Source: Investor Daily
Author: Rhea Nath
Date: 06 September 2024
The Zagga CRED Fund is now accessible to Japanese investors seeking exposure to Australian real estate private credit.
The Zagga Commercial Real Estate Debt (CRED) Fund has been officially registered as a foreign investment trust with the Financial Services Agency (FSA) of Japan in response to increasing appetite for alternatives as a hedge against market volatility.
According to the non-bank lender, this “significant milestone” will assist a growing cohort of Japanese investors seeking exposure to Australian real estate private credit for its income-generating, diversification, and defensive characteristics.
It will also complement the firm’s current investment channels in Australia and Singapore.
“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,” said Alan Greenstein, CEO of the boutique investment manager and non-bank lender.
“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.”
The Zagga CRED Fund strategically invests in a curated portfolio of credit-vetted, mortgage secured loans within the commercial real estate sector.
Since its launch in August 2023, it has outperformed its target net return of official cash rate plus 4 per cent per annum for wholesale investors with a minimum investment of $50,000.
It is currently available on major platforms including Netwealth, Praemium, HUB24 and BT Panorama in Australia.
It has witnessed its highest-to-date funding inflows for the first quarter of financial year 2024–25, as well as record originations, with a pipeline of some $400 million.
Zagga’s director of investment and risk, Tom Cranfield, recently joined an InvestorDaily webcast about navigating the rise of Australian CRED. To find out more, click here.