CFMG Capital Business Overview 2019

Business Overview 2019

CFMG Capital create value for investors through active and passive property investment in the residential, retail and commercial markets.

The core focus for 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 real estate sector indicators across the nation point to a pick up in activity, spurred by a shortage of land supply it is anticipated that strong medium to long term earnings can be achieved through real estate backed investments.

Having been in operation since 2008, CFMG Capital have in excess of 1,000 loyal investors who have invested a little over $100m in CFMG Capital investment opportunities.

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CFMG Capital operates two core businesses:

Residential Communities We bring residential communities to life.

The goal is to deliver aspirational addresses to emerging communities across Australia. Our ability to operate with agility, focus and quality delivers a clear competitive advantage to our investors.

Real Estate Investment Trusts (REITs) High quality real estate backed income stream investment opportunities including direct property, financial assets and opportunity funds.

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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)

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Fixed Investment terms

Minimum investment of just

$25,000 Â

Residential Communities CFMG Capital delivers 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;

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

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

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CFMG Capital Projects

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

Project Overview

(Part II)

186

RESIDENTIAL LOTS CURRENT COMPLETED

CREEKS EDGE

$37.2m GROSS REALISATION

OAKLAND POCKET LOMANDRA PARK SOLANDER MIDDLETON PARK MIDDLETON PARK II HARRIES ROAD

BRISBANE GOLD COAST

CUNNINGHAM RISE

ELEVATE THE BROOK

SYDNEY

DAMARA DAMARA PARK

MELBOURNE

WOLLERT THE MILLSTONE BROOKHAVEN/ALTITUDE EVERGREEN

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Logan Reserve (QLD) This 10.35 hectare site will be developed by CFMG Capital to create a further 186 residential allotments in continuation of the existing operating residential land development known as Middleton Park.

Located just 30 minutes from the Brisbane CBD and less than an hour from Gold Coast beaches, expected completion is in 2022.

100

86

RESIDENTIAL LOTS

RESIDENTIAL LOTS

$24.3m

$38.7m

GROSS REALISATION

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 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.

BRISBANE CBD

7

Epping Road, Wollert

80

85

RESIDENTIAL LOTS

RESIDENTIAL LOTS

$27.6m

$12.2m GROSS REALISATION

GROSS REALISATION

Wollert (VIC)

Morayfield (QLD)

It is anticipated that the project site will be developed as an 85 lot residential development together with associated retail and commercial uses. Located only 25km from the Melbourne CBD, this site will be developed among an abundance of already established lifestyle amenities, health and education facilities, outdoor living, and public transport and major road networks.

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.

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1.2

6

8

X 9

5 ROAD

8 3

1.2 8

EPPING

7

LANDOVER ROA

D

56

WL-06

4

7 FUTURE CON

11

1.1

2 NECTOR STR

EET

2 Proposed southern road connection.

33.

1.2 1.2

Proposed eastern road connection to integrate with proposed estate.

Waterway & Drainage reserve centrally located with Creek Corridor.

44.

Stormwater treatment asset, consolidated to deliver quality outcomes.

22.

Future 25m wide Connector Road, with intersection at Epping Road.

55.

Employment Site, adjoining Epping Rd. interface.

66.

Local Park, activated by future layout.

0 Urban Development | Infrastructure

8 / 270 Ferntree Gully Road, Notting Hill, Victoria, 3168 Tel: 61 3 9501 2800 | Web: taylorsds.com.au

8

86

4.9

18

Design Notes; 1.1 1.1

N

12.5

25

37.5

Scale 1:1250 @ A3

metres

p:\20000-24999\21408\acad\urban design\concept plans\cad\mp06\21408_mp06.dwg | DR

Job No.

21408 | MP 06 | DR Date.

16/11/18 Ckd. By. RAB AGT

LEGEND

7 7.

Master plan layout for adjoining site.

8 8.

Layout facilitates independent access across entire site.

9 9.

Removal of PSP nominated tree within waterway

10.

10

Future Road to interface with local Park.

11.

11

Existing driveway access into Superlot

Site boundary

SOURCE DATA

¡ See MP for details

Shared Path

405 Epping Road Wollert, 3750

WHITTLESEA COUNCIL

DESIGN RESPONSE

PARK

71

PLACE

141

RESIDENTIAL LOTS

RESIDENTIAL LOTS

$29.4m

$57.0m

Edmondson Park (NSW)

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

GROSS REALISATION

PARK PLACE

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179

RESIDENTIAL LOTS

RESIDENTIAL LOTS

$36.8m

$9.7m

GROSS REALISATION

GROSS REALISATION

Park Ridge (QLD)

Morayfield (QLD)

This 11.4 hectare site is ideally located just 30 minutes from the Brisbane CBD and will be developed by CFMG Capital into 179 residential allotments.

Oakland Pocket is a single stage development to be undertaken by CFMG Capital to create 57 residential allotments. With an existing DA in place, project completion is expected in 2019. Located in the heart of Morayfield and surrounded by schools, shops and major transport infrastructure, this project ticks all the boxes of the CFMG Capital investment criteria.

Situated in a key urban growth corridor, project completion is expected in 2019.

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57

150

303

RESIDENTIAL LOTS

RESIDENTIAL LOTS

$30.2m

$58.6m

GROSS REALISATION

GROSS REALISATION

Logan Reserve (QLD)

Strathtulloh (VIC)

This 8.47 hectare site will be developed by CFMG Capital to create 150 residential allotments 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, expected completion is in 2020.

Located 35km west of the Melbourne CBD in one of Australia’s fastest growing corridors, this 17.3 hectare site is being developed by CFMG Capital with expected completion in 2019.

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246

RESIDENTIAL LOTS

RESIDENTIAL LOTS

$45.6m

$52.2m

GROSS REALISATION

12

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

RESIDENTIAL LOTS

$38.6m

$27.5m

GROSS REALISATION

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.

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CFMG Capital REIT Projects Equity, Income & Opportunity funds.

275

RESIDENTIAL UNITS

Coorparoo Residential Opportunity Fund (QLD) The Coorparoo Residential Opportunity Fund was a registered managed investment scheme which purchased an existing underutilised tenanted asset identified as having potential for capital growth through residential redevelopment opportunities.

The Property had the benefits of an existing rental income with the potential for capital growth.

Being located in a high density residential zone, the potential was identified to re-develop the site as a medium rise residential complex comprising 275 units over 12 storeys.

After CFMG Capital improved leasing outcomes to improve the holding income and began to progress plans for a residential development, the trust asset was sold in June 2015 generating a strong return on equity investment with the opportunity seized for a fast transaction which provided financial uplift for the group.

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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

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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

LISA HOSEGOOD Financial Controller

With 15+ 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.

Lisa is a highly experienced financial and management accountant responsible for the financial modelling, management and administration of CFMG Capital projects and has a thorough knowledge of all aspects of property development, property finance, infrastructure and planning.

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.

With 4 years working specifically on large scale property finance deals, as well as 8 years as a development management accountant in the land use planning and property development industry – Lisa is uniquely qualified to provide expert financial management to the CFMG Capital Group.

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.

Lisa is a fully qualified CPA, registered JP and has additional experience in urban and industrial development throughout Queensland.

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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.

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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).

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.

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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