Zagga sees investment channel expand to Japan

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.

As of end August 2024, Zagga’s total originations stand at close to $2 billion while maintaining an average investor return of more than 8 per cent per annum since inception in 2016.

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.

This article is for information purposes only. It does not take into account your objectives, financial situation or needs. Any opinion expressed in this article are of the author and is subject to change without notice. Readers are reminded to exercise caution and use their own judgment when interpreting and applying the information contained in this article.

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We would like to acknowledge the Traditional Custodians of the lands, seas, and communities in which we provide our services. We would also like to pay our respects to the Elders past, present and emerging, and the continuing cultural influence they have on Australia.

Zagga Market Pty Limited (Australian Credit Licence 490904) ACN 611 662 401 acts as the Servicer of loans acting on behalf of the credit provider, Zagga Investments Pty Limited (AFSL 492354) ACN 615 154 786, trustee of the Zagga Investments Lending Trust

Additional Disclaimer

All portfolio numbers quoted correct as at 30 October 2024.

*Average investor return across the active portfolio as at 30 October 2024.

**Target return is after expenses and any applicable management fees for the year ending 30 June 2024. OCR = Australian Reserve Bank Official Cash Rate.

Past performance is not a reliable indicator of future performance and investments are subject to investment risk, fees and costs. Returns are not guaranteed.

Prospective investors wishing to invest in a Zagga direct investment or a Zagga Fund should fully consider the Information Memorandum, ZFF Fact Sheet and/or ZWF Brochure, available from Zagga, before applying to invest. Investments are subject to risks.

Articles on this website have been prepared by Zagga Investments Pty Limited (AFSL 492354) ACN 615 154 786 (Zagga) for information purposes only. It doesn’t take into account your objectives, financial situation or needs, nor is it intended as a substitute for any accounting, tax or other professional advice, consultation or service. Nothing in this article shall be construed as a solicitation to buy or sell any financial product, or to engage in or refrain from engaging in any transaction.

Past performance should not be taken as an indication or guarantee of future performance and no representation or warranty, express or implied, is made regarding future performance. Economic conditions may change.

Any analysis provided in this article is based on information obtained from sources believed to be reliable but Zagga does not make any representation or warranty that it is accurate, complete or up to date. Zagga accepts no obligation to correct or update the information or opinions in it. Any opinions expressed in this article are of the author and is subject to change without notice. Readers are reminded to exercise caution and use their own judgment when interpreting and applying the information contained in this article No member of Zagga accepts any liability whatsoever for any direct, indirect, consequential or other loss arising from any use of such information.

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