CFMG Capital Business Overview 2020 by CFMG_Capital

Business Overview 2020

CFMG Capital create long term value for investors through active investment and development of residential land sub-divisions. Through the CFMG Land & Opportunity Fund, investors are offered access to participate in residential development. The core focus of CFMG Capital is to create long term value for investors through disciplined acquisition and a conservative but realistic approach to investment. In a climate where residential real-estate sector indicators across the country point to a continued pick up in activity, spurred by a shortage of land supply it is anticipated that strong medium to long term earnings can continue to be achieved through property backed investments.

CFMG Land & Opportunity Fund The CFMG Land & Opportunity Fund is an unlisted managed investment scheme that invests in the development of residential land subdivision projects that meet the very specific CFMG Capital investment criteria. The Land & Opportunity Fund offers prospective investors access to residential land developments with the experience of the CFMG Capital team managing the project. The fund provides the ability to diversify and the peace of mind of a PDS/SPDS issued in an ASIC regulated environment. The fund offers investors the following benefits:

Fixed return per annum:

12% (net of all fees)

Fixed Investment terms

Minimum investment of just

$25,000 Â

Residential Communities CFMG Capital deliver aspirational addresses to emerging communities across Australia. CFMG Capital’s project pipeline is diversified in the Eastern Seaboard States having 1,200 lots under development or completed and a further 1,000 lots going through the planning and assessment process, creating a forward pipeline of $250m in gross retail value. CFMG Capital are continuously seeking to identify opportunities suitable to the CFMG Capital model. The specific criteria CFMG Capital use to asses a land development project opportunity include:

In addition to the project criteria, the following investment return criteria applies:

• Proximity to capital city or other major employment hubs;

• Forecast of a gross pre-tax return to investors (after all budgeted expenses) at an appropriate risk reward margin above the cash rate published by the Reserve Bank of Australia;

• Population growth & housing demand specific to the locality; • Local area demographics; • Proximity to transport networks; • Existing and/or planned education, recreation, retail and health amenities in the immediate vicinity.

• Debt finance at a conservative loan to independent valuation ratio.

Key Stats: 9 Have operated since 2008 9 $100+ million invested in residential land projects 9 1,000+ investors accross 9 91% of investors re-invest a range of investment with CFMG Capital opportunities

CFMG Capital Projects Creating residential communities in close proximity to major cities on the East Coast of Australia.

Project Overview CURRENT

(Part II)

186

RESIDENTIAL LOTS

COMPLETED

CREEKS EDGE OAKLAND POCKET

$37.2m GROSS REALISATION

LOMANDRA PARK MAYFAIR LANE SOLANDER BIRCHWOOD MIDDLETON PARK MIDDLETON PARK II HARRIES ROAD

BRISBANE GOLD COAST

CUNNINGHAM RISE

ELEVATE THE BROOK

SYDNEY

DAMARA DAMARA PARK

MELBOURNE

ACACIA VILLAGE THE MILLSTONE BROOKHAVEN/ALTITUDE EVERGREEN

Logan Reserve (QLD) This 10.35 hectare site will be developed by CFMG Capital to create a further 186 residential allotments to form an additional part of the existing CFMG Capital residential land development known as Middleton Park. Located just 30 minutes from the Brisbane CBD and less than an hour from Gold Coast beaches, construction commenced in 2019 and expected completion is 2021.

100

RESIDENTIAL LOTS

$24.3m

$38.7m

GROSS REALISATION

Ormeau Hills (QLD)

Bridgeman Downs (QLD)

This 5.7 hectare site is ideally located in an elevated location in Ormeau Hills, situated in the thriving northern Gold Coast corridor development zone.

This 6.4 hectare site located in the prestigious Bridgeman Downs, just 12km from Brisbaneâ&#x20AC;&#x2122;s CBD will be developed to create a boutique residential community. This project will service the significant demand for vacant residential land located within inner ring suburbs of major capital cities. Commenced in 2019 with an expected completion date in 2020.

Just 25km north of the Gold Coast CBD and 40km south of the Brisbane CBD, the site will be developed by CFMG Capital with expected completion in 2020.

