2026

Quarterly update

Welcome to

Napoleon q3 update:

The broader market over the past quarter has continued to remain challenging, with persistent inflation and more cautious buyer sentiment.

Against that backdrop, we are pleased with the progress made across the Napoleon portfolio during Q3 for our projects.

Importantly, a number of our projects are now moving into the later stages of construction completion, where the quality and point of difference in what we have been building is becoming increasingly visible.

While buyers remain cautious in their decision-making, we are continuing to see solid sales results in our areas for high-quality homes, giving us confidence that well-designed and built homes in strong locations will continue to attract demand.

Our focus throughout the quarter has been straightforward: keep projects progressing, protect value, maintain flexibility around sales timing, and continue strengthening the underlying portfolio mix with another 2 acquisitions of rooming houses.

Key highlights from Q3 include:

Strong construction progress across the portfolio, with some of our key projects now approaching completion and the finish quality of the homes becoming increasingly apparent.
Fitzroy North continuing to take shape as a standout project, with the architectural detailing, rooftop terraces, automated shade devices and high-performance sustainability features creating a product that is genuinely differentiated within the local market.
Strong leasing performance across our completed rooming-house portfolio. Recently completed projects have leased quickly and rental levels have continued to strengthen.
Progress across the next generation of projects, including Thornbury, Fitzroy North and other pipeline developments, ensuring that we continue to build momentum beyond the projects currently nearing completion.

Construction pipelines across Melbourne have reduced significantly, new housing supply remains constrained, rents remain strong and the number of high-quality new homes coming to market in established inner-Melbourne locations remains limited. We believe this creates a favourable position for the projects we are now bringing toward completion.

The next two quarters are particularly important for Napoleon, with some of our key projects moving through completion, settlement and sales.

While we remain realistic about the broader economic environment, we are optimistic about the position of the business and the quality of the assets we are delivering.

As always, we appreciate the continued support and look forward to sharing what we expect will be a very active period for Napoleon over the coming months.

BALLANTYNE

Stage - Construction Started

Purchase
RFI Submission
Planning Permit
Site Settlement
Building Permit
Construction Start
Construction Fixing
Landscape
Sale

We have worked through a number of significant council and approval challenges at Ballantyne over the past quarter and are very pleased to now have the key issues resolved.

The revised outfall drainage design has been approved, the building permit is in place, and works are now progressing on the in-ground plumbing in preparation for the slab pour, which is expected in the next couple of weeks.

It has also been encouraging to have continued support from the neighbouring properties, who have taken a genuine interest in the project and enjoyed seeing the progress on site. With the major approval hurdles now behind us, we are looking forward to seeing the homes take shape quickly from here.

BRUNOS

Current Stage - Pre construction

Purchase
RFI Submission
Planning Permit
Site Settlement
Building Permit
Construction Start
Construction Fixing
Landscape
Sale

We have now settled on the Brunos site and are progressing through the final stages of approvals for demolition and the building permit.

Importantly, we have achieved a very strong design outcome for the site thanks to the help of our town planner and architect. The approval process has allowed us to refine the design and maximise the potential of the property with double garages facing away from the main street and a nice outlook to Nonnas.

In the meantime, the site has also been put to good use, providing storage for building materials required for the final stages of Nonnas and serving as a convenient base for the team while those works are completed.

With settlement now complete and the design resolved, the focus is firmly on finalising the remaining approvals and moving the project into demolition and construction.

GORDO

Current Stage - Subdivision

Purchase
RFI Submission
Planning Permit
Site Settlement
Building Permit
Construction Start
Construction Fixing
Landscape
Sale

While council and approval timeframes have taken longer than anticipated, we are now in the final stages of the subdivision process and moving closer to commencing construction.

The required site works for the outfall drain and crossovers have now been completed, clearing an important final step toward issuing the separate titles.

Completing the subdivision ahead of construction will give us significantly greater flexibility as the project progresses, with each dwelling separately titled from the outset. This provides us with the option to sell either side independently during construction and gives us greater flexibility around sales, funding and capital management.

