This article is from the Australian Property Journal archive
CFMG Capital has expanded its Queensland development portfolio with $20 million worth of acquisitions at Morayfield and Burpengary in Brisbane’s northern growth corridor.
The new sites will help replenish the company’s development pipeline with an additional 285 lots. In the middle of the year, it acquired a Sunshine Coast sites and two additional parcels in the northern Brisbane corridor.
Its total project pipeline across south east Queensland and Melbourne is now more than 1,500 allotments with a total value of more than $450 million.
Andrew Thomson, CFMG Capital general manager said the new sites provided a good opportunity to add new lots after selling 545 lots valued at $156 million in 2021.
“We are now reaching the stage we need to replenish our pipeline, particularly in Queensland, to be ready for the next stage of growth,” he said.
“Migration to Queensland is approaching the best levels in years, which means strong demand for new house and land in high growth corridors.”
Queensland led the nation for population growth in the 12 months to March, while data from Oliver Hume shows south-east Queensland land stock has dropped by nearly 70% over the past 12 months. Only 396 lots were on the market in September, compared to 1,299 a year earlier.
CFMG spent $13 million on the Morayfield site, which is made up of five different sites on Anderson Road totaling just over 10 hectares of land, about 40 kilometres north of Brisbane. The company has plans and received preliminary approval to develop a new $44 million residential community, dubbed Arbourwood, comprising 180 home sites.
Home sites range from 225 sqm to 558 sqm with an overall average land area of approximately 302 sqm.
Subject to final approvals, CFMG Capital expects to start construction on the project in mid-2022 with completion by the end of 2023.
CFMG Capital has developed two previous projects – Oakland Pocket and Creeks Edge – in Morayfield and was confident its latest would also attract the same strong interest.
“The project is surrounded by established residential homes; the local high school and primary school are less than two kilometres away; and, the train station is about one kilometre north – so there will be plenty of interest from families looking to upgrade to a new home,” Thomson said.
CFMG Capital is also in the process of finalising the purchase of adjoining Burpengary sites, totalling 13.1 hectares, on Coutts Drive. They have been acquired for a total of $7.4 million and will be developed, subject to approvals, into a 105 lot project called Farriers Creek that will be launched next year.
“Burpengary is a strong, reliable growth suburb with a range of family-friendly facilities and transport links,” Thomson said.
“We think it is a really promising area that has the potential to be a start performer for buyers who get into the market at a good price.”
The acquisitions are funded through new capital raisings via the CFMG Land & Opportunity Fund and the CFMG First Mortgage Income Fund. Since January this year, new funds raised by the CFMG Land & Opportunity Fund have offered a targeted return ranging from 8.95% to 10.95%
