Meanwhile, in September 1952 another tank squadron was raised. This was known as Nucleus Squadron and, based in Holsworthy, New South Wales, with the purpose of forming the basis of a second tank unit which was to be named the 2nd Armoured Regiment. In 1954 the regiment received it first Ferret MK 1 Scout Car, enabling the raising of Reconnaissance Troop. The following year 1st Armoured Regiment received the Saracen Armoured Personnel Carrier, and it was at this time that the intention to form another tank unit was abandoned, and Nucleus Squadron subsequently returned to the regiment as its third squadron, designated C Squadron.