CFMG unveils Ormeau Hills investment offer with fixed 12% return

Queensland property group CFMG Capital has unveiled their latest investment opportunity from its $200 million CFMG Land & Opportunity Fund, seeking to raise $3 million for a 100-lot community between Brisbane and the Gold Coast.

The new project, Elevate, will be located on a 5.7-hectare site at Ormeau Hills which was recently acquired for its strategic positioning in the thriving development corridor between Brisbane and the Gold Coast.

The CFMG Land & 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 holds investments in seven different projects with a gross sales value of more than $200 million.

The Product Disclosure Statement (PDS) for the Elevate project indicates a 12% fixed return per annum over the two-year fixed investment term.

CFMG Capital General Manager Andrew Thomson said the property was settled in June 2018, with a development approval for 96 allotments already in place, with plans to apply for amendments which will allow for Elevate's 100 total lots.

Mr Thomson said the Land & Opportunity Fund was a powerful tool for investors seeking exposure to Queensland's residential land market.

"The Fund's fixed 12% per annum return is quite attractive in a low interest rate environment 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 Queensland land market will continue to strengthen over the next two years," he said.

"Investors also receive the return on their investment on a fixed maturity date - typically after 18 to 36 months.

"In contrast to volatile property investments based on assumptions, CFMG Capital's fund duration and fixed return policy gives investors a healthy level of confidence that the returns will be delivered."

Mr Thomson said managed investment schemes like the CFMG Land & Opportunity Fund were a sensible alternative for investors looking for property exposure but not the risks associated by directly buying a single property that is heavily leveraged.

"The Fund is based on exposure to dozens of blocks of land in a subdivision or across multiple projects, providing diversification over direct residential property which typically limits investors to one asset," Mr Thomson said.

"CFMG Capital is also a solid investment due to the strict criteria we adhere to before acquiring land to maintain value over the long term," Mr Thomson said.

"Our entire business model is based around securing land with proximity to a major capital city, existing and proposed competing land estates and key planned infrastructure projects.

"We also take population growth and demographics of the locality into account, and ensure investors can secure opportunities in areas with employment opportunities, lifestyle choices like schools, transportation and recreation," he said.

CFMG Capital's Elevate site in Ormeau Hills is 25 kilometres north of the Gold Coast CBD and 40 kilometres south of the Brisbane CBD, and is within one kilometre of the existing Ormeau Town Centre which features a Woolworths, IGA, service centre, health care and a range of specialty stores.

The future North Ormeau Town Centre is also currently under construction 500 metres away with Coles confirmed as the major tenant.

Ormeau Hills has also earned it title as a growth area from the demand generated by the proximity of major transport infrastructure such as the M1 and Gold Coast bus routes, nearby open space and parkland and key employment nodes including the 127 hectare Yatala Enterprise Area, which is projected to inject $1 billion into the local economy over the next decade.

Stage one subdivision works on the Ormeau land are planned for October 2018 and will carry on through 2019, with registration of allotments taking place April 2019 and final stage one settlement later in the year.