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.
As we look ahead, Zagga remains focussed on maintaining disciplined credit standards, protecting investor outcomes, and identifying opportunities that continue to deliver reliable income returns with capital preservation at it’s core. We thank our investors for their continued confidence and support.
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.
FS SUSTAINABILITY
Specialist real estate private credit investment manager Zagga has signed onto the UN-backed Principles of Responsible Investing (PRI).
In doing so, Zagga joins a global network of responsible investing advocates, and formalises its commitment to integrating ESG principles into its investment decisions and operational practises.
INVESTOR DAILY
As a Principles for Responsible Investment (PRI) signatory, Zagga has committed to integrate sustainability factors into all investment stages, from analysis to reporting.
Zagga first established its independent ESG advisory committee back in 2023, which is mandated to advise and oversee the integration of environmental, social and governance (ESG) considerations into Zagga’s investment and operational strategies.
After several months of encouraging data, the latest figures have brought a dose of reality: Australia’s economic momentum has slowed. Household spending has softened, building approvals have slipped, and sentiment has weakened — prompting renewed speculation that the RBA may deliver another rate cut before the end of the year.
As the private credit asset class continues to expand, the role of environmental, social, and governance (ESG) considerations has become central to how investment managers assess risk, manage portfolios, and deliver long-term value.
In a recent interview, Zagga Executive Director, Frank Hageali shared how the firm is integrating ESG into its credit risk process and what this means for investors, developers, and communities.
The story is not just about growth—it’s about what private credit represents, both for investors and for the communities who ultimately rely on the projects it funds.
The rise of private credit in Australia didn’t happen by accident. Regulatory changes curtailed the lending appetite of traditional banks, leaving developers and businesses searching for alternative sources of finance. Into that space stepped specialist managers like Zagga, focused on commercial real estate credit.
The RBA appears content to leave policy on hold for the foreseeable future. With inflation under control and the economy showing cautious improvement, aggressive rate cuts are unlikely in the remainder of 2025. Any shift in policy is more likely to be down than up — but timing will depend on how consumer demand and the labour market evolve.
ALTERNATIVE FUTURE FOUNDATION
As part of Sydney Alts Week 2025, our Executive Director, Tom Cranfield, sat down with Nina Dunn, Director of the Alternative Future Foundation
WEALTH & SOCIETY
The PRI is the world’s leading advocate for responsible investment. Joining its global network formalises Zagga’s commitment to embedding Environment, Social, and Governance (ESG) considerations across investment and operational decision-making and practices.
Nikki Kemp, Singapore-based Independent Chair of Zagga’s ESG Committee, Director of Singapore Green Finance Centre and former World Economic Forum Executive, said this was an important milestone signalling Zagga’s determination to integrate ESG at every level.
STOCKHEAD & THE AUSTRALIAN
When share prices climb faster than profits, dividend yields naturally shrink. So while stocks look elevated, those once-reliable cheques don’t carry the weight they used to.
For income-hungry investors, the hunt is on for something steadier.
One corner of the market that’s quietly moving into the spotlight is private credit – and in particular, real estate-backed private credit.
Consistent, steady, predictable returns, along with the magic of compounding, are what protect, preserve, and build capital. When it comes to investing for long-term wealth, it pays to be boring. While equity markets rise and fall, real estate private credit has delivered steady, uncorrelated returns.
While this may seem boring to some investors, for us, that very consistency is what makes real estate private credit worthy of consideration in every investor portfolio.
Growing evidence of a recovery in GDP growth, including household spending, has seen the futures market pare back pricing for future interest rate cuts. In effect, one 25 basis point interest rate cut has been ‘taken out’ of market pricing in the past month to the point where just two further cuts are priced between now and the middle of 2026.
STOCKHEAD & THE AUSTRALIAN
The term ‘commercial’ has been synonymous with property for decades. It conjures images of office towers, industrial blocks, and retail precincts. However, in the context of commercial real estate debt (CRED) – part of the broader real estate private credit market – commercial doesn’t describe the building, but rather, the underlying loan transaction. It’s about lending to a commercial borrower, typically a developer, and assessing the quality of the sponsor, the project, risk exposure, and execution. Tom Cranfield, Executive Director of Risk & Execution at Zagga, explains why this distinction matters for investors.
There is a growing list of economic indicators pointing to stronger growth in consumer spending and sentiment, dwelling construction, business confidence and exports. These more favourable trends have been positively influenced by falling inflation and solid wages growth.
STOCKHEAD & THE AUSTRALIAN
SMSFs are turning to private credit, says Zagga, which is focused on showing “commercial” lending is less about skyscrapers and more about strong sponsors, steady margins and projects that actually stack up.
The Reserve Bank of Australia has delivered its third interest rate cut of 2025, trimming the cash rate by another 25 basis points. Since the start of the year, cumulative rate reductions have begun to pack more of a punch — and the RBA hopes this momentum will help bolster economic growth and prevent unemployment from climbing too far.