While the approval process has required some patience, we are pleased to now be approaching the point where the project can move from approvals into construction.

PENDER

Current Stage - Construction

Purchase
RFI Submission
Planning Permit
Site Settlement
Building Permit
Construction Start
Construction Fixing
Landscape
Sale

Construction at Pender is progressing well, and we are pleased to see the project moving into a more visible phase of the build.

The slab has now been poured, with the in-ground electrical and plumbing works also well advanced. Framing is expected to commence within the next couple of weeks, which will be an important milestone as the scale and form of the five homes begins to take shape.

GILLIES

Current Stage - Fixing

Purchase
RFI Submission
Planning Permit
Site Settlement
Building Permit
Construction Start
Construction Fixing
Landscape
Sale

Plaster and staircases are now installed, with joinery due to commence shortly.

One of the most exciting milestones this quarter has been the removal of the scaffold, which has completely changed the way the project presents. The external architecture, material palette and cladding details are now fully visible, and the homes are looking exceptional.

With the buildings opened up visually, buyers can now properly appreciate the scale, proportions and overall quality of the design in a way that was difficult to see during the earlier stages of construction.

We plan to re-launch the sales campaign over the next couple of weeks once the yards are cleared and the presentation is further improved. We believe the timing is ideal, as the project is now at the stage where buyers can begin to genuinely experience the finished product and understand the value being delivered.

NONNAS

Current Stage - Fixing

Purchase
RFI Submission
Planning Permit
Site Settlement
Building Permit
Construction Start
Construction Fixing
Landscape
Sale

Nonnas is now on the home stretch, with the project continuing to take shape quickly.

Joinery, stone and appliances have now been installed, with painting due to commence shortly. From there, attention will turn to completing the remaining external works, services and final detailing as we move toward practical completion.

The quality and character of the finished homes are now becoming increasingly evident, which is an important milestone from both a delivery and sales perspective.

The project is currently being promoted through a number of interstate and international sales channels, with buyer engagement continuing. We are also preparing to launch a targeted local sales campaign shortly, aimed at building further momentum and securing additional sales as the homes near completion. Despite the tough market, we have seen some encouraging results for quality homes in the area which is encouraging for our launch.

HOWELL

Current Stage - Demo

This project will run in parallel with Beaumont, with construction expected to commence within the next couple of weeks.

We have incorporated a number of learnings from the successful delivery and leasing of Showers Street into the design, resulting in an improved layout. The focus has been on creating well-proportioned rooms, strong communal spaces and an overall living environment that appeals to high-quality, long-term tenants.

Given the leasing performance and tenant profile we have achieved at Showers Street, we are confident this refined design will position the project strongly once completed and brought to market.

BEAUMONT

Current Stage - Demo

Beaumont is now ready to move into construction, with the builder mobilised and demolition scheduled to commence next week.

This project has also been an important first test of our subdivision model for rooming houses, and we are very pleased with the outcome. Both dwellings have been designed to operate independently, with separate access and strong privacy, while still retaining generous outdoor areas comparable to our single-dwelling rooming house projects.

We see this as a particularly positive result, as it allows us to increase the efficiency and value of the site without compromising the quality of the accommodation or the amenity for future residents.

Following demolition, construction will commence immediately and we look forward to seeing the project take shape over the coming months.

PORT

Current Stage - Planning

Another of our latest rooming house purchases. This one in the premium suburb of Newport. We are in the final stages of the working drawings for this one and planning approval. The plan is to use this project as a test for the higher-end rental demand for this area, and we have been working with Chamberlain Architects on a higher-spec interior design.

PURCHES

Current Stage - Working Drawings

Our latest purchase following the same strategy as Beaumont, where we are building 2 Rooming Houses on one block. We are continuing to look at new areas that have less rooming houses, but still close to stations, hospitals, and other major employment hubs driving demand for this type of product. We are have received the planning permit for subdivision and are now progressing the working drawings to optimise the room layouts.