Australian real estate lures investors seeking alternative income

Source: Nikkei Asia
Author: Jada Nagumo
Date: 15 July 2025

Private credit company Zagga expects interest from Japan and Singapore

The real estate sector in Sydney and other big Australian cities is attracting growing interest among overseas investors. © Reuters

TOKYO — Investors hunting for some safe haven income are turning to Australia’s growing real estate sector boosting companies that help them direct their money into loans to property developers.

The country’s robust but predominantly inwardly focused economy, contained inflation and growing population make it a safe and stable investment destination with lower levels of volatility, according to Zagga, a player in the country’s private real estate credit market.

Private debt financing involves lending money to a company against an agreed upon amount of collateral through funds or even direct lending by investors.

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Zagga Fund Update – For the Quarter ended 31 December 2025

Zagga concluded the December quarter with $410 million in originations, bringing the FY26 year-to-date total to $663 million. The Zagga Feeder Fund (ZFF) grew by 155% in CY25, now comprising

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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 Information

All portfolio numbers quoted correct as at 31 December 2025.

*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.

Past performance is not a reliable indicator of future performance, and should not be taken as an indication or guarantee of future results. Investments involve risk, fees and costs, and returns are not guaranteed. No representation or warranty is made regarding future performance, and economic conditions may change.

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.

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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