Here at CFMG Capital we are committed to retaining our 100% track record for delivering on our targeted returns and the return of 100% of the capital invested with us and think our track record will serve us well as we head into a new phase for the property market.
We have developed a strategic pipeline of projects to be delivered over the next five to seven years, and with the support of our loyal investors have established a diversified mix of investment product.
CFMG Capital now has a pipeline of more than 2,200 allotments diversified across South East Queensland and Melbourne with an on completion value of in excess of $1.1B and remains very optimistic that the residential property market will remain buoyant particularly as demand continues to outstrip supply and a healthy domestic economy driving demand.
During financial year 2024 CFMG Capital successfully returned over $22m in invested capital and returns to 278 investors through the completion of multiple investment opportunities via both the CFMG Land and Opportunity Fund and CFMG First Mortgage and Income Fund.
In addition, CFMG Capital launched a third investment product, the CFMG Monthly Income Fund, which operates as an open-ended pooled credit fund to offer competitive investment returns and benefits including monthly distributions, secured by first registered mortgages and diversification across a series of loans.
The key to CFMG Capital’s 100% success rate has been working to a clearly defined strategy which enables our long term vision to be achieved and in turn for us to continue to deliver value to our investors through disciplined acquisition and a conservative but realistic approach to investment.
CFMG Capital offers three alternatives to investing in property without directly buying housing. These include the CFMG Land and Opportunity Fund, CFMG First Mortgage and Income Fund and new CFMG Monthly Income Fund, which have all seen positive capital inflow with over $73M in new capital invested during financial year 2024.
This positive capital inflow has been seen from investors seeking to earn property-based income without direct property ownership because for some investors direct property investment can be intricate and very involved.
A focus for CFMG Capital during the past twelve months has been on expanding our investment offers with regular income, professional management, diversification and opportunity for growth.
In accordance with our strategic plan CFMG Capital have undertaken the following key activities:
• Completed the acquisition of our new project sites at Bellmere, Logan Reserve, Park Ridge & Rochedale;
• Raised close to $50K in our 6th year supporting the Vinnies CEO Sleepout;
• Provided in excess of $50K in charitable donations and/or sponsorship to local community sporting clubs and groups;
• Contracted the purchase of new project sites at Bellmere, Rochedale and Burpengary to expand our forward project portfolio to over 2200 allotments with a total gross realisation of $1.1B;
• Launched the new CFMG Monthly Income Fund in direct response to investors feedback seeking a regular monthly income stream with a competitive targeted investment return from a trusted manager.
In the following pages of this report, you will find some very useful and general information about our business, an overview of some new products, our projects and some market commentary. In addition, we supply a sneak preview to some of the upcoming opportunities set for FY 24/25.
As always, if you require anything from our team –please do not hesitate to get in touch.
Thank you for your ongoing support and we look forward to continuing to deliver on our commitments to you our loyal investors and to building a long term and repeat investment relationship.
Regards,
Scott Watson Managing Director, CFMG Capital
CFMG Capital Product Overview
CFMG Monthly Income Fund
CFMG Capital launched the new CFMG Monthly Income Fund in April this year. The CFMG Monthly Income Fund is a pooled credit mortgage fund that provides investors with exposure to competitive returns and the Australian property market, through loans secured by first mortgages over real property.
Targeted returns 8.25% p.a (reviewed monthly)
Start investing with $5,000
The benefits of the CFMG Monthly Income Fund include
Distributions paid monthly
12 month term
CFMG First Mortgage and Income Fund
The CFMG First Mortgage and Income Fund product provides our investors with a regular income stream, as the fund distributes returns on a quarterly basis. This fund enables investors to personally select which projects to invest in with a minimum investment amount of $25,000.
Targeted returns 5.95% - 7.85% p.a
Start investing with $25,000
The benefits of the CFMG First Mortgage and Income Fund include
Distributions paid quarterly
6 - 18 month terms
CFMG Land and Opportunity Fund
The CFMG Land and 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.
Interest in the CFMG Land and Opportunity Fund continues to grow with 7 new investment opportunities launched throughout the financial year.
Targeted returns 8.95% - 11.95% p.a
Start investing with $25,000
Key features of the CFMG Land and Opportunity Fund include
Capital + interest paid at end of term
12 - 24 month terms
National Market Update
Over the past year, the Australian residential property market continues maintain strong levels of growth, with property values continuing to rise across the board.
CoreLogic’s most recent ‘Monthly Housing Charts’ for August 2024 (see below chart) show that residential property prices across Australia’s capital cities have risen by 1.8% over the past quarter, while also rising 7.6% over the past 12 months.
Source: Corelogic Monthly Housing Chart
The Australian housing market remains resilient despite low consumer sentiment, economic pressures and high interest rates, with property prices across Australia having risen for the 6th straight quarter.
