Category: In the Media

WEALTH & SOCIETY
The PRI is the world’s leading advocate for responsible investment. Joining its global network formalises Zagga’s commitment to embedding Environment, Social, and Governance (ESG) considerations across investment and operational decision-making and practices.

Nikki Kemp, Singapore-based Independent Chair of Zagga’s ESG Committee, Director of Singapore Green Finance Centre and former World Economic Forum Executive, said this was an important milestone signalling Zagga’s determination to integrate ESG at every level.

STOCKHEAD & THE AUSTRALIAN
When share prices climb faster than profits, dividend yields naturally shrink. So while stocks look elevated, those once-reliable cheques don’t carry the weight they used to.

For income-hungry investors, the hunt is on for something steadier.

One corner of the market that’s quietly moving into the spotlight is private credit – and in particular, real estate-backed private credit.

GREEN STREET NEWS
The project, in one of Sydney’s most affluent suburbs, has attracted interest
from wealthy buyers, with its three-bedroom penthouse selling for $20m last
year. Luxury development like La Strada has proven viable for many developers as
well as private financiers like Zagga. Their higher price points make them more
profitable than other apartment buildings amid elevated construction costs.

STOCKHEAD & THE AUSTRALIAN
The term ‘commercial’ has been synonymous with property for decades. It conjures images of office towers, industrial blocks, and retail precincts. However, in the context of commercial real estate debt (CRED) – part of the broader real estate private credit market – commercial doesn’t describe the building, but rather, the underlying loan transaction. It’s about lending to a commercial borrower, typically a developer, and assessing the quality of the sponsor, the project, risk exposure, and execution. Tom Cranfield, Executive Director of Risk & Execution at Zagga, explains why this distinction matters for investors.

STOCKHEAD & THE AUSTRALIAN
SMSFs are turning to private credit, says Zagga, which is focused on showing “commercial” lending is less about skyscrapers and more about strong sponsors, steady margins and projects that actually stack up.

SMSF ADVISER
Tax has historically been levied on realised gains – profits made, not valuations. Division 296 breaks that tradition, creating a scenario where investors may owe tax on unrealised gains – values that could just as easily reverse.

This adds complexity for investors: it’s no longer just about selecting asset classes, but about structuring portfolios to manage tax exposure.

STOCKHEAD & THE AUSTRALIAN
While the benefits of CRE debt are increasingly recognised, one fundamental question persists: how should investors access real estate private credit – directly or via a fund?

Both routes can be rewarding. What also needs to be considered is manager selection and doing your research to understand the structure, liquidity terms, and underlying credit processes. Now is the time to be diversified and defensive; in today’s uncertain investment environment, Australian real estate private credit is being duly recognised as an asset class of choice.

STOCKHEAD & THE AUSTRALIAN
As the dust settles on a turbulent financial year, and Division 296 looms large on the super tax horizon, Aussie investors are waking up to a sober truth: you don’t have to shoot the lights out to build a smart portfolio. Sometimes it’s about holding the torch steady.

The focus has now shifted from big swings for capital growth to something a little more… sensible. Income, consistency, capital preservation.

And that’s why private credit, a once-niche corner of the market, is starting to get more airtime.

NIKKEI ASIA
Investors hunting for some safe haven income are turning to Australia’s growing real estate sector, boosting companies that help them direct their money into loans to property developers.

The country’s robust but predominantly inwardly focused economy, contained inflation and growing population make it a safe and stable investment destination with lower levels of volatility, according to Zagga, a player in the country’s private real estate credit market.