Desane Group Holdings Advances Penrith and Leichhardt Developments

Desane advances Penrith and Leichhardt developments toward key construction milestones

Desane Group Holdings (ASX: DGH) has provided a development portfolio update confirming progress across two active sites, with its 1.165ha Penrith industrial project securing Development Approval and the Leichhardt redevelopment advancing structural works for a national tenant.

The update, dated 27 July 2026, positions the Penrith development, comprising 44 industrial strata units, for construction commencement during H2 2026, while the Leichhardt site progresses a purpose-built retail tenancy for Petbarn under a long-term lease.

Both milestones reflect the Company’s stated strategy of unlocking value from its property assets through active development, leasing and asset management, with the objective of strengthening recurring investment income over time.

91 Thornton Drive, Penrith — 44 industrial strata units approved

The Company’s 1.165ha industrial development at 91 Thornton Drive, Penrith has reached several project milestones as it moves closer to construction.

Key achievements at the site include:

• Development Approval secured by way of a Complying Development Certificate (CDC).

• Documentation for the design and construction contract with Full Tilt Constructions nearing completion.

• Construction expected to commence during the second half of 2026, subject to final contractual matters and completion of the design.

The project comprises 44 industrial strata units and is described by the Company as “one of the Company’s most significant value creation opportunities.” Industrial strata units are individually titled units within a larger development, which can be sold or leased separately.

322 Norton Street, Leichhardt — purpose-built Petbarn tenancy progressing

Construction continues to progress at the Company’s redevelopment of 322 Norton Street, Leichhardt, with a number of stages now advanced.

Progress achieved since works commenced includes:

• Completion of the demolition and bulk excavation works.

• Substantial completion of environmental and validation activities.

• Continued coordination with national tenant Petbarn in relation to tenancy requirements.

• Progression of structural works in accordance with the construction program.

The development will deliver a purpose-built retail tenancy for Petbarn under a long-term lease and, upon completion, will further strengthen the Company’s recurring investment income. Securing an established national tenant on a long-term lease provides a source of predictable rental income once the asset is delivered.

What “unlocking value” means for a property developer like Desane

A property investment and development company such as Desane can create shareholder value through two related but distinct activities. Understanding the difference helps clarify why these milestones matter.

The first is development, the build-out of a site from approval through to a completed asset. The second is recurring investment income, the ongoing rental returns generated once a completed asset is leased to tenants. Development activity builds the asset; leasing it generates predictable income.

Securing a national tenant like Petbarn on a long-term lease can de-risk a project. A committed tenant on a lease provides greater certainty around future rental income before and after completion, reducing the risk of a completed asset sitting vacant.

A Development Approval, including one obtained via a Complying Development Certificate (CDC), is a meaningful de-risking milestone. It confirms a project can proceed to construction, removing a key planning hurdle before capital is committed to building.

Moving projects sequentially from approval to construction to completion is where value is typically realised for shareholders. Each stage brings a project closer to either a saleable product or an income-producing asset.

Investment thesis and outlook

The twin milestones at Penrith and Leichhardt tie into Desane’s broader strategy of progressing its development pipeline toward strengthened recurring income and long-term value.

Rick Montrone, Managing Director & CEO

“The Board remains focused on disciplined execution across the Company’s property portfolio. During the past six months we have achieved several important development milestones, particularly at Penrith and Leichhardt, which continue to progress towards construction commencement and completion respectively. As these projects are delivered, the Company expects they will further strengthen recurring income and enhance long-term shareholder value, while maintaining a disciplined approach to capital allocation.”

Looking ahead, the Company has flagged the following next steps:

The Desane chair succession announced in July 2026, with John Sheehan AM retiring after 34 years and Peter Krejci designated as incoming Chairman following the November AGM, signals continuity in strategy rather than a pivot, with Krejci publicly committing to the Company’s existing development-focused approach.

• Penrith: construction commencement expected in H2 2026, subject to final contractual matters and completion of the design.

• Leichhardt: continued structural works progressing toward completion and Petbarn tenancy handover.

• The Company will continue to update shareholders as material milestones are achieved.

With both projects advancing through key stages, the pipeline is positioned to support the Company’s objective of enhancing recurring income and long-term shareholder value, subject to the execution risks that accompany any development program.

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