Lack of supply in the market continues to fuel prices, with strong demand, population growth and a tight rental market resulting in this continued growth.
Over the first five months of 2024, sales volumes were very strong, with national volumes 13.9% higher than the same period last year. CoreLogic estimates there were 40,428 sales in August, taking the national annual count to 513,067. This is 9.3% above sale volumes last year.
Source: Corelogic Monthly Housing Chart
SEQ Market Update
The Southeast Queensland’s land market continues to be resilient despite continued growth in interest rates and inflation. Population growth across the state has been a large factor in this growth with the population increasing by over 140,000 these past 12 months alone.
The market continues to gather pace with the market on track to achieve its highest number of sales since the September quarter of 2021.
East Queensland Residential Land Sales - Quarterly
Source: Oliver Hume
Land prices across the South East Queensland property market continue to grow along with Sales Volumes, with median gross land prices up to $350,000. The market’s diversity of stock and relative affordability to other capital cities are key components driving this continued growth.
South East Queensland Median Gross Land Price
$370,000
$350,000
$330,000
$310,000
$290,000
$270,000
$250,000
Source: Oliver Hume
Moving forward, the outlook for the South East Queensland residential land market will be driven by a few key factors. These factors include the future direction of interest rates and inflation, along with Australia’s growing housing supply issues.
Despite more homes being listed for sale and rising prices making property less affordable, the Brisbane property market continued to steam ahead.
South
Brisbane has officially outstripped Melbourne for property values, with new data showing the city is now the third most expensive capital for median dwelling values after Sydney and Canberra.
A new report from CoreLogic showed Queensland’s capital managed to surpass Melbourne’s median value by about $7000 late last year, making it the first time Brisbane has outshone its larger southern sister since July 2009.
A slowdown in construction has hampered the supply of new housing, concentrating demand on existing properties – demand for new residential developments expecting to grow further as demand continues to outstrip supply.
Queensland recorded a population growth rate of 2.6% in the 12 months to 30 June 2023, above the national average (2.4%) and third highest among all states and territories – behind Western Australia’s 3.1% increase and Victoria’s 2.7% increase over the same period, according to the latest ABS data.
What sets Queensland apart from the rest, though, is that while the volume of net overseas migration dominates figures (as it does elsewhere in other states) Queensland’s volume of net interstate migration is significantly higher and made the largest contribution to population growth in Queensland in the 12 months to June 2023.
Melbourne Market Update
Melbourne’s property market has also begun to see signs of recovery over the past few months, with prices increasing by 2.3% over the past quarter. Much like other states across Australia this increase in property prices is largely driven by increased migration and a lack of housing supply.
Population continues to be one of the key driver’s of Victorias property growth, with the population increasing by over 190,000 people across the past 12 months.
Source: Oliver Hume
Acquisitions Strategy
The key focus for CFMG Capital is to acquire strategic residential development sites that meet a strict investment criteria and enable CFMG Capital to offer attractive residential investment opportunities to our current and future client base.
In order to achieve this, a steady flow of new acquisitions is required, with the primary challenge being to ensure they meet the clearly defined investment criteria underpinning the CFMG Capital development business. This criteria is defined generally below:
• Proximity to a major capital city;
• Population growth and demographics of the locality;
• Proximity to existing and proposed competing land estates (particularly master planned estates);
• Proximity to key planned infrastructure projects;
• Employment opportunities within the locality; and
• Lifestyle choices including schools, family security, transportation and recreation;
In the assessment of potential projects CFMG Capital targets short, medium and long-term opportunities with the view to fill the groups development pipeline from both ends.
Recently here at CFMG Capital we have been focusing our efforts towards targeting opportunities located within the South East Queensland market. Particular attention has been given to areas located within the Moreton Bay and Logan growth corridors, while also continuing to focus on sites adjacent to, or in the immediate vicinity of existing CFMG Capital projects.
By purchasing adjacent to, or in the immediate vicinity of existing projects, CFMG Capital are able to expand existing projects taking advantage of existing marketing, development and sales momentum, or in some cases replace completed projects to meet the demands of various sales networks.
Whilst it is important for CFMG Capital to acquire short and medium-term projects, that can be released into the market over the next couple of years, it is also critical for CFMG Capital to look further into the future and acquire sites on longer-term agreements. This is key for CFMG Capital to future proof the group’s stock supply.
These long-term acquisitions also provide CFMG Capital the opportunity to build future value across these projects by obtaining Development Approvals and/or rezoning, while also allowing CFMG Capital to benefit off the continued growth in residential land values.
During the past twelve months CFMG Capital have managed to acquire short, medium and long-term development sites, over 5 separate transactions totalling over 800 residential lots. A snapshot of the Group’s existing development pipeline is shown as follows:
CFMG Capital Project Pipeline
Elevate, Ormeau Hills QLD
101 lots Launched: 2019
Millwood Rise, Nambour QLD
63 lots Launched: 2021
Farriers Creek, Burpengary QLD
132 lots Launched: Early 2022
Sovereign Estates, Rochedale QLD
10 lots Launched: 2022
Arbourwood, Morayfield QLD
240 lots Launched: Mid 2023
Mallee Grove, Jimboomba QLD
36 lots Launched: Mid 2023
Riverleigh, Logan Reserve QLD
143 lots Launched: Mid 2023
Birchwood, Park Ridge QLD
249 lots Launch: Late 2024
Mayfair Lane, Rochedale QLD
17 lots Launch: Early 2025
Logan Reserve QLD
30 lots Launch: Mid 2025
Rochedale QLD
30 lots Launch: Mid 2025
Ambury, Bellmere QLD
1300 lots Launch: 2026
Pimpama QLD
300 lots Launch: 2026
Sunbury VIC
150 lots Launch: 2027
CFMG Residential Communities Update
At CFMG Residential Communities we seek not only to make the dream of home ownership affordable, we also care about making real neighbourhoods and real communities. We have a proud history of creating successful communities across Australia with over 5,000 people choosing to call a CFMG Residential Community home.
Creating real neighbourhoods
Riverleigh, Logan Reserve
Riverleigh in Logan Reserve offers a peaceful riverside lifestyle with easy connections to everything our residents need. Set alongside beautiful parkland with views to the Logan River, the location of this community is perfect for a growing family.
A variety of shops, schools and transport options are on your doorstep in the surrounding Logan Reserve community. Riverleigh will be home to 109 residential homesites, all just a short stroll to natural parkland within the community and beyond.
Key Features of
• Parkland within the Riverleigh Community
• A variety of employment hubs nearby
• Views and access to the Logan River
• Close to childcare, primary and secondary schools
• Close to Logan Hospital
• Easy access to the Mount Lindesay Hwy
• A range of shops, cafes and restaurants in Park Ridge
• Transport links to Brisbane and the Gold Coast
Riverleigh
Choose. Build. Live
Sunday Living Homes had an exciting 2024 financial year with the expansion of the Sunday Living Homes offering into the North Brisbane region. Home and land bundles were launched in Caboolture, Burpengary and Morayfield with a high level of interest from purchasers.
New Sunday Living Homes floorplan designs were also launched throughout the year. These new designs were produced following valuable customer feedback about current needs and wants in housing design. More living space, updated colours schemes and new inclusions were some of the updates made to the Sunday Living Homes designs.
Meet Teina – Sunday Living Homes Sales Consultant
Teina joined the Sunday Living Homes team this year and is dedicated to helping homeowners and investors secure home and land packages across our residential communities in South East Queensland and Victoria. He finds great satisfaction in connecting with people and making their home and investment aspirations a reality.
With a strong background in carpentry, including both hands-on experience and formal qualifications, Teina transitioned into sales consulting in 2020.
When he’s not working, he enjoys spending time with his family and pursuing his passions for hunting, fishing, camping, and anything with horsepower.
CFMG Capital Philanthropy
CFMG Capital prides itself on making a contribution to the local community and 2024 has continued this mission with new charities to support.
OzHarvest Volunteering Day
The CFMG Capital team participated in a day of volunteering at OzHarvest on Friday 10th May 2024. The team spent the afternoon preparing and packing meals to help feed people in need.
OzHarvest has become a leading food rescue organisation on a mission to ‘Nourish our Country’ by stopping good food from going to waste. With five million Australians experiencing food insecurity each year, OzHarvest food rescue operations, food app and food relief services provide fresh and nutritious food to over 1500 charities across the country feeding people from vulnerable backgrounds.
Vinnies CEO Sleepout - 2024
On the 20th of June 2024 our Managing Director, Scott Watson, took part in the Vinnie CEO Sleepout to raise vital funds to support the many Australians who are experiencing homelessness and people at risk of homelessness. Close to $50,000 was raised to support the charity.
CFMG Capital has also sponsored and supported a range of local groups, businesses and charities throughout the year. To find out more visit www.cfmgcapital.com.au/philanthropy to find out more.
CFMG Capital by the numbers 2024
100% of capital invested has been returned to our loyal investors
4
investment opportunities completed across the Monthly Income Fund, First Mortgage and Income Fund and the Land and Opportunity Fund
323
residential lots sold, totalling a gross realisation of over $117M
$73M in new capital invested during last financial year
$22M of invested capital was returned to investors
9 new staff members welcomed to the CFMG Capital team
$50,000 donated to charities, local sporting clubs and groups
5 new development sites acquired in Logan Reserve, Burpengary, Park Ridge, Rochedale and Bellmere
