COVID, crisis & catalysts:

The rise and rise of alternative lending

Value vs growth in uncertain times

This white paper takes a look at the Commercial Real Estate Debt (CRED) market; What is it? Why it is growing? And how can investors seeking attractive, predictable income in an unpredictable world benefit from it?

Rethinking risk and return

Since 2020, asset prices have soared across everything from residential homes to tech stocks. Interest rates for cash and term deposits aren’t keeping up with inflation.

Investors are continuing to look beyond traditional barbell approaches of cash/bonds for safety and equities for risk in order to meet their lifestyle costs.

In this context, the growth of alternative lending has been remarkable – but not surprising.

In particular, Commercial Real Estate Debt (CRED) has been boosted by investor interest and borrower demand as the property sector maintained strong momentum. Zagga has been a beneficiary of this trend, as a relatively early entrant to the market, with a strong reputation and solid origination pipeline.

Australian CRED is among the few asset classes that offer both capital preservation and attractive risk-adjusted returns.

Traditionally the asset class was only available to wholesale investors. However, in recent years, select opportunities have become available to self-managed superannuation funds and other self-directed investors in the Australian market.

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