- The funds will go towards new land projects
- Follows the return of $25M to investors during the past year
- Currently, the CMFG land & Opportunity Funds holds investment in eight different projects, with a gross value of over $210 million
Queensland property group CFMG Capital has announced it expects to raise $40 million.
The new funds will go towards the development of new land projects over the next twelve months following the return of $25 million to investors over the last 12 months, with $13 million occurring in the last three months alone.
The next capital raising for the CMFG Land & Opportunity Fund is expected to occur this month, with $8 million to be raised to fund the next stage of the Farriers Creek project, which will be located at Burpengary, north of Brisbane.
This fund is an unlisted managed investment scheme that invests in developing land subdivision projects. Currently, it holds investments in eight different projects with a gross sales value of over $210 million.
All capital returned
Andrew Thomson, CFMG Capital General Manager, said the return of capital over the past year highlights the company’s record of returning 100% of capital invested at the targeted rate of return.
“While many things have changed since last year, we remain very bullish on the Queensland land market with strong underlying conditions, including low unemployment and high population growth,” he said.
“We are committed to retaining our record for delivering on our targeted returns and think our track record will serve us well as we head into a new phase for the property market.”
Since January 2021, new funds raised offer a targeted return ranging from 8.95% to 11.95%. About $20 million worth of existing funds are coming to the end of their term in FY23, with historically a large portion of expiring investments beign recycled into new opportunities.
“We would expect a large portion of these maturing investments to be rolled over into new CFMG Land & Opportunity Fund investments as we bring them to market,” he said.
“We are grateful to have large and loyal investor base that understands our strategy and how we go about delivering returns.”
“Even with rising interest rates, the Fund’s return is quite attractive and only achievable through a combination of our internal development expertise, a commitment to prioritising investor interests and the expectation that the Queensland land market will continue to strengthen over the next two years,”
Andrew Thomson, CFMG Capital General Manager
“In contrast to volatile property investments based on assumptions, CFMG Capital’s fund duration and fixed return policy give investors a healthy level of confidence that the returns will be delivered.”
CFMG Capital operates a residential communities development core division which has a pipeline of over 2,000 lots along with a funds management business that has raised over $180 million in third-party equity.
So far this year, new projects have been launched at Caboolture (Pumicestone Pocket), Burpengary (Farriers Creek) and Park Ridge (Birchwood).
The Pumicestone Pocket project was 80% sold in two weeks, and achieved $12.8 million in sales, while Farriers Creek has achieved 23 sales worth $7.5 million since launched in March 2022.