RESIDENTIAL LOTS

$27.6m

$12.2m

GROSS REALISATION

Wollert (VIC)

Morayfield (QLD)

This 5.81 hectare site will be developed into an 84 lot residential community together with some associated retail and commercial uses. Located just 25km north of the Melbourne CBD, this project will be established within an already abundant collection of lifestyle amenity, health & education facilities, public transport infrastructure and major road networks. Commencing in 2020 with expected completion in 2022.

This 4.1 hectare site was purchased with an existing Development Approval in place and was delivered as a single stage development of just 80 residential lots. The site is ideally located in the heart of Morayfield, a key urban growth corridor in Brisbaneâ&#x20AC;&#x2122;s North. Construction commenced in early 2018 and completed in late 2018.

PARK

PLACE

141

RESIDENTIAL LOTS

$29.4m

$57.0m

Edmondson Park (NSW)

This 3.8 hectare site located 40km south west of the Sydney CBD was developed and managed by CFMG Capital to create Damara Park, the first stage of a broader scale development comprising of two parcels of adjoining land. Development was completed in 2016.

This 7.8 hectare site located 40km south west of the Sydney CBD adjoined an existing project developed and managed by CFMG Capital, forming the second stage of the two part development. The project was completed in 2016.

GROSS REALISATION

PARK PLACE

179

RESIDENTIAL LOTS

$36.8m

$9.7m

GROSS REALISATION

Park Ridge (QLD)

Morayfield (QLD)

This 11.4 hectare site is ideally located just 30 minutes from the Brisbane CBD and was developed by CFMG Capital into a 3 stage 179 allotments residential community. Situated in a key urban growth corridor, this project was completed in late 2019.

Oakland Pocket was a single stage development undertaken by CFMG Capital to create a 57 lot residential community. Located in the heart of Morayfield and surrounded by schools, shops and major transport infrastructure the site was purchased with an existing Development Approval in place and was completed in 2019.

150

303

RESIDENTIAL LOTS

$30.2m

$58.6m

GROSS REALISATION

Logan Reserve (QLD)

Strathtulloh (VIC)

This 8.47 hectare site was developed by CFMG Capital to create a 150 lot residential community in the middle of the key urban growth corridor of Logan Reserve. Located just 30 minutes from the Brisbane CBD and less than an hour from Gold Coast beaches, this project was completed in late 2019.

Located 35km west of the Melbourne CBD in one of Australiaâ&#x20AC;&#x2122;s fastest growing urban growth corridors, this 17.3 hectare site is being developed by CFMG Capital into a 303 lot residential community set for completion in 2020.

246

RESIDENTIAL LOTS

$45.6m

$52.2m

GROSS REALISATION

251

GROSS REALISATION

Sunbury (VIC)

Ormeau (QLD)

This elevated 47.3 hectare parcel of land is located 40 minutes from the Melbourne CBD and 20 minutes from Melbourne International Airport was developed by CFMG Capital and completed early 2018.

Located 40km south of the Brisbane CBD and 30km from Surfers Paradise, this 32.6 hectare site was developed and managed by CFMG Capital and completed during 2017.

221

144

RESIDENTIAL LOTS

$38.6m

$27.5m

GROSS REALISATION

Goodna (QLD)

Truganina (VIC)

Located 21km west of the Brisbane CBD and just 12km west of the Ipswich CBD, this 25.2 hectare site was developed by CFMG Capital and completed during 2017.

Located 20km south west of the Melbourne CBD, this 12 hectare site was developed by CFMG Capital and completed in 2015.

RESIDENTIAL LOTS

$7.8m

$19.6m

GROSS REALISATION

Rochedale (QLD)

Park Ridge (QLD)

Located in the prestigious suburb of Rochedale, just 17km from the Brisbane CBD â&#x20AC;&#x201C; this highly sought after 1.2 hectare parcel of prime inner ring vacant land will be developed by CFMG Capital into a 15 lot boutique residential project. Construction commenced late 2019 with expected completion in 2020.

This 4.9 hectare site, ideally located in a thriving growth corridor, will be developed into an 89 lot residential community. Purchased with a Development Approval in place, this project is poised perfectly to take advantage of the momentum in the region through two recently completed CFMG Capital developments in the immediate vicinity. Construction commenced in 2019 and expected completion is 2021.

