Investment Updates: September 2024

In addition to the completion of the slab on each level and the installation of the precast panels, several other works were in progress, including the installation of fire services, plumbing rough-ins, electrical rough-ins, structural steel for the roof, and roofing.

Provided that there are no delays, it is expected that the structure of the building will be completed by the end of the year.

Works have continued to progress as anticipated. The structure of the building is on track to be completed by the end of the year, marking a significant construction milestone. The slab on ground and Level 1 slab are both 95% complete whilst the level 2 slab is 80% complete and the precast panels installation is 85% complete.

Tatura

Stage 2 civil works are continuing after the practical completion of Stage 1.
Sales have been strong, with the borrower securing 95 presales out of the 113 available lots across Stages 1 and 2. To date, 46 settlements have been completed from Stage 1.

Morwell

Bulk earthworks for Stages 1, 2, and 3 are ongoing at Morwell, and sales remain strong with 49 presales achieved across these stages.

The Ballarat North PSP amendment to include the Expanded PSP Area containing the property is expected to be announced in Q4 2024. Gazettal of the PSP is anticipated to occur in mid to late 2025.

The Victorian Planning Authority has advised that if the Ballarat North PSP is included in the Expanded PSP Area, amended zoning will be completed in H1 2025.

The borrower will retain the two remaining security properties as a land banking opportunity whilst the Oakbank PSP advances through due diligence. The borrower is also exploring the option of selling the properties during the facility term.

The property remains under contract with settlement scheduled for September 2026. This will facilitate a straightforward refinance from ARK or an alternative lender on or prior to maturity that will align with the settlement date of the incoming purchaser.

Financial close for the refinance into a new 12-month land facility occurred during the month.

The property has been sold and will settle in November, repaying the facility in full.

The project is progressing well with practical completion expected on 28 November 2024. Currently, 28 out of the 42 residential lots have been presold, representing 3 additional sales compared to the previous month.

The property has now been sold with settlement scheduled to occur at the end of October which will repay the facility.

All construction works are complete and the borrower is centering their efforts on selling the remaining 6 lots.

The borrower has advised that they are expecting a large portion of the facility to be repaid at the end of October through settlements with the balance of the facility to be repaid at the end of November.

The sales campaign to sell the property continues with no acceptable offers received to date. The sales agent continues to work with interested parties to finalise a sale of the property at an acceptable sale price.

Demolition and site clearing is complete and the subdivision civil works have commenced.

Several interested purchasers continue to advance through the design phase.

The largest allotment within the project has an agreed sale price c. 15% above the valuation. Formal execution of the sales contract is imminent, with plans and designs now finalised.

Sales activity has been strong across the estate and has been well received within the Gawler market. From Stages 4-7, there are currently 180 presales , representing over 80% of available lots across those stages.

Civil works continue to progress across Stage 4 of the project.

Updated planning documentation was submitted to council at the end of November in response to a final request for information.

Council has indicated that planning approval should be received prior to Christmas or in early January 2025.

There are several settlements which are scheduled to occur in December. Based on the latest settlement schedule, ARK anticipates that the facility will need to be extended for a further 30 days.

Due to inclement weather, there has been a slight delay to practical completion which is now anticipated to occur by mid-December.

Settlement of the Stage 2 construction facility took place during the month.

The civil contractor has demobilised from the site and the remaining works are well progressed. There has been a minor delay to practical completion due to inclement weather during the month.

Works on site during the month include Acoustic wall post installation and Landscaping.

Due to the weather delays, title are expected to be issued in January with settlements to follow in February.

The sales campaign has successfully concluded, generating significant interest.

The borrower is now evaluating their options, deciding between proceeding with a sale or advancing the proposed development.

Site clearing has been completed and Shadforths are expected to commence the civil works once the civil contract is finalised which is imminent.

The borrower is working with various consultants to finalise design and engineering plans, aiming to submit planning permit documentation in the first quarter of 2025.

Civil works are progressing ahead of schedule, with strip footings completed and stormwater tanks installed. Precast panel installation is scheduled for early December, followed by structural steel and roofing.

There has been strong demand for industrial sites in Adelaide, with notable interest in the lots developed as part of the project.

Following financial close, the borrower continues to focus on obtaining development approval for both properties.

The facility reached financial close during the month. Demolition activities have commenced on-site and are progressing as planned, with completion anticipated by December 2024.

The facility reached financial close during the month. The borrower will now seek to obtain development approval during the facility term for the proposed development of 184 lots.

The facility reached financial close this month, and the borrower will advance discussions with several major banks to secure a refinance offer during the facility term.

There have been some delays in the issuance of planning approval and this is now expected in mid-October.

Post approval, the borrower intends to appoint a civil contractor and to activate the site for construction in the first quarter of 2025.

There have been delays in the issuance of titles and these are now expected to be issued in October. Settlements are anticipated to commence in early November.

Works continue to progress in line with expectations. Advancements achieved during the month include the progression of the wetland construction which is now 95% complete and the continuation of the civil works including kerb and channelling.

Works on site have continued to progress throughout the month, including the completion of earthworks, internal sewer, water, stormwater, and road works.

The acoustic barriers are 70% complete, internal electrical and gas installations are finished, the external sewer is nearing completion, and the topsoil respread is ongoing.

A sales campaign is currently in progress to gauge interest in the property, as the borrower evaluates whether to move forward with the sale or proceed with the proposed development.

Demolition has been completed on site including power abolishment and demolition of the existing dwellings.

The civil construction tender process was run during the month with several highly experienced civil contractors being considered. The contract is expected to be awarded in early October.

The facility reached financial close during the month. The borrower will now look to obtain development approval over the facility term for the proposed development of 213 residential lots.