Queensland fund manager CFMG Capital has launched a capital raising to fund development of a $26 million residential community on a newly-acquired 3.37ha site at Rochedale, south of Brisbane.
The latest offering, the 19th via the company’s CFMG Land and Opportunity Fund, has set a target return of 9.55% (net of all fees) with a 24-month investment term. The targeted overall return over the term is 19.1%.
The site on Farley Road, Rochedale, will be developed into a 27-lot gated community that is expected to hit the market in early 2026 with prices starting from $900,000.
CFMG Capital Group General Manager Andrew Thomson said CFMG Capital had successfully completed two nearby residential developments in Rochedale via the Land & Opportunity Fund and the new site provided a prime opportunity to benefit from existing market momentum and experience.
“The Farley Road project will service the significant demand for vacant and ready to build residential land located within the inner ring suburb of a major capital city,” he said.
“Whilst offering close proximity to the Brisbane CBD, Farley Road also provides convenient access to both the North and South of Brisbane via the nearby Gateway Motorway, with access within 1.5km.”
“All major services such as power, communications, mains sewer and town water are available on the subject site doorstep and other necessary amenities including retail, education, childcare, public transport and recreational parks and clubs are also in immediate proximity.”
CFMG Capital operates two core divisions; a residential communities development business with a pipeline of more than 2,200 lots and a funds management business that operates three different private credit funds.
The company launched its first credit fund in 2016 and have to date raised $163 million of investor capital across a suite of different private credit funds and returned $52.8 million back to investors.
CFMG Capital is also developing the nearby Sovereign Estates project on Grieve Road, where large homesites start from more than $2 million. The project is expected to be fully titled in late September 2024, allowing buyers to start construction.
To date, CFMG Residential Communities has invested more than $22 million in Rochedale across the three different projects. The first stage of the company’s Mayfair Lane project has been completed, and the second stage is nearing final development approval.