At the recent Commercial Property & Development Finance Summit, industry leaders came together to discuss one of the most significant shifts in Australia’s commercial real estate finance — the rapid rise of private credit.
SMSF ADVISER
Tax has historically been levied on realised gains – profits made, not valuations. Division 296 breaks that tradition, creating a scenario where investors may owe tax on unrealised gains – values that could just as easily reverse.
This adds complexity for investors: it’s no longer just about selecting asset classes, but about structuring portfolios to manage tax exposure.
STOCKHEAD & THE AUSTRALIAN
While the benefits of CRE debt are increasingly recognised, one fundamental question persists: how should investors access real estate private credit – directly or via a fund?
Both routes can be rewarding. What also needs to be considered is manager selection and doing your research to understand the structure, liquidity terms, and underlying credit processes. Now is the time to be diversified and defensive; in today’s uncertain investment environment, Australian real estate private credit is being duly recognised as an asset class of choice.
STOCKHEAD & THE AUSTRALIAN
As the dust settles on a turbulent financial year, and Division 296 looms large on the super tax horizon, Aussie investors are waking up to a sober truth: you don’t have to shoot the lights out to build a smart portfolio. Sometimes it’s about holding the torch steady.
The focus has now shifted from big swings for capital growth to something a little more… sensible. Income, consistency, capital preservation.
And that’s why private credit, a once-niche corner of the market, is starting to get more airtime.
Persistent volatility and increased correlation across asset classes have led investors to look beyond conventional tools in search of better defensive strategies to protect income and build long-term resilience. This has accelerated interest in alternative asset classes—particularly real estate private credit.
Unlike traditional bonds, which tend to lose value when rates rise, floating-rate real estate credit adapts with the market, making it a powerful tool in modern defensive strategies to protect income.
Confirmation of on-target inflation and further evidence of a sluggish pace of economic growth was not enough for the RBA to lower interest rates at its 8 July meeting. It surprised economists and the market, leaving official interest rates at 3.85 per cent, just 50 basis points down from the peak. A 25 basis point cut was expected and priced into markets.
NIKKEI ASIA
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.
Our strategy remains firmly focused on disciplined, conservative growth. Safeguarding our investors’ capital is our highest priority. For FY26, our objective is to continue increasing FUM by sourcing high-quality opportunities from accredited borrowers and trusted introducers. We remain committed to innovating and diversifying how these investments are structured and delivered to best serve all stakeholders
The Reserve Bank of Australia surprised markets and economists alike this month by holding interest rates steady, despite clear signs that inflation is returning to target levels. The decision, announced on 8 July, came as a surprise to many who had expected a rate cut, given the recent softening in inflation data. In short, the direction of rates hasn’t changed – but the timing has. The market still anticipates rate cuts later in the year, just not as soon as originally expected.
In this update, we share an overview of the current market environment and highlight how we are adapting to changing conditions while remaining focused conservative and prudent risk management.
“Zagga remains well-positioned to deliver superior performance, backed by deep expertise, a strong strategy, and proven risk management.” – Steven Levy, Executive Director
The Australian Wealth Management Awards is an unparalleled awards program that identifies the top businesses and professionals in the wealth management profession across the nation.
“We’re honoured to be recognised alongside some of the industry’s best. This achievement reflects the hard work of our team, the trust of our investors, and our shared belief in the role private credit can play in building more resilient, income-generating portfolios.”
STOCKHEAD & THE AUSTRALIAN
While the government argues Division 296 will only affect a small portion of Australians, it’s clear that SMSFs – often used by high net worth individuals to manage their retirement wealth – will feel the brunt.
If the tax does go ahead, it could lead to some big shifts in how super is used, and investors are likely to look for other places to park their wealth, such as trusts or companies.
That’s where private credit, like Zagga’s core offering, could come in for these investors.
STOCKHEAD & THE AUSTRALIAN
Traditionally, defensive investing meant a tilt toward fixed income – bonds and cash. For more cautious allocators, it also included real assets like gold. These assets were expected to provide protection when equities fell. But that assumption has been increasingly challenged in an environment where market correlations behave differently than they once did.
One asset class rising to meet this moment is private credit. At Zagga, we see firsthand how this market is maturing, how demand is growing, and how investors are shifting their thinking.
The moderate pick up in house prices in recent months is linked to a stalling in the growth of new supply, with new listings for sale falling and immigration inflows above official forecasts in the March quarter 2025. The resilient strength in the labour market has, for now, helped to support the housing market which has been further assisted by the early effects of lower interest rates.
THE URBAN DEVELOPER
The transformation of a century-old Melbourne building—from silk merchant to police station, backpackers’ accommodation to premium commercial space—proves that heritage adaptive reuse projects are possible. The successful conversion of Invicta House demonstrates how heritage buildings can deliver viable returns when developers combine careful planning with experienced design teams and flexible funding structures.
