A Queensland-based unlisted managed investment firm is launching a new pooled mortgage fund, offering the chance to invest across Queensland and Victorian markets.
CFMG Capital has introduced a new private debt fund to invest in first mortgages across its portfolio of 16 land development projects, delivering monthly returns beginning at a target rate of 8.25 per cent per annum (net of all fees*).
This is the third fund launched by the group, which is targeting a raise of $200 million and has set the minimum investment at $5,000.
The firm, which has two arms, operates a funds management business as well as a residential communities development business. The latter currently has a pipeline of more than 1,700 lots in the works across Queensland and Victoria.
With interest in Australian property investment high, the firm is billing the new fund as an opportunity for investors to get into the market without needing to secure the financing to buy a property directly.
CFMG Capital group general manager, Andrew Thomson, said the launch of the new fund comes as a direct result of customer feedback requesting access to a broader diversified blend of the company’s portfolio.
“Investors can be confident their funds are spread across a diverse range of projects and locations,” he said of the monthly income fund (MIF).
“Investors also wanted a more regular income stream, so we have established the fund with monthly distributions with a targeted rate of return of 8.25 per cent per annum to be reviewed monthly,” he explained.
Noting that the company has maintained a perfect record for returning 100 per cent of capital to investors at the targeted rate, Thomson said that the outlook remains strong for the performance of CFMG Capital’s latest offering.
“We are experiencing high levels of enquiry across all of our active projects, with buyers moving quickly to lock in home sites as they come to market,” he said. “Population growth remains strong and supply constraints are persisting. We expect these conditions to continue for at least the rest of 2024 and into next year,” he said.
The new investment opportunity will also help the firm continue to develop its residential capacity, Thomson added.
“We have a strategic pipeline of projects to be delivered over the next few years, and the support of our investors is critical to ensuring we have a diversified mix of funding to support the rollout,” he said.
He also billed it as a more streamlined, time-efficient process of getting on the property ladder.
“MIF will allow investors to diversify their portfolio with exposure to the Queensland and Victorian land markets without going through the time and expense of buying a single property,” Thomson said.