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, Dash, 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.