Our CEO, Alan Greenstein, takes a moment to reflect on how far Zagga has come since its inception – “None of this would have been possible without the ongoing support of our investors, the loyalty of our borrowers and introducers, the excellence of our service providers, and the deep capability and character of the Zagga team — from our Day One originals to our newest recruits.”
STOCKHEAD & THE AUSTRALIAN
While the spotlight is on the building, the real story behind Invicta’s comeback was how it was funded.
Instead of going cap in hand to the big banks, STRE went the private credit route, and that flexibility made all the difference.
“Private credit, and in particular Zagga, provided quite a compelling option for us due to its flexibility and deep understanding of construction finance,” Burrows said.
STOCKHEAD & THE AUSTRALIAN
Not all credit is created equal and thorough due diligence is essential. But, while prudent risk assessment is essential, investors must also separate fact from fiction. In private credit, persistent myths often cloud judgement and hold investors back from otherwise sound opportunities.
STOCKHEAD & THE AUSTRALIAN
In today’s evolving funding landscape, banks, government initiatives, and private credit each play a vital role. While public infrastructure is best driven by government, and banks continue to support traditional home lending, private credit investment firms like Zagga offer the flexibility and responsiveness needed to fund complex mid-market projects – bridging the gap where timing, structure, or risk profile may fall outside conventional parameters.
Melbourne currently ranks sixth among Australian capitals in property values, trailing Canberra, Adelaide, Perth, Brisbane and Sydney. Yet, at a recent investor event hosted by Zagga, a panel of leading industry voices noted, this relative affordability presents a strategic entry point for growth — particularly given the city’s strong fundamentals and development potential.
Renovation showcases ability and agility of private credit to support commercial development as the historic Invicta House in Melbourne’s Flinders Lane officially opens this month after a comprehensive renovation and expansion breathing new life into the 100-year-old building.
The rating was awarded to the Zagga Investments Lending Trust (ZILT), which now manages over $1 billion in active loans and has facilitated more than $2.5 billion in commercial real estate lending since inception. The Trust’s performance has remained robust, with predictable, transparent, consistent returns across its portfolio. The SQM Report confirms that Zagga’s lending platform and fund structure continue to offer ‘appreciable potential to outperform over the medium-to-long term,’ and cites the team’s deep industry experience, stringent credit processes, and strong borrower relationships. The report further highlights the firm’s purpose-built platform, sophisticated risk controls, and ability to offer investors exposure to mortgage-secured, short- to medium-term loans.
INVESTOR DAILY
In buoyant times, it’s easy to overlook the role of the steady and stable parts of a portfolio – the conservative income-generators that don’t make headlines. But these are exactly the assets that provide stability when everything else is in flux. Yet the traditional 60/40 portfolio is no longer proving a robust stronghold among record volatility. Traditionally, multi-asset portfolios have relied on the negative correlation between bonds and equities for diversification. However, increasingly, we are seeing a positive correlation in public markets. The year 2022 was an extreme example, where we saw significant correlated dips in both bonds and equities, and it is what we have again seen repeated in the most recent bout of market volatility.
AUSBIZ
Alan Greenstein, Zagga CEO & Co-Founder, points out a rising trend from public to private markets globally, hinting at Australia’s potential growth. With a new real estate credit fund in Singapore, diverse currency options and tax benefits await investors, Alan tells Ausbiz.
GREEN STREET NEWS
Sydney-based private credit firm Zagga has launched a new Singapore fund to tap into the growing Asian capital appetite for private lending on Australia commercial real estate, Green Street News can reveal.
Given current economic conditions, there is near unanimity that the RBA will resume its interest rate cutting cycle on 20 May with further interest rate cuts expected over the following 12 months. Low inflation, a soft economy and signs of a weakening in the labour market are all factors that has markets pricing in a cash rate below 3 per cent in the first half of 2026, down from the current 4.10 per cent.
STOCKHEAD & THE AUSTRALIAN
With ASIC shining a light on fast-growing private markets, finding the sweet spot between regulation and investor protection is critical explains Alan Greenstein, CEO and co-founder of specialist real estate private credit investment manager Zagga.
FEAR AND GREED
Sean Aylmer speaks with Tom Cranfield, Executive Director at Zagga, about the rise of real estate private credit as a defensive asset. Tom explains how tighter bank lending has opened opportunities for alternative lenders, offering stable returns and low correlation to public markets. They also look at the growing role of private credit in portfolio diversification, particularly in the face of volatility on equity markets.
STOCKHEAD & THE AUSTRALIAN
With market volatility on the rise, investors are increasingly prioritising steady returns and capital preservation. Zagga’s conservative real-estate backed lending aims to offer exactly that. But as capital pours into the sector and headlines follow, it’s becoming increasingly clear: not all private credit strategies are built the same.
