How we invest

Investment philosophy

We provide short-and medium-term (up to 24 months) loan funding to creditworthy businesses and individuals. The underlying assets are first-mortgage secured, senior loans These loans are originated, funded and managed via the Zagga platform which allows investors’ funds to be deployed into specific loans (each with their own specific risk, rate of return and term), giving the investor a fractional participation in each loan.

Zagga uses its propriety platform to manage its investors and loans. Investors can invest in one loan, or a portfolio of loans which provides them with the ability to diversify their risk across the portfolio. Fractional beneficial interest in the loan and diversification across different loans operates to limit the risk to the investor of non-performance or loss in a specific loan.

Covid, crisis and catalysts - rise and rise of alternative lending
The creation of an alternative asset class

Explore the investment trends among Australian investors, and understand why a new approach is needed.

Lending philosophy

Zagga’s success to date is based on the competence of its team, the efficiency of its bespoke platform, and the extensive experience of its executives and contracted advisors. Zagga’s expertise covers the full process from deal origination to asset recovery.

Each loan arranged by Zagga is secured by a first ranking real property mortgage against one or more quality property assets with a recent valuation. These loans are further supported by:

Property 2

Quality property assets

Each loan arranged by Zagga is secured by a first ranking real property mortgage against one or more quality property assets with a recent valuation. These loans are further supported by:

  1. detailed due diligence in relation to the experience, financial position and reputation of the borrower and sponsor/guarantors;
  2. a clear and achievable ‘exit strategy’, typically including at least two or three alternative exits;
  3. experienced third-party legal firms engaged to document all loans to ensure each loan is correctly secured; and
  4. active management of all loans by the Zagga team throughout the term, including asset recovery if required.
Signage

Property asset types

Zagga arranges loans secured against the following real property asset types:

  1. Australian capital cities, with a focus on metropolitan Sydney and Melbourne but with some exposure in Adelaide, Brisbane and Hobart, as well as in regional areas within 100 kilometres of capital cities, mostly across New South Wales, Victoria and Queensland. No exposure in Northern Territory or Western Australia;
  2. secured property values generally in the A$2 million to A$30 million range, where buyer and refinance liquidity is relatively deep; and
  3. non-specialised property assets including land with residential use, completed apartments, generic commercial property and construction loans.
Direct or fund

Critical underwriting factors

More specifically, and as part of the credit assessment process, Zagga considers critical underwriting factors on a deal-by-deal basis, including:

  1. location and site amenity;
  2. land acquisition value and terms, relative to an independent professional valuation;
  3. conditions precedent and ongoing covenants and conditions subsequent;
  4. the security structure;
  5. the loan-to-value ratio or the loan-to-cost ratio; and
  6. borrower income, other net assets and repayment history.
construction

Lending philosophy (development sites)

In the case of a loan secured by a development site, including a construction loan, Zagga will also look at addition criteria including additional funding sources, sponsor track record, the contingency allowance and presales, among other factors.

Start the Zagga experience

Click the Join button below to access Zagga’s marketplace platform and open the door to a new class of investment possibilities.

Have a question?

Our team are happy to assist 9 am to 5 pm Monday to Friday. If you prefer, you can send us an email.

1300 1 ZAGGA (1300 192 442)  |  Or +61 2 9290 8543  |  info@zagga.com.au

Interested in learning more about Zagga? Join our mailing list