The borrower continues to hold the properties as a land bank. The due diligence period on the Oakbank PSP has been completed. The VPA has submitted the 2025/2026 business plan to the Minister for Planning which includes prioritisation of Horizon 2 PSPs. There is potential for the Oakbank PSP to be included in the business plan, while no official timeframe for approval has been provided.

The borrower is working to satisfy the outstanding conditions precedent for the refinance. As the current facility has now expired, the loan is in default pending financial close of the new facility.

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

Civil works on site are now complete. The remaining focus is the filtration unit installation and the Ausgrid outage scheduled for December 2025. Title issuance is forecast for late January 2026.

Council issued further feedback on the marina DA on 22 October 2025. Amended plans were lodged on 14 November 2025, with approval anticipated in late January 2026.

Across Stages 5–9, more than 90% of lots have been sold. Although the facility only relates to Stages 5–7, sales in Stages 8 and 9 have also been strong, with 100 of 101 lots now contracted.

Civil works for Stages 5–7 continue to progress, with completion expected in Q1 2026.

Tree stumps have been removed and topsoil stripping is finished. With bulk earthworks now over 90% complete, the site is taking shape.

Remediation works have now been completed, with all soil and vapour validation returned within required limits and holds auditor sign off. The final report is inb the process of being sent to the EPA for acceptance.

Civil works will be expected to commence before 8 December 25, with a tender price accepted and documentation being finalised.

The borrower continues to finalise the detailed design and execute the civil works contract to enable the project to progress into the construction phase.

ARK has refinanced the property into a new seven-month facility, providing the sponsor with sufficient time to complete the renovations. These works have already generated value uplift for the property.

The project has reached completion, with the Certificate of Occupancy issued on 23 September 2025. Urban Rest has offered to lease the hotel component on a three-year term at $1.2 million per annum, with execution expected by early December.

One of the six Sky Loft apartments has settled, reducing the facility by $3.6 million. A second apartment is sold but remains subject to the purchaser selling their existing home.

The West Lakes property settlement has been delayed to 1 December 2025 due to outstanding site clearance works. The heritage hotel component, sold for $2.5 million and leased to a food and beverage operator, is also scheduled to settle on 1 December.

Following these settlements, the residual LVR is projected to reduce to ~60%. A major bank has issued indicative terms to refinance the hotel at a 65% LVR, targeting settlement on 19 December 2025. The sponsor has also executed a term sheet with ARK for a residual stock facility to support a refinance of the remaining five apartments.

The borrower has received the draft permit conditions however the issuance of the final planning permit has been delayed due to errors in the authority sign-offs, which must be corrected before the permit can be finalised. It is anticipated that the permit will be issued next month.

The borrower continues to hold the property as an investment asset.

The borrower continues to work with council in preparation for securing the planning permit.

Development Approval is expected for December with early communications with council having taken place regarding a planning permit. The borrower has commenced online advertising for future factory/warehouses on site.

The engagement report for the code amendment is nearing completion and will be submitted to the Minister for Planning, with approval expected by the end of Q1 2026.

Since reaching financial close, the sponsor continues to work on progressing the planning application.

Following financial close in October 2025, the sponsor has continued progressing the planning application, with approval forecast for December 2025.