Queensland property group CFMG Capital is pleased to announce it has raised more than $20 million in 2023 to support its ongoing development pipeline across the southeast’s fastest-growing corridors as demand from investors for exposure to the State’s land market continues to grow.
The funds raised will be used to support a range of different projects including Riverleigh Logan Reserve, Farriers Creek Burpengary and Mallee Grove Jimboomba.
The company’s newest project, Riverleigh Logan Reserve, is a new 109-lot residential community to be created from a 7.49 hectare project site situated in the heart of a robust residential development precinct with completed projects immediately adjacent on two boundaries.
CFMG Capital has successfully completed three nearby residential developments and more than 700 residential lots in the Logan area since 2018, demonstrating a solid understanding of the local market fundamentals.
The company operates two core divisions; a residential communities development business with a pipeline of more than 2,200 lots and a funds management business that has raised more than $210 million in third-party equity.
CFMG Capital Group General Manager Andrew Thomson said the company had seen strong demand for all of its offers over the last six months as investors look for exposure to the growing Queensland economy and the continued demand for high-quality housing lots in growth areas.
“Riverleigh is typical of the projects that have been successful for us over many years with a relatively small number of lots located close to established projects and infrastructure,” he said.
“These projects allow us to bring homesites to market quickly in areas where we know there is solid demand from local buyers,” he said.
“The project is only 30 minutes south of the Brisbane CBD and just minutes from existing and planned infrastructure, including an expanded Coles and newly established Woolworths at the Park Ridge Town Centre.
Logan Reserve is located within the Logan City Council boundaries and has established itself as a significant economic and residential growth corridor.
Logan Reserve is a crucial location within Logan City Plan which includes a 25-year plan to deliver 70,000 new dwellings and 50,000 new jobs. There are currently more than $450 million of major infrastructure projects under construction, planned or completed in the area.
The Farriers Creek community in Burpengary is situated on a 12.1 hectare project site in Burpengary approximately 36 kilometres north of the Brisbane CBD.
Comprising in excess of 90 residential allotments ranging from 271m2 to 665m2 initial demand for the new residential home sites has been strong with 38 allotments pre-sold for a total value of $12.5 million.
The CFMG Land and Opportunity Fund is an unlisted managed investment scheme that invests in the development of residential land subdivision projects on a case-by-case basis. The Fund currently invests in 12 projects with a gross sales value of more than $367 million.
Since January 2021, new funds raised by the CFMG Land and Opportunity Fund have offered a targeted return ranging from 8.95%pa to 11.95%pa.
Mr Thomson said the Land and Opportunity Fund was a powerful tool for investors seeking exposure to Queensland’s land market.
“Even with a rising interest rates, the Fund’s return is quite attractive and only achievable through a combination of our internal development expertise, a commitment to putting returns to investors ahead of development profits and the expectation that the Queensland land market will continue to strengthen over the next two years,” he said.
“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.”