Harries Road

275

RESIDENTIAL UNITS

Coorparoo (QLD) The Coorparoo Residential Opportunity Fund involved the purchase of an existing underutilised tenanted retail/commercial asset identified as having potential for capital growth through residential development and approvals. The property had the benefit of existing rental income creating a passing yield while seeking to make improvements to realise capital growth. CFMG Capital improved the leasing outcomes and identified the opportunity to develop a 12 storey medium rise residential complex comprising of 275 units. As a result, the trust asset was sold in June 2015 generating a significant return on equity investment.

REITs CFMG Capital is authorised to manage these funds which may hold the following types of assets:

Direct Real Property

Financial Assets

Opportunity Funds

CFMG Capital are continuously seeking to identify opportunities suitable to the CFMG Capital investment model.

CFMG Capital offers two very distinct categories of investments. Equity & Income Funds

Opportunity Funds

The specific investment criteria CFMG Capital use to assess an asset for Equity & Income funds are:

The investment criteria CFMG Capital use to assess an asset for Opportunity funds are:

• Forecast of a gross pre-tax return to investors (after all budgeted expenses) at an appropriate risk reward margin above the cash rate published by the Reserve Bank of Australia;

• Significant opportunity to ‘value add’ to the asset via Development Approval, capital works or re-zoning;

• Investment returns paid to investors quarterly; • Debt finance at a conservative loan to independent valuation ratio; • Tenancy profile must include quality tenants; • Strong WALE with the term exceeding the minimum investment term prior to any option periods needing to be exercised

• Significant capital growth on the asset should ‘value add’ be successful; • Forecast of a gross pre-tax return to investors (after all budgeted expenses) at an appropriate risk reward margin above the cash rate published by the Reserve Bank of Australia

Management The Directors and Senior Management have a strong history in real estate investment and believe there is an opportunity at this point in the property cycle to create real estate linked investment opportunities for experienced investors, and in turn to share in the returns from managing those investments through various income streams. The Management Team include staff who are highly skilled and experienced individuals in the fields of funds management, finance, property development, management, sales and marketing. CFMG Capital has full service research, acquisitions, legal and project marketing teams to support and guide managed projects from inception through to completion. Further, CFMG Capital has employees with experience in the fields of accountancy and finance, corporate governance and compliance to enable effective discharge of responsibilities in the areas of corporate governance, social responsibility and sustainability. Key management personnel of the group are:

ANDREW THOMSON General Manager

PHILIPPA BOMBA Commercial Finance Manager

With close to 20 years experience in management, marketing and strategy development, Andrew brings to CFMG Capital an in-depth understanding of property and financial services sectors through senior management, marketing and operations roles at AMP, Devine Limited and Ausbuild.

Philippa is a highly experienced finance manager responsible for the financial modelling, management and administration of CFMG Capital projects. Philippa has over 10 yearsâ&#x20AC;&#x2122; experience in funds management and residential land development having held senior finance positions with White & Partners, CBRE & Stockland.

With significant involvement in the sales, marketing and leasing of in excess of $2.5 billion worth of residential, retail and commercial property in Queensland, New South Wales, Victoria and South Australia, Andrew brings experience throughout project lifespan from acquisition to final settlements.

Philippa is CPA qualified and holds a Bachelor of Business from Queensland University of Technology majoring in Accounting and Banking & Finance.

Andrew has also worked in large organisations in specialist marketing positions such as Suncorp & Australian Insurance Holdings and holds a Bachelor of Business (Management) specialising in Marketing, Human Resource Management and Industrial Relations and has commenced post graduate study in Property Economics.

Board

SCOTT WATSON Managing Director - CFMG Capital Scott is a founding Director of both the residential land development and income fund businesses of CFMG Capital. After five years as a solicitor in private practice advising a wide range of clients including State Government departments, publicly listed and private companies, Scott joined a private development and financial services group where his responsibilities included management of the groupâ&#x20AC;&#x2122;s legal requirements and obligations, project management and broad acre land acquisitions. From 2008, Scott has been actively involved in overseeing the governance and compliance obligations in relation to residential land development companies. Scott holds Bachelor degrees in Law and Accountancy, a Graduate Diploma in Urban and Regional Planning and has more than 15 years broad experience in the property development and finance industries.

