Ormeau project for CFMG

BRISBANE-BASED CFMG Capital is seeking $3 million from investors to fund a 100lot residential development at Ormeau.

The company announced the purchase of a 5.7ha parcel at Ormeau in June after paying $7.6 million for the land. It is offering investors a 12% fixed return if they invest for a minium of two years in the CFMG Land & Opportunity Fund.

The fund is an unlisted managed investment scheme that invests in the development of residential land subdivisions. CFMG says the fund currently holds investments in seven projects with a gross sales value of $200 million.

The Ormeau project is approved for 96 lots, however CFMG plans to apply to the council to increase the number to 100.

CFMG Capital general manager Andrew Thomson said investors would benefit from a land market set to strengthen during the next two years.

He said managed investment schemes like the CFMG fund were a sensible alternative for investors looking for property exposure, but not the risks associated by directly buying a heavily leveraged single property.

“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’s site at Ormeau Hills is 25km north of the Gold Coast CBD and 40km south of the Brisbane CBD.

It is also close to the Ormeau Town Centre which features a Woolworths, IGA, service centre, health care and a range of specialty stores.

Stage one subdivision works on the project, to be called Elevate, are planned for October.