde share security.

Morwell

Civil works are progressing across Stages 1–3.

A total of 81 presales have been achieved across the estate.

The construction program has experienced delays, with practical completion now forecast for Stages 1, 2 and 3 in June 2026, July 2026 and August 2026, respectively.

The facility remains in default, with interest continuing to be capitalised on a monthly basis. ARK has formally reserved all of its rights following the facility’s expiry on 7 March 2025, including the right to apply default interest.

ARK is currently progressing a facility restructure, which financial close of the restructured facility is now expected in August 2026.

The borrower has refinanced the facility into a new first mortgage facility with a 24-month term to support a land banking strategy. While rezoning in the near term is unlikely following the property’s exclusion from the Ballarat North PSP, the asset is expected to be rezoned over the medium to long term as additional supply is required in the region.

The facility will be extended for a further 90 days to early September. This extension provides additional time to determine the most suitable development outcome for the site.

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

Clean-up works are complete and all Council RFI items have been addressed. The only outstanding item for final Subdivision Certificate sign-off is the Sydney Water Section 73 Compliance Certificate, expected imminently.

The Marina DA was formalised on 12 March 2026, a key milestone.

The sponsor has commenced a new sales strategy for the completed product with Belle Property.

Ark has received an indicative term sheet for the potential refinance of the facility, subject to a satisfactory valuation and satisfaction of other conditions precedent, including the issuance of titles.

Ark is working with the Sponsor to close the construction facility in early July, which will fund the remaining construction of Stages 5–7 and commence construction of Stages 35–38, being the next sequenced stage of the development. The proposed restructure will also extend the facility term and incorporate the subsequent stages.

Civil works across Stages 5–7 continue to progress well. Bulk earthworks have been completed, sewer works are substantially complete, and stormwater, watermain and roadworks are progressing toward completion in Q3 2026.

Sales performance across the estate has remained strong, with Stages 5 and 6 fully pre-sold and Stage 7 more than 70% pre-sold. Combined pre-sales across Stages 5–7 now exceed 93%, providing strong debt coverage for the facility.

19 of the 47 allotments settled in early June, with settlement of the remaining allotments progressing as planned.

Construction of the internal road network and associated services has been completed, with the works acknowledged by Council. The Sponsor is currently working through the remaining authority approvals, with settlement of the balance of the lots anticipated in mid to late July, which is expected to result in full repayment of the facility.

The sales agent continues to implement the progressive sell-down strategy and is actively engaging with prospective purchasers. Ongoing discussions with several interested buyers are progressing, with the aim of securing further sales as market opportunities arise.

The Sponsor is preparing to commence construction on the neighbouring land, with Ark actively engaging throughout the process.

The project continues to progress the planning and activation of future stages, with planning approvals secured and pre-sales continuing to perform well.

Construction is progressing well and is now firmly out of the ground. Approximately one-third of the contract works are complete. Footings, pads and underground services are finished, precast wall panels and structural steel are being installed across the warehouses, and stormwater works are underway. The project remains broadly on program, with practical completion targeted for late 2026.

The estate is being marketed by Knight Frank, with approximately one-third of units now under contract and enquiries strengthening as the buildings become visible on site.

Construction continues to progress; however, the project is currently behind schedule due to delays in obtaining external authority approvals at the commencement of works.

Retaining wall construction is nearing completion, while sewer reticulation and drainage works are progressing on site.

Given the current construction progress, the facility will require a term extension. Ark is working closely with the Sponsor to facilitate the extension process.

Despite the construction delays, sales activity has remained strong, with existing pre-sales exceeding 85% of the available lots.

Construction is progressing well, with groundworks underway and sewer installation currently in progress.

Sales activity has remained positive, with seven unconditional pre-sales representing approximately 47% debt cover. The Sponsor is also progressing negotiations with several prospective purchasers.

The Sponsor continues to progress pre-construction activities, with the appointed civil contractor finalising mobilisation and preparing for the commencement of works.

Sales momentum has remained positive, with the sales agent continuing to engage with prospective purchasers. Pre-sales remain well ahead of the facility’s minimum debt cover requirement, providing a strong level of support for the project.

The Sponsor is progressing a refinance with an alternative lender, which is expected to complete in mid-July as part of its ongoing land banking strategy.

Wall and roof framing have been completed for the majority of the townhouses, with construction progressing on schedule and in accordance with the project program.