CFMG Capital Business Overview 2021 by CFMG_Capital

Business Overview 2021

CFMG Capital

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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.

BUSINESS OVERVIEW 2021

Solander, Park Ridge QLD

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:

CFMG Capital

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Lomandra Park, Bridgeman Downs QLD

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 1,500 lots going through the planning and assessment process, creating a forward pipeline of $330m 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:

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Proximity to capital city or other major employment hubs;

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Population growth & housing demand specific to the locality;

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Local area demographics;

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Proximity to transport networks;

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Existing and/or planned education, recreation, retail and health amenities in the immediate vicinity.

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

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;

•

Debt finance at a conservative loan to independent valuation ratio.

BUSINESS OVERVIEW 2021

Elevate, Ormeau Hills QLD

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

CFMG Capital

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CURRENT

COMPLETED

BIRCHWOOD

CREEKS EDGE

LOMANDRA PARK

OAKLAND POCKET

MAYFAIR LANE

HARRIES ROAD

MIDDLETON PARK

SOLANDER

CUNNINGHAM RISE

ELEVATE

THE BROOK

DAMARA

DAMARA PARK

ACACIA VILLAGE

THE MILLSTONE

BROOKHAVEN/ALTITUDE

EVERGREEN

CFMG Capital Projects CREATING RESIDENTIAL COMMUNITIES IN CLOSE PROXIMITY TO MAJOR CITIES ON THE EAST COAST OF AUSTRALIA.

BUSINESS OVERVIEW 2021

(Part II)

186

RESIDENTIAL LOTS

$38.6m

$13.8m

GROSS REALISATION

Logan Reserve (QLD)

Ormeau Hills (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.

This 05.7 hectare site is ideally located in an elevated location in Ormeau Hills, situated in the thriving northern Gold Coast corridor development zone. 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 2021.

Stage 3 Stage 2

CFMG Capital

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RESIDENTIAL LOTS

$18.8m

$15.2m

GROSS REALISATION

Bridgeman Downs (QLD)

This 8.6 hectare site located in the prestigious Bridgeman Downs, just 12km from Brisbane’s CBD will be developed to create a boutique residential community. This project will service the significant demand for vacant residential land located within the inner ring suburb of Brisbane. Commenced in 2020 with an expected completion date in 2021.

This 2.02 hectare site located in the prestigious Bridgeman Downs, just 12km from Brisbane’s CBD will be developed to create a boutique residential community. This project will service the significant demand for vacant residential land located within the inner ring suburb of Brisbane. Commencing 2021 with an expected completion date in 2022.

BUSINESS OVERVIEW 2021

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 – this highly sought after 1.2 hectare parcel of prime inner ring vacant land has been developed by CFMG Capital into a 15 lot boutique residential project. Construction commenced late 2019 with expected completion in 2021.

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.

CFMG Capital

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RESIDENTIAL LOTS

$27.6m

$58.6m

GROSS REALISATION

303

GROSS REALISATION

Wollert (VIC)

Strathtulloh (VIC)

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.

Located 35km west of the Melbourne CBD in one of Australia’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 2021.

BUSINESS OVERVIEW 2021

Oakland Pocket, Morayfield, QLD

CFMG Capital Completed Projects

RESIDENTIAL LOTS

$24.3m

$19.8m

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 Brisbane’s CBD will be developed to create a boutique residential community. This project will service the significant demand for vacant residential land located within the inner ring suburb of Brisbane. Commenced in 2019 with an expected completion date in 2021.

Just 25km north of the Gold Coast CBD and 40km south of the Brisbane CBD, the site was developed by CFMG and completed in 2020.

CFMG Capital

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179

RESIDENTIAL LOTS

$36.8m

$30.2m

GROSS REALISATION

Park Ridge (QLD)

Logan Reserve (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.

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.

RESIDENTIAL LOTS

$9.7m

$12.2m

GROSS REALISATION

150

RESIDENTIAL LOTS

GROSS REALISATION

Morayfield (QLD)

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.

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 Brisbane’s North. Construction commenced in early 2018 and completed in late 2018.

BUSINESS OVERVIEW 2021

PARK

PLACE

141

RESIDENTIAL LOTS

$29.4m

$57.0m

GROSS REALISATION

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.

246

251

RESIDENTIAL LOTS

$45.6m

$52.2m

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.

CFMG Capital

Real people.

144

221

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

Harries Road 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.

GROSS REALISATION

in 2015.

BUSINESS OVERVIEW 2021

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;

•

Investment returns paid to investors quarterly;

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Debt finance at a conservative loan to independent valuation ratio;

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Tenancy profile must include quality tenants;

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Strong WALE with the term exceeding the minimum investment term prior to any option periods needing to be exercised

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

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Significant capital growth on the asset should ‘value add’ be successful;

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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

CFMG Capital

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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 years’ 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. 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.

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

BUSINESS OVERVIEW 2021

ELIO IACUTONE National Sales & Marketing Manager

NICHOLAS STEADMAN Acquisitions Manager

DUNCAN MACPHERSON Acquisitions & Analysis Manager

Elio oversees the sales and marketing functions across all aspects of CFMG Capital.

Nick is the most recent addition to the CFMG Capital team and brings with him over 18 years’ experience in property development and valuation.

Duncan is our Acquisitions & Analysis Manager at CFMG Capital and has over 6 years’ experience in the property industry.

As our Acquisitions Manager, Nick is responsible for sourcing new land for development across the East Coast of Australia for CFMG Capital.

He’s worked for Villa World, Orchard Property Group and Aspen Group with the last three and half years spent acquiring developments for CFMG Capital.

Elio works closely with the sales team in both the land development and capital raising departments, while leading the marketing team across both digital and offline, as well as brand development. A national and international award winning dynamic marketing professional with significant experience in managing brands, products and places – Elio was the ideal candidate to fill this newly created role, with experience across a range of major organisations in development and asset management such as Aveo Group, Charter Hall, Lend Lease, Stockland and Colonial First State.

With a Bachelor of Business Management majoring in Real Estate & Development and his varied experience in the industry, Nick knows property inside out. He’s recently worked in an acquisitions and development role at Frasers Property in Brisbane and Sydney. Prior to this he has worked in valuation with JLL and Taylor Byrne in Brisbane, Gold Coast and Auckland.

Duncan has worked in Sydney, Brisbane and the Gold Coast and has acquired developments across Queensland, Victoria and New South Wales. His favourite part of the role is seeing parcels of land transform from a block of dirt to a thriving residential community with services, roads, houses and residents.

CFMG Capital

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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 group’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 Australia’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).

BUSINESS OVERVIEW 2021

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

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

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

Printed: September 2021