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CFMG Capital Rides Queensland Boom To Unlisted Property Investment Success

Queensland property group CFMG Capital continues to ride the success of Queensland’s residential land subdivision market, with the company maintaining its perfect record of returning 100% of investor capital at the targeted return in 2022. 

Since January 2022, CFMG Capital has returned $25 million to more than 500 investors across 9 different investments via its flagship CFMG Land & Opportunity Fund and the CFMG First Mortgage & Income  Fund unlisted managed investment schemes. 

CFMG Capital General Manager Andrew Thomson said the return of capital over the last 12 months had maintained the company’s perfect record for returning 100% of capital invested in addition to the advertised returns at the targeted rate. 

“While many things have changed over the last 12 months in the property market, we remain very bullish on the Queensland economy with strong underlying conditions, including low unemployment and high population growth,” he said. 

“CommSec’s recent State of the States report showed Queensland is the best-performing state in the  country and has benefitted from strong relative and absolute population growth, a solid job market and  buoyant overseas demand for energy resources, such as coal and natural gas.” 

Across all the indicators, Queensland is ahead of Tasmania which drops from first to second. South  Australia has lifted from fifth to third. NSW is now in joint fourth spot with Victoria, ahead of the ACT,  Western Australia and the Northern Territory. 

CFMG Capital is proud to have a proven track record of delivering over 2,000 completed residential lots with a gross value of over $400 million across multiple projects in Brisbane, Sydney and Melbourne. 

Mr Thomson said the Land & Opportunity Fund was a powerful tool for investors seeking exposure to alternative investment opportunities, and given relative performance over the last 15 years more investors should speak with their advisors about alternative opportunities, rather than the narrow focus on approved product lists and dealer group platforms. 

“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 putting returns to investors at the forefront of the decision-making process and the expectation that the Queensland development 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  consistent and targeted return policy give investors a healthy level of confidence that the returns will be  delivered.” 

CFMG Capital currently has three different investment options available to investors, with forecast target returns ranging from 6.85% per annum to 9.2% per annum. 

Mr Thomson said investment opportunities like the CFMG Land & Opportunity Fund were a sensible  alternative for investors looking for property exposure but not the risks associated by buying a single  property that is heavily leveraged and value upside relies on the broader property market performance  rather than actively value adding

“The Fund is based on exposure to dozens of blocks of land in a subdivision or across multiple projects and is not reliant on exponential growth in property prices, but rather value adding to assets through development, also providing diversification over direct residential property, which typically limits investors to one asset,” Mr Thomson said. 

CFMG Capital operates two core divisions; a residential communities development business with a  pipeline of more than 2,000 lots and a funds management business that has raised more than $180 million in third-party equity.

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