Specialist real estate private credit investment manager, Zagga, has secured $65 million through an oversubscribed corporate note arranged by fixed income specialist, FIIG Securities.
The four-year, senior secured note closed 30 per cent over its target figure of $50 million, offering investors access to a quality fixed income investment with a current yield of ~7.85% per annum (Bank Bill Swap Rate (BBSW) + 4.20%).
STOCKHEAD & THE AUSTRALIAN
Australia’s favourite asset isn’t listed on the ASX. It’s the thing people live in, argue over at auctions, and quietly trust as their financial foundation long after the dinner table conversations have ended.
Today, the residential property market is worth more than $12 trillion – much larger than the size of the Australian sharemarket – with about 55% of household wealth tied up in bricks and mortar.
Mixed news on the economy and an uptick in inflation has seen the RBA move to a neutral bias for interest rates. This means that the medium turn outlook has switched from expectations for lower interest rates to one now steady interest rate settings are expected into 2026.
At the same time, the housing market is recovering. New dwelling building approvals have rebounded strongly although the level of activity remains below the rate needed to address the housing shortage.
At an exclusive investor luncheon co-hosted by Zagga and JAR Wealth Management Singapore, guests gathered to explore the intersection of global portfolio positioning, macroeconomic outlook, and the growing opportunity in Australian private credit.
October brought mixed signals for Australia’s economy — and a growing dilemma for the Reserve Bank.
The RBA held rates steady at its latest meeting, citing elevated inflation and a rising unemployment rate. With its dual mandate to support full employment and keep inflation near 2.5%, the central bank faces a tough choice: cut rates to support jobs, or hike to contain prices.
STOCKHEAD & THE AUSTRALIAN
As ESG stops being a buzzword and starts shaping real investment decisions, Zagga’s move to join the UN’s Principles for Responsible Investment shows how responsible capital is now being used to build, not just profit from, Australia’s future.
Real estate private credit can play defence in portfolios amidst heightened market volatility.
As real estate private credit dominates headlines, it is easy to believe it’s a new, speculative asset class that has just burst onto the scenes. In reality, it’s a globally proven, established asset class with decades of demonstrated success in building more defensive portfolios. In Australia, we are yet to fully realise the scale of this opportunity. By being proactive about risk management, exercising caution amidst uncertainty, and carefully balancing risk and returns, investors can take a risk-off approach to exploring an allocation to real estate private credit and help to unlock its full potential.
THE GOLDEN TIMES
With alternative investments having growing appeal, the need for self-funded retirees and their advisers to do their due diligence has never been more important – as a recent ASIC report highlighted.
The demise of the $40 billion hybrid market by 2032 will simply fuel the growing appeal of private credit – especially for self-funded retirees.
The unemployment rate spiked to a four year high of 4.5 per cent in September, up from 3.4 per cent at the low of the cycle and is now above the RBA’s forecast made in August for a peak of 4.3 per cent. The result rekindled expectations for further interest rate cuts, as soon as its next meeting on 4 November.
Recall that under the revised mandate of the RBA, maintaining full employment sits along side the inflation target as a fundamental objective of the Bank. The key data ahead of the next RBA meeting is the September quarter inflation data which is scheduled for 29 October.
SELFMANAGEDSUPER
The recent experience of a fund manager specialising in private credit suggests more SMSF trustees are looking to include this asset class in their fund portfolios.
“This year since 1 July, that is the start of the financial year, over 30 per cent of the new entities that have been registered for investment with our business have been SMSFs,” Zagga executive director Tom Cranfield told selfmanagedsuper.
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
All portfolio numbers quoted correct as at 1 October 2025.
*Average investor return across the active portfolio as at 1 October 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 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.
