This article is from the Australian Property Journal archive
QUEENSLAND property group CFMG Capital has successfully raised $15.2 million to support the growth of its development pipeline across the sunshine state.
The capital raising was closed after the group garnered $15 million in new investments over six months, the funds will support the current pipeline of more than 2,200 development lots.
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 has raised more than $210 million in third-party equity.
The lion’s share of the funds raised will go towards the development of the next stage of their Arbourwood project at Morayfield, located north of Brisbane. The Arbourwood 1 subscription is now closed.
“We have a strategic pipeline of projects to be delivered over the next few years, and the support of our investors is critical to the ensuring we have a diversified mix of funding to support the rollout,” said Andrew Thomson, general manager at CFMG Capital Group.
“Despite the current challenges presented by rising interest rates, we remain very optimistic about the long-term potential of the Queensland land market with strong underlying conditions, including low unemployment and high population growth.”
The group has repaid over $8.25 million to its investors since October 2022, with the new funds raised for its flagship investment vehicles, the CFMG Land and Opportunity Fund and the CFMG First Mortgage and Income Fund.
“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,” added Thomson.
The unlisted managed investment scheme investments in the development of residential land subdivision projects on a case-by-case basis and currently has investments across 12 projects with a gross sales value over $367 million.
Since January 2021, new funds raised by the CFMG Land and Opportunity Fund have offered a targeted return ranging from 8.95% to 11.95%, while the Arbourwood 1 subscription has a targeted return of 9.50% over 24 months.
“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,” concluded Thomson.
“We are grateful to have large and loyal investor base that understands our strategy and how we go about delivering returns. That is why so many of them choose to re-invest their capital into a new CFMG subscription.”
