David French | 16/11/2012 9:37:16 AM

This article was originally published as 'The Grand' in http://www.themorningbulletin.com.au/ on 16 June 2012.

Regular readers of this column will note that I rarely try and push my own barrow. I enjoy writing, and there always seems to be a wide range of topics interesting to readers.

This week however, I want to write about Central Queensland’s only diversified investment fund – the Capricorn Diversified Investment Fund (CDIF). CDIF was put together following a lot of hard work by me and others at Capricorn Investment Partners Limited. The fund has made about 6 investments to date, with some earning more than 20 per cent. Overall the fund has outperformed the ASX by about 13 per cent, and that has enabled directors to declare the first distribution – about 4 per cent annualised tax free. The distribution is expected to increase as additional investments are made, and in particular, on completion of the fund’s biggest investment - the Grand Hotel redevelopment.

Passers-by will notice that the Grand Hotel and the house next to it has been demolished, with only Legacy house still standing. The combined land parcel comprises more than 1,700 square metres of prime commercial land, snugly situated between City Centre Plaza, The Edge and the new Empire apartment hotel (to be started in January).

CDIF now has all drawings for the new Grand essentially complete and with council approval almost finalised, actual building work is expected within a few weeks. Already there has been interest from large corporates regarding leasing space, and with a large number of car parks it is likely to be a popular building.

Building CDIF took about 3 years, slowed down by the GFC, and all manner of regulatory hurdles. Then there were the floods and later the normal hiccups you face in getting a good quality parcel of land together. Clearly CDIF is not something cooked up over a few beers (although I’m the first to admit that many great ideas have been spilt on a bar-room floor!) – It’s fully regulated by ASIC, and that means it’s independently audited and has independent people overseeing compliance.

Many people in our region lament that the Government is not doing anything, and that nothing is happening. What CDIF, and in particular the redevelopment of The Grand shows is that, it is possible to undertake quality projects in Central Queensland and for locals to participate in them. Why not get involved? Pick up a Product Disclosure Statement and see what it is about.

The Investment Collective (AFSL 471728) is a non-aligned financial planning and investment firm specialising in providing tailored financial and investment advice for individuals and small business. Capricorn Investment Partners Limited's services include financial planning, share trading, portfolio management, insurance broking and self managed super fund administration. Additional information on services provided by The Investment Collective Limited can be found by following this link. Readers are reminded that this document has been prepared for general information purposes only, and any advice contained herein has been prepared without taking into account your financial objectives, situation or needs. Readers are advised to see their financial advisor prior to acting on any general advice.

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