Navigating the Rise of Australian Commercial Real Estate Debt: Opportunities and Insights

Source: Investor Daily
Moderator: Maja Garaca Djurdjevic
Date: 22 August 2024

WEBCAST

Zagga’s Director, Investment & Risk Tom Cranfield, joined fellow industry leaders, Andrew McVeigh, remara and Nick Raphaely, AltX to discuss the rapidly evolving Australian commercial real estate debt sector.

Over recent years, Australian commercial real estate debt has witnessed remarkable growth, reaching an impressive $447 billion by June 2023. Non-bank lenders have become pivotal players, commanding a substantial $74 billion market share. This transformation reflects significant market dynamics and regulatory reforms, prompting investors to explore alternative financing options.

With attractive yields, low correlation with other assets, and resilience during economic uncertainties, Australian commercial real estate debt presents a promising opportunity for investors seeking stable returns.

Hosted by Investor Daily, this webinar delved into the factors driving this growth, the challenges and opportunities for non-bank lenders, and the future trajectory of the Australian commercial real estate debt sector.

Key discussion points:

  • the surge in demand for CRE debt from both borrowers and investors
  • housing supply/demand imbalance as a critical factor driving CRE debt growth
  • the impact of builder insolvencies on the construction sector and its investment viability
  • reasons borrowers opt for non-bank/private lender money despite higher costs
  • the future of non-bank lenders and the potential for major banks to reclaim market share
  • sensitising for market movements and the impact of commercial property value fluctuations
  • the benefits of different forms of property credit exposure and their risk/return profiles in a sideways property market

Watch the playback below

Articles (including white papers and audio or video content) and FAQs on this website have been prepared by Zagga Investments Pty Limited (AFSL 492354) ACN 615 154 786 (Zagga) for general information only. They do not take into account your objectives, financial situation or needs, and are not a substitute for accounting, tax or other professional advice. Nothing in these articles or FAQs is an offer or solicitation to buy or sell a financial product, nor a recommendation to enter into or refrain from any transaction.

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The growth of Australia’s real estate private credit market is gaining significant attention, with the segment forecast to near $90 billion by the decade’s end. In this Ausbiz

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*Average investor return across the active portfolio as at 31 December 2025.

**Target return is after expenses and any applicable management fees for the year ended 30 June 2026. OCR = Australian Reserve Bank Official Cash Rate.

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Articles (including white papers and audio or video content) and FAQs on this website have been prepared by Zagga Investments Pty Limited (AFSL 492354) ACN 615 154 786 (Zagga) for general information only. They do not take into account your objectives, financial situation or needs, and are not a substitute for accounting, tax or other professional advice. Nothing in these articles or FAQs is an offer or solicitation to buy or sell a financial product, nor a recommendation to enter into or refrain from any transaction.

Any analysis provided in the articles (including white papers and audio or video content) or FAQs on this website is based on information believed to be reliable, however Zagga does not represent or warrant that it is accurate, complete or up to date. Zagga is not obliged to update the information or opinions contained in any article it. Opinions are those of the author and may change without notice. Readers should exercise their own judgment when relying on information contained in the articles or FAQs. To the maximum extent permitted by law, no member of Zagga accepts liability for any loss arising from the use of such information.

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