Global investors and policy makers continue to assess the extent of the negative impact of US President Trump’s tariff policies. It is likely to remain a moving feast in the months ahead with some retaliation and adjustments to the tariff plans seemingly inevitable. One thing where there is unanimity is the effect of the tariffs – negative for international trade and global economic growth. The major uncertainty is the extent of the fallout.
Explore how policy tailwinds and market demand are aligning to make private credit a smart play in Australia’s evolving real estate landscape.
The impact of the budget on macroeconomic conditions is broadly neutral, which was confirmed with the muted reaction in financial markets to the budget. The pre-conditions are in place for the RBA to deliver further interest rate cuts but the timing of the next rate reduction is, at this stage, open.
SUPER REVIEW
The consensus among alternative investment managers and the broader industry is that an added regulatory impost would stifle returns in private markets.
FS SUPER
With unrest and uncertainty rippling through markets and shaking investor confidence, we have seen a surge in private credit’s popularity – offering potential for reliable, steady income, protection against inflation, and diversification away from public markets. As this growth continues, private credit is set to become an even greater focus for investors, borrowers and regulators.
Traditionally, multi-asset portfolios have relied on the negative correlation between bonds and equities for diversification. Yet, increasingly, we are seeing a positive correlation in public markets. 2022 was an extreme example, where we saw significant correlated dips in both bonds and equities. With current heightened volatility in global markets, investors need true diversification and downside protection via uncorrelated asset classes.
As public markets fluctuate, the need for portfolio resilience and alternative income sources has never been greater. This has driven institutional and high-net-worth investors to seek diversification in uncorrelated asset classes, such as real estate private credit.
THE AUSTRALIAN
Just as corporate bonds provide an alternative to buying shares in companies, CRED provides exposure to the property market without needing to own the assets. However, unlike bonds, which depend on the yield curve, CRED offers a contracted return from day one.
AUSBIZ
Alan Greenstein, Zagga CEO & Co-Founder, joined Ausbiz to discuss how declining interest rates are shaping private markets and what this means for both investors and borrowers.
Despite the RBA commentary, financial markets are continuing to price in further interest rate cuts with a cash rate of approximately 3.40 per cent factored in by the first half of 2026. Softer economic data out of the US in recent weeks has helped reinforce the market pricing for lower interest rates.
INVESTOR DAILY
“I don’t think more regulation is going to necessarily improve the outcome of the performance and all that will do potentially is erode returns.”
FIXED INCOME NEWS AUSTRALIA
The Australian Securities & Investments Commission has released a discussion paper on the dynamics between public and private markets.
INVESTOR DAILY
ASIC has warned private market operators as it moves to expose the opaque market to greater transparency.
SUPER REVIEW
Despite easing rates, the Australian private credit market is poised to continue attracting investors seeking stable, income-generating alternatives to traditional fixed-income assets.
INVESTOR DAILY
Despite global uncertainty, Australia’s private credit market is predicted to see strong growth in 2025, fuelled by business lending and attractive returns, as the Reserve Bank’s cautious rate cuts support continued demand.
Can defensive investments protect your portfolio and provide stability? Zagga’s Director of Investment & Risk, Tom Cranfield, shares the strategies and opportunities you need to know about.
The important news in the first month of 2025 centred on a further sharp deceleration in inflation, the full pricing in of a series of interest rates cuts from the RBA and the start of the Trump Presidency in the US.
The other major issue to unfold in Australia is falling house prices at a national level, but it remains the case that market conditions are uneven from city-to-city…
Explore the causes of Australia’s housing shortage, its impact on the economy, and potential solutions for individuals to address this pressing issue.
We are very pleased to report that all Funds across the Zagga portfolio have performed very well for the period ended 31 December 2024.
FORESIGHT ANALYTICS
ZCF has been assigned a VERY STRONG rating indicating a very strong level of confidence that the manager can deliver a risk-adjusted return in line with its investment objectives. Foresight Analytics & Ratings designation as a COMPLEX product indicates that the underlying assets require specialist investment skills to acquire, manage and monitor.
A busy 2024 ended with the RBA holding official interest rates where they started the year – at 4.35 per cent.
Explore the world of commercial real estate debt in Australia. A strategic allocation to private commercial real estate debt: A pathway to defensive returns
Discover the intricacies of real estate private credit in Australia. This article explores the recent growth of this alternative asset class and offers valuable insights into the future of real estate private credit.
CEO & Co-Founder, Alan Greenstein, reflects on 2024, the challenges and opportunities for the Australian economy and the private credit sector, and what these mean for our clients.
AUSBIZ
Tom Cranfield, Director, Investment & Risk, joined Ausbiz to discuss the critical role private credit plays in financing sustainable housing and tackling Australia’s housing supply shortage.
Insights from industry experts on navigating a shifting economic landscape at a recent Zagga Fireside Chat where the panel discussion centered on the topic “Adapting to change: The opportunities and challenges for developers and investors in a shifting economic landscape”.
THE URBAN DEVELOPER
The commercial property market has become a cautionary tale for many investors as they turn to private credit as an alternative pathway to property, writes Tom Cranfield, Director, Investment and Risk.
The RBA has now held official interest rates steady for more than a year despite the substantial fall in inflation, the weak economy, the slowing in wages growth and the flood of interest rate cuts around the world.
YOUR INVESTMENT PROPERTY
With the commercial property market facing challenges, private credit is becoming a smart way for investors to still get good returns while avoiding too much risk.
THE TIMES
Leading boutique private credit investment manager, Zagga, has partnered with award-winning, celebrity landscape designer, Jamie Durie, on his latest project, a luxury home set to be one of Australia’s most sustainable builds.
THE REAL ESTATE CONVERSATION
Zagga, has partnered with award-winning, celebrity landscape designer, Jamie Durie, on his latest project, a luxury home set to be one of Australia’s most sustainable builds.
THE GOLDEN TIMES
With many economists expecting the Reserve Bank to start cutting interest rates in early 2025, returns on term deposits could feel the pinch. Private credit is an alternative, but those pursuing this investment option will need to do their homework – thoroughly.
Private real estate credit in Australia offers a unique investment opportunity for investors looking to diversify their portfolios, access defensive assets, and achieve attractive risk-adjusted returns. With the market for private credit continuing to grow, and non-bank lenders becoming more prominent, this asset class represents a valuable addition to a well-balanced investment portfolio.
Discover the intricacies of private debt, its role in the Australian market, and how it can benefit your investment strategy. Explore the advantages and risks, and learn how Zagga can help in your investment journey.
THE URBAN DEVELOPER
Zagga Director, Frank Hageali says the growth of the non-bank lending sector warrants a framework. He says it could include accreditation, compliance, CPD and education, regular communication of industry related matters to members, membership, committees and potential rating systems.
The last month has seen what might be called “green shoots” of an economic recovery in Australia, aided by an easing in cost of living pressures as inflation has retreated towards the RBA target band.
It is important to note that these encouraging signs are from a weak starting point – it is too early to be confident of a meaningful economic recovery, but it is encouraging to see some better news.
Private credit can avoid the volatility often seen in public markets for products such as bonds – which are extremely sensitive to interest rate movements and sentiment – instead, providing a predictable income stream based on the loan’s interest rate and duration.
Looking for higher returns and diversification? Dive into alternative real estate investments in Australia – discover new opportunities & explore how Zagga can help you build a stronger portfolio.
Unlock attractive returns in the Australian commercial real estate market. Explore debt opportunities, market trends, and how Zagga can help investors achieve their financial goals. Contact us today!
Despite playing an important role in the property ecosystem, CRED is often shrouded in myths and misinformation. Here, we help you master the CRED market, busting myths, understanding the role of alternative lenders, and providing tips and tricks on navigating this growing asset class.
DOMAIN
This sad wreck of a terrace house in Sydney’s Redfern, abandoned by its owner, then occupied by a squatter and, as a final insult, set on fire, was once labelled ‘Australia’s worst house’.
SELFMANAGEDSUPER
Zagga has achieved an increased global presence with the registration of its CRED fund as a foreign investment trust in Japan. The development means the Fund will now be available for Japanese investors seeking exposure to the Australian real estate private credit sector and the benefit of its characteristics, such as providing increased diversification, delivering a strong source of income and enhancing the defensive component of a portfolio.
In summary, economic growth in the Australian economy remains weak, the unemployment rate is rising, wages growth is slowing and inflation is falling back towards the RBA’s 2 to 3 per cent target. The interest rate hikes since May 2022 are working.
The Zagga CRED Fund is now available for investment by wealth advisors in Japan, catering to the increasing demand among investors for alternatives that provide stable returns and serve as a hedge against market volatility. This expansion underscores Zagga’s commitment to offering its innovative investment solutions to a broader audience.
INVESTOR DAILY
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.
Real estate private debt can offer unique benefits, for both investors and borrowers. For income-seeking investors, the offer of attractive, reliable and risk-mitigated returns backed by a tangible, real property asset can be a compelling investment case.
YOUR INVESTMENT PROPERTY
The Federal Government is acutely aware that property prices are a simmering intergenerational issue and while ‘build more homes’ seems like a sensible solution, the reality is achieving this goal is more difficult than the campaign slogan sounds.
SELFMANAGEDSUPER
Private credit can avoid the volatility often seen in public markets for products such as bonds – which are extremely sensitive to interest rate movements and sentiment – instead, providing a predictable income stream based on the loan’s interest rate and duration.
INVESTOR DAILY
Explore the dynamic and rapidly evolving world of Australian commercial real estate debt in this webcast featuring Zagga Director, Tom Cranfield.
NO HAIR, JUST FINANCE
Zagga has carved a niche in the finance industry by providing innovative lending solutions that resonate with today’s challenges. Tom will share insights into what makes Zagga stand out in the competitive finance landscape, discuss the current economic environment, and share a few ‘war stories’ from the field.
In what could turn out to be an unwelcome tension in the economy, the weak economy continues to underpin a lift in the unemployment rate, while the pace at which the rate of inflation is falling is slower than the RBA would like.
Our FY24 numbers are in and we are incredibly proud of the result delivered through much hard work by our exceptional team across five locations and the support of our investor and borrower clients.
The broad economic themes that kicked off 2024 remain in place, with economic weakness, unemployment moving higher and inflation set to fall to the RBA’s 2 to 3 per cent target.
Explore private debt investments as a stable and credible alternative to traditional methods. Learn how to access investment opportunities in commercial real estate debt, understand risks, and potentially boost your portfolio returns. Contact Zagga to discuss your options.
Recently returned from a trip to a number of SE Asian countries, Zagga CEO & Co-Founder, Alan Greenstein, shares his thoughts on the increasing appeal of Australian real estate private credit among family offices in the Asia-Pacific region amidst global economic shifts and how this alternative asset class can be an attractive option for both foreign and local investors.
Australian investors seeking alternative investments? Explore active vs. passive investment strategies and discover why real estate private credit fund might be worth considering.
THE URBAN DEVELOPER
The Vue le Pont development is a multi-level building designed to the highest standard, with views of Sydney Harbour, the bridge, and the city. It is expected to garner appeal from locals, expats, and high-net-worth international buyers, who are looking for ‘lock-up & leave’ right-sized product situated within the local neighbourhood.
The Australian private credit asset class has become increasingly popular among investors, so it’s no surprise that the number of investment managers in this space has grown to meet the demand. One of the appealing aspects of debt-based investments is the ability to provide capital protection by holding a registered mortgage security over a real asset.
The past month was dominated by news of weaker economic growth, a still fragile labour market and an upward blip in inflation. There was no surprise when RBA left interest rates steady at 4.35 per cent after its June meeting, meaning there has been no policy change since the last rate hike in November 2023.
We have grown from an idea into an independent alternative investment manager focused on commercial real estate debt. Looking ahead, we are excited about the opportunities available to us, and our ability to originate secured investments, underpinned by high-quality commercial real estate assets, with strong, credible counterparties, offering consistent returns.
FINANCIAL REVIEW
With developers knocking on their door for finance, Zagga CEO and co-founder Alan Greenstein said the group’s aspirations were to “slowly and carefully” double its funds under management to about $1.5 billion and attract a deep pool of funders. “Non-bank lenders have carved out a space for themselves in the market by offering a highly credible solution,” Mr Greenstein told The Australian Financial Review.
Learn how alternative investments like commercial real estate debt can complement traditional portfolios for less volatility and more reliable income
Explore feeder funds vs direct investments in real estate private credit. Diversify your portfolio by investing in this growing asset class – discover the best approach for you.
The Australian property market continues to deliver stable results in most jurisdictions despite the higher cost of living currently being experienced by many Australians… The construction sector remains tight with pressure on supply-chains relating to materials and labour evident, however we are seeing trends suggesting we are at, or very close to, the top of the price-hiking cycle.
SELFMANAGEDSUPER
SMSF investors can access private credit opportunities through the Zagga CRED fund, which is a unitised version of the Zagga Feeder Fund. The underlying investments for the offering are high-quality, mortgaged-secured loans in the commercial real estate sector.
Markets are volatile. Weak economic conditions and falling inflation has rekindled expectations of interest rates cuts in Australia and much of the industrialised world in coming months… The next readings on inflation and unemployment will be critical in the timing of those cuts.
Debt is one of the most fundamental layers of the commercial real estate capital stack. Explore the nuances of the different layers of debt and equity to understand the important role of debt in the overall capital stack.
Debt is one of the most fundamental elements of the commercial real estate capital stack. Explore the nuances of the different layers of debt to understand the role it plays in the overall capital stack.
FEAR AND GREED
Australia is still in the midst of a housing crisis. House prices have risen for 15 consecutive months. Rents are soaring. Demand is outstripping supply. Alan Greenstein talks to Sean about the potential for private credit to make a difference to the housing crisis.
The Australian economy has continued to track at a low growth rate with inflation continuing to ease. As a result of these trends, the RBA has moved to a clear neutral bias dropping the ‘next move is likely to be up’ comments at its March meeting.
NSW continues to grapple with a significant housing shortage. Economic forecasts project a substantial increase in population over the next five years, further exacerbating the current housing situation… Looking forward, we remain buoyed by the market opportunity for us to fund many future projects.
Explore commercial real estate debt funds – an alternative investment option that can provide regular income and capital preservation benefits, all secured by Australian real estate. Invest via a real estate debt income fund for professional management and diversification benefits. A credible alternative for income-seeking investors.
As we step into the second quarter of 2024, it’s imperative to reflect on the economic landscape that shaped the preceding months. In Australia, the first quarter of 2024 was marked by a blend of optimism and caution, as various sectors navigated through both challenges and opportunities. Among the focal points of discussion was the state of commercial real estate debt (CRED), a critical component influencing the overall economic outlook.
Sick of riding the ups and downs of the sharemarkets? Explore alternative asset classes for stable, risk-adjusted returns, diversification and capital preservation. Learn about private credit, alternative real estate investing and more.
SQM RESEARCH
The Zagga Investments Lending Trust rated 4-star, SUPERIOR rating for fourth year running.
While there remain reason to be cautiously optimistic about the outlook for the economy later in 2024, the RBA needs confirmation that inflation is tracking towards the mid-point of its 2 to 3 per cent before moving to cut rates. This is likely to come the next quarter or two as the current sluggish growth dampens the pricing power of business and with that inflation is driven lower.
Discover the strategic significance of alternative investments in achieving a truly diversified portfolio. Explore the key benefits and challenges of diversification, and learn how incorporating alternative assets can enhance your risk-adjusted returns.
Current economic, real estate and investment trends driving the discussions at the PERE Asia Conference underscore the promising outlook for investors in private credit. The appealing fundamentals of Australia, coupled with the preference for fixed income strategies and low volatility, highlight the need for private credit to be a key component of every investor’s portfolio.
We recently shared news that our very own, Frank Hageali, Zagga’s Director, Property & Risk, has been appointed a member of the Property Council of Australia’s NSW Precincts Committee. As part of this new appointment, we asked Frank to share insights on the topics dominating media headlines: housing challenges, affordability issues, construction challenges and effects of inflation.
THE URBAN DEVELOPER
As risk-averse banks pull back from lending, a significant opportunity is rising for developers and investors.
Over the past four years since COVID, alternative investing has undergone a noteworthy expansion, particularly within private portfolios. This blog aims to delve into the democratisation of access for investors and the evolving role of alternative assets in diversified portfolios.
There are reasons to expect a better second half of 2024 for the economy: Income tax cuts will take effect from 1 July 2024, the prospect for interest rate cuts, rising real wages and a positive wealth effect for households from housing and the strength in the stock market.
As we approach the end of the interest rate rising cycle, we are seeing various indicators stabilise, including building materials, supplies, and stock. This is a positive sign that the market is adjusting, and we are closely monitoring these trends.
For Zagga, the year has begun, much like it ended, with a spate of activity. It was very pleasing, during the final quarter of 2023, to see several extended loans discharging, offering an opportunity for investors to re-cycle their money into fresher opportunities. We look forward to this trend continuing through 2024, as the industry implements solves for the various factors that caused these delays.
Cost pressures, labour costs and the interest rate hiking cycle have been headwinds to the sector in 2023. For 2024, with cost pressures easing and the labour market problems abating, the sector is poised for a stronger 2024 and 2025.
“It’s going to be a tough first half of 2024, I think, for the economy. But when we get to the second half, the tax cuts that we’re hearing so much about, will come through. If we get interest rate cuts and inflations under control, then the second half of 2024 will be a better year for the economy. And we could even have a pretty strong outlook for 2025.”
In today’s multifaceted investment landscape, sophisticated investors are seeking alternative investment opportunities which provide a more attractive return for risk proposition with lower volatility than what is currently available in the public markets.
2023 ended with a clear and marked slowdown… The key issues early in 2024 will be the extent of the fall in inflation – if it falls earlier and more aggressively than the RBA is currently forecasting, the start of the interest rate cutting cycle will be brought forward to the first half of the year.
At Zagga, we are pleased to have successfully navigated the turbulent waters of the past 12 months… We close 2023 with a sense that economic and market conditions overall will start to improve, with some sunlight now peeking through the clouds… We look forward to the continued support of all of our stakeholders as we sail into 2024. We are ready for whatever the conditions might be.
Zagga explains the mechanics of this alternative asset class, which can serve as a defensive investment option for income-focussed investors.
How reputable finance brokers select the right investment managers for their clients in times of uncertainty In the Commercial Real Estate Debt (CRED) sector, stakeholders
A new unitised fund – An alternative investment option for income focused investors that provides equity like-returns with debt security.
Why is there a market for private lending and non-bank lending in Australia? Who is it for and what are the risks of private and non-bank lending?
House prices continue to rise at a solid pace with the strong demand / weak supply dynamics still at play… but the largest cities continue to register large price increases. Since the low point early in 2023, house prices have risen 8 per cent to be at a new record high. Importantly, auction clearance rates have turned down from the mid 2023 peak, while at the same time new listings of properties for sale are rising as sellers take advantage of what are positive issues for them to list their property.
In the second part of this series ‘Demystifying Private Debt: Separating Fact from Fiction”, we aim to debunk common myths and provide clarity, drawing from our team’s combined experience in credit, property, private debt and investment management.
Following a spate of builders collapsing, it’s crucial for investors to seek experienced CRED investment managers to protect and grow their capital.
A guide to income investing: Understanding different investment options that generate passive income.
One of the key issues for the Australian economy in 2023 has been the strength in house prices… The end point… is that house prices are set to rise by 10 per cent in 2023, not fall 20 per cent, as the demand and supply dynamics underpin prices across all capital cities and in many regional areas. From an economic perspective, this is good news.
These events have had a significant impact on global financial markets which have reaction by pricing in a higher probability – but not a certainty – that official interest rates will need to rise further to squash any re-emerging inflation pressures while at the same time, expectations for interest rate cuts have been dramatically scaled back.
In this series ‘Demystifying Private Debt: Separating Fact from Fiction”, we aim to debunk common myths and provide clarity, drawing from our team’s combined experience in credit, property, private debt and investment management.
The Capital Stack: A comprehensive guide for all Real Estate Investors. The importance of understanding both sides of the real estate coin.
As we look to build on the foundations established since 2017 and to grow our business, we remain committed, not only to sourcing top quality alternative investment options from our accredited borrower clients and trusted introducers, but also to innovate and diversify the manner in which these can be structured and delivered to best effect and to meet the expanding requirements of our broad investor base.
SELFMANAGEDSUPER
Boutique investment manager and non-bank lender Zagga has launched its initial unitised private debt fund aimed at providing investors with access to an asset class that can operate as a hedge against the rising interest rates currently pervading the Australian economy.
INVESTOR DAILY
Boutique investment manager and non-bank lender Zagga has announced the launch of its inaugural unitised private debt fund, the Zagga CRED Fund (ZCF). According to the firm, given the asset class’ ability to serve as a robust hedge against rising interest rates, the fund presents as a compelling alternative for advisers aiming to increase their clients’ allocation to private debt in the current inflationary climate.
Boutique investment manager and non-bank lender, Zagga, announces the launch of its inaugural unitised private debt fund, the Zagga CRED Fund (ZCF). The introduction of this unitised fund underscores the growing appetite among financial advisors and wholesale investors for fixed-income investment alternatives.
This STEPtember, the team at Zagga are proud to be joining a community of over 120,000 Australians moving together to drive meaningful change for people with cerebral palsy. Our aim is to move 10,000 steps – or its equivalent – per team member, per day for the full 30 days! It’ll be a worthwhile challenge knowing we’re fundraising to support people with cerebral palsy.
Commercial Real Estate Debt (CRED) plays a pivotal role in the world of real estate investment. It’s a financial instrument that allows investors to participate
The 1.2 million dwelling target would mean…. just under 20,000 private sector dwellings per month every month for five years on average… a major positive for the construction sector with an extended upswing.
Zagga’s general market overview provides insights into the Official Cash Rate, Inflation, Population & Employment, and Housing.
In the currently inflationary environment, individuals are rightfully seeking avenues that can offer stability in volatile markets, portfolio diversification and capital preservation opportunities as well as a hedge against rising interest rates and inflation.
Strong demand from rapid population growth in concert with limited supply because of relatively soft rates on new dwelling construction are seeing house prices continuing to rise. The price increases are across all capital cities and are extending to most regional centres.
In the currently inflationary environment, individuals are rightfully seeking avenues that can offer stability in volatile markets, portfolio diversification and capital preservation opportunities as well as a hedge against rising interest rates and inflation.
While there remains clear evidence of the economy slowing, Stephen Koukoulas, Zagga’s Economist ‘in residence’, also acknowledges the positive trends currently coming to light: “House prices are… stronger, being in the early stages of a cyclical upturn with a surge in demand for housing coming from sharply higher immigration and supply being constrained by low levels of new dwelling construction.”
The answer is YES. There are more ways to gain exposure to property than simply buying into it. Debt-based real estate investments have grown in popularity and availability in recent years due to a number of factors.
House prices are rising. This has a range of important implications particularly when it comes to the cost effectiveness of new construction and the medium term outlook for the dwelling sector. If what we are seeing on house prices is the early stages of a price uplift, even of moderate proportions, the incentives for builders moves in favour of new construction.
Introducing Stephen Koukoulas We are thrilled to announce that we have engaged Stephen Koukoulas, a renowned economist, past Chief Economist of Citibank and Senior Economic
With official interest rates nearing their peak, having been hiked 375 basis points since May 2022, the Australian economy is slowing.
The Zagga Investments Lending Trust rated 4-star, SUPERIOR rating for third year running.
Different businesses will have different environmental impacts, and there is no single approach to addressing these impacts that works for everyone.