The Zagga CRED Fund

Another CREDible alternative for advisors

The Zagga CRED Fund is our flagship unitised fund that aims to deliver investors with risk-adjusted returns and regular defensive interest income through investment exposure to a diversified portfolio of creditworthy commercial loan transactions secured by quality Australian real estate.

Fund Overview

For investors looking for an alternative to shares and traditional fixed income and property investments, the Zagga CRED Fund (ZCF) provides a CREDible avenue for portfolio diversification and regular, risk-adjusted income by investing in a specifically curated portfolio of credit-vetted, mortgage-secured loans.

The Fund invests predominantly in senior debt, diversified across a mix of geographic locations, sectors, and borrower profiles. By investing in the Fund, investors can access opportunities not readily available to private investors on a direct basis, while accessing the specialist knowledge and skills of the Investment Manager.

Fund Facts

Minimum investment1

$50,000 for the initial investment
Multiples of $10,000 for any additional investments

Investing

Units will be issued on a monthly basis
(unless the Trustee decides to value the Fund more frequently)

Target return

RBA Official Cash Rate + 4% p.a.​

Issue price

$1.00
(for the first investment)

Income distribution​

Monthly

Access to funds

Subject to the minimum lock-up period and maintaining a minimum remaining balance of $50,000, an investor may redeem part or all of their units only with the consent of the Trustee

Redemption price

Redemption Requests accepted by the Trustee will receive the Redemption Price calculated on the most recent Valuation Date occurring prior to the redemption of units​

Valuation

The Fund will be valued on the last business day of each month
(or more frequently as the Trustee determines)

Management fee2

0.50% p.a. of the Gross Asset Value
(calculated and accrued monthly on the last business day of the month and paid to the Trustee monthly in arrears)

Suggested minimum investment time frame

Minimum lock-up period of 12 months from the date of investment
(which may be waived at the discretion of the Trustee​)

Research rating

Four-star, SUPERIOR investment grade rating by SQM Research for the underlying Lending Trust​

1. The Trustee may alter the minimum amounts specified at any time without prior notice to unitholders.
2. All numbers exclude GST unless otherwise noted and all dollar amounts are in AUD.

Access the key Zagga CRED Fund documents

Research Rating and Report

Zagga, a fully licensed boutique, non-bank lender and investment manager, has confirmed that independent research house, SQM Research (SQM) has awarded a 4-star ‘Superior’ (Investment Grade) rating for the Zagga Investments Lending Trust (ZILT), for the fourth year running.

The rating contained in this document is issued by SQM Research Pty Ltd ABN 93 122 592 036 AFSL 421913. SQM Research is an investment research firm that undertakes research on investment products exclusively for its wholesale clients, utilising a proprietary review and star rating system. The SQM Research star rating system is of a general nature and does not take into account the particular circumstances or needs of any specific person. The rating may be subject to change at any time. Only licensed financial advisers may use the SQM Research star rating system in determining whether an investment is appropriate to a person’s particular circumstances or needs. You should read the product disclosure statement and consult a licensed financial adviser before making an investment decision in relation to this investment product. SQM Research receives a fee from the Fund Manager for the research and rating of the managed investment scheme.

How to invest?

For advisers

• BT Panorama | • HUB24 | • Netwealth | • Praemium

For investors

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ZCF will invest in property assets across residential, commercial and industrial sectors

Below is a high-level summary of the type of loan transactions in which ZCF may invest.

Bondi Beach, NSW

Real Estate Sector

Land Banking

Loan Purpose

Acquisition of an existing mixed-use site overlooking Bondi Beach (retail and residential) for highly-experienced counterparties as they run DA approval process for an improved mixed-use site

Facility Size

$11,200,000

LVR

70%

Term

6 to 12 months

Bowral, NSW

Real Estate Sector

Residential Development

Loan Purpose

Construction of seven over-60’s luxury standalone dwellings each consisting of three-bedrooms + study, 2.5 bathrooms and double garage


Facility Size

$9,800,000

LVR

59.92%

Term

13 months

Castle Hill, NSW

Real Estate Sector

Residential Development

Loan Purpose

Construction of 14 residential townhouses comprising of 2 and 3-bedrooms. Facility commenced with 6 sales representing 52% of net presale cover


Facility Size

$16,860,000

LVR

66.32%

Term

12 to 18 months

Collingwood, VIC

Real Estate Sector

Residual Stock – Commerical

Loan Purpose

To provide time for Borrower to finalise remaining lease agreements on favourable terms to facilitate a refinance to a long-term investment facility with their existing major Bank lender


Facility Size

$14,200,000

LVR

57.20%

Term

12 months

Little Bay, NSW

Real Estate Sector

Land Banking

Loan Purpose

Land acquisition while the Sponsors run DA process for development of site into 16 dwellings (8 detached villas and 8 duplexes). The site has direct frontage to the first hole of St Michael’s golf course and sweeping views of the Pacific Ocean

Facility Size

$11,050,000

LVR

65%

Term

12 months

Silverdale, NSW

Real Estate Sector

Commercial Development

Loan Purpose

Provision of funds for redevelopment of Silverdale shopping centre which contains Woolworths as an anchor tenant on a 10-year head lease with five x 8-year options. There are also a number of leases and Heads of Agreements (HOA) in place

Facility Size

$36,245,037

LVR

52.65%

Term

10 to 12 months

Note: These current loan transactions meet the Investment Criteria for ZCF, as detailed in the Information Memorandum. They may not represent the actual Underlying Loans.

With investors facing a storm of volatile pricing, and residential property yields compressed by high purchase prices, what alternatives are there?

Our newest white paper delves into the dynamics of the fast-growing private lending market, and what’s driving it.

Why Zagga?

We are an established Australian boutique CRED specialist and investment manager.

We have a proven track record and maintained strong momentum
and above-system growth since inception in 2017.

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successful exits

AFSL
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SUPERIOR

Investment rating

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Our Experience.

Your Investment.

Meet your Zagga representatives.

Matthew Harper
Senior Executive, Investment & Funding
matt@zagga.com.au

Erica Geddes
Senior Executive, Investments & Funding
egeddes@zagga.com.au

Incorporated in 2016, the Zagga team, consisting of close to 20 people, has over 200 years’ combined experience covering the areas of:

  • Treasury and Finance Distribution
  • Marketing and Business Development
  • Credit and Operations

Our Management and Board comprises highly experienced individuals with extensive expertise across CRED.

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