We are pleased to announce that our inaugural unitised private debt fund, the Zagga CRED Fund (ZCF), has now been officially registered as a Foreign Investment Trust with the Financial Services Agency (FSA) of Japan. This significant milestone allows the Fund to be more widely accessible to a growing cohort of Japanese investors seeking exposure to Australian real estate private credit for its income-generating, diversification, and defensive characteristics.
The Zagga CRED Fund is now available for investment by wealth advisors in Japan, catering to the increasing demand among investors for alternatives that provide stable returns and serve as a hedge against market volatility. This expansion underscores Zagga’s commitment to offering its innovative investment solutions to a broader audience.
Since its launch, the Zagga CRED Fund has outperformed its target net return of OCR + 4% p.a. for wholesale investors with a minimum investment of $50,000.
The Fund strategically invests in a meticulously curated portfolio of credit-vetted, mortgage-secured loans within the commercial real estate sector, offering a compelling alternative for advisors who are seeking to increase their clients’ allocation to private debt for stable income and risk-adjusted returns amid an inflationary, and increasingly volatile, market environment.
Alan Greenstein, CEO of Zagga, commented on the expansion:
“Registering the Zagga CRED Fund as a Foreign Investment Trust with Japan’s FSA is a logical extension of our desire to attract investors from outside Australia, and particularly from southeast Asia . This move complements our Singapore sub-Fund and extends our direct investment offering to a wider Japanese investor-base looking to access the same defensive and income-generating potential that has resonated so well with our Australian investors.”
In Australia, the Zagga CRED Fund continues to gain traction and is currently available on major platforms including Netwealth, Praemium, HUB24, and most recently, BT Panorama. This availability highlights the growing appeal of this fast-growing asset class and provides accessibility to a broad range of investors seeking CREDible alternatives to traditional investments.
Zagga has seen impressive growth since its inception, with total originations to end August 2024 close to $2 billion, while maintaining an average investor return of over 8% per annum since the firm’s inception in 2016. For Q1 FY25, Zagga has experienced its highest-to-date funding inflows, as well as record originations, with a pipeline of $400M+.
With funds-focused investment channels in Australia, Singapore and now Japan to complement its well-established direct investment channels in those markets, Zagga continues to position itself as a leader in the private commercial real estate debt sector.
The Zagga CRED Fund
Zagga is an ASIC-regulated, Australian boutique investment manager and non-bank lender incorporated in 2016. The high-calibre team has over 200 years’ combined experience in credit, property and investment management.
Their objective is to generate stable, fixed income style, investment returns through funding high-quality, mortgage secured loan transactions focussing primarily on the Commercial Real Estate Debt sector on the Eastern Seaboard of Australia.
The Group has experienced significant growth since originating its first loan in mid-2017. To date, they have returned 100% of all investor capital.
Their base of investors includes high net worth individuals, family offices and institutional funders, from Japan, Singapore, China, Mauritius, Switzerland, USA, South Africa and Australia.
