Queensland property group CFMG Capital has launched a new private debt fund to invest in pooled mortgages across its portfolio of 16 land development projects in southeast Queensland and Victoria.
The CFMG Monthly Income Fund (MIF) will expose investors to competitive returns through loans secured by first mortgages over real property. CFMG Capital has a pipeline of more than 1,700 homesites across 16 Queensland projects and one Victoria.
CFMG Capital operates two core divisions: a residential communities development business with a pipeline of more than 1,700 lots and a funds management business.
The MIF is open to investments from as little as $5,000 and provides the opportunity for investors to get exposure to a diversified portfolio of the Queensland and Victorian land markets without having to buy a property directly.
MIF distributions are paid monthly and will commence at a targeted rate of 8.25% per annum, reviewed monthly.
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CFMG Capital Group General Manager Andrew Thomson said the new fund was driven by customer requests for access to a broader diversified blend of the CFMG Capital project portfolio which was currently in excess of 1,700 allotments across multiple projects.
“MIF will allow investors to diversify their portfolio with exposure to the Queensland and Victorian land markets without going through the time and expense of buying a single property,” he said. “Investors can also be confident their funds are spread across a diverse range of projects and locations.”
“Investors also wanted a more regular income stream so we have established the fund with monthly distributions with a targeted rate of return of 8.25% per annum to be reviewed monthly”
Mr Thomson said the southeast Queensland land market remained buoyant with strong interstate migration and a healthy local economy driving demand.
“We are experiencing high levels of enquiry across all of our active projects with buyers moving quickly to lock in homesites as they come to market,” he said. “Population growth remains strong and supply constraints are persisting. We expect these conditions to continue for at least the rest of 2024 and into next year.”
Mr Thomson said the company had maintained a perfect record for returning 100% of capital invested to investors at the targeted rate.
“We have a strategic pipeline of projects to be delivered over the next few years, and the support of our investors is critical to ensuring we have a diversified mix of funding to support the rollout,” he said.