ROSS STILES Independent Director & Chairman CFMG Capital During a career spanning more than 40 years, Ross has held a number of senior executive positions with a strong emphasis on the Financial Services sector, particularly with a Property and Real Estate background. In 1998, Ross was a founding partner and Managing Director of ASX Top 200 company Cromwell Corporation Limited (ASX Code CMW), now known as Cromwell Property Group, and managed and directed the growth of the Company, now one of Australiaâ&#x20AC;&#x2122;s largest Real Estate Investment Trusts with a market capitalisation of more than $2 billion as at 31 December 2017, and total assets under management of $11.2 billion. Apart from his role of Managing Director at Cromwell, Ross was Compliance Director and Responsible Manager for the Managed Investment Schemes the company promoted. Since his retirement from Cromwell in 2008, Ross has maintained his interest in property and real estate, undertaking a number of residential and industrial land developments in his own right.

WAYNE HAMBURGER Independent Director - CFMG Capital Wayne has 18 years lending experience working with various types of loan scenarios and debt structuring. Wayne has held state and national manager positions with finance brokerage and property companies. With experience in corporate governance and compliance as a Responsible Manager across mortgage broking and financial planning. Wayne has had extensive dealings with new land estates throughout Australia. Wayne holds a Diploma of Financial Services (Finance / Mortgage Broking Management), Advanced Diploma of Financial Services (Financial Planning), Advanced Diploma of Business (Accounting), Graduate Certificate in Management and Graduate Diploma of Commerce. He is currently studying a Master of Commerce (Financial Planning). Wayne is an MFAA Accredited Finance Broker with the Mortgage & Finance Association of Australia, Associate Fellow of the Australian Institute of Management and a Justice of the Peace (Qualified).

BARRIE ADAMS Independent Director

JIM FRAYNE Independent Director

JASON MATIGIAN Independent Director

Barrie has enjoyed his careers in the private sector and with the Commonwealth and State Governments. He commenced with the Shell Group of Companies in Brisbane then Sydney and Melbourne which culminated in his appointment as the South Pacific Audit Manager.

Jim has over 40 years’ experience in chartered accountancy in audit and corporate services fields.

Jason has had a broad range of property experience across all sectors including residential, commercial, retail, industrial, rural, special purpose and mixed use. This range of experience has seen Jason and his Valuation Practice (JPM Valuers & Property Consultants) actively providing advice to the public, private and government bodies across Victoria, New South Wales, Queensland and Northern Territory.

Barrie then returned to Brisbane where he held a number of senior positions in the Corporate Affairs Office, including in 1989, his appointment as Director, Corporate Development and Operations. He was appointed as Queensland’s first Regional Commissioner of the Australian Securities and Investments Commission (ASIC) in January 1991 until March 2000. In January 2000, he was awarded the Public Service Medal for outstanding public service as Regional Commissioner in Queensland. Barrie has been an active member of CPA Australia and was a Director on the Board of CPA Australia for 3 years. Since leaving ASIC, he has held board positions on listed and unlisted public companies and not for profit companies. He continues to hold board positions. Barrie is the Chairman of three Compliance Committees and still chairs an Audit & Risk Committees.

Mr Frayne was appointed as a partner of PKF Chartered Accountants and Business Advisers (now BDO Chartered Accountants) in 1983 and from that time headed up the Audit and Assurance Division of PKF Brisbane until his retirement in June 2006. He is a Director of Aveo Limited and Black & White Holdings Limited.

Prior to Jason setting up his own valuation practice he held positions with Brisbane Real Estate specialising in site acquisition and asset realisation for receivers; and approximately 10 years with Australia’s largest valuation and advisory firm Herron Todd White Valuers. Jason holds a Bachelor of Applied Science (Property), is a Certified Practicing Valuer in Queensland and New South Wales and an Associate member of the Australian Property Institute.

Barrie delivers presentations on Corporate Governance and Ethics and Risk Management, Directors’ Duties and Corporate Social Responsibility. 19

PO Box 663 Level 2, 117 McLachlan St Fortitude Valley QLD 4006

P 1800 155 526 E info@cfmgcapital.com.au W cfmgcapital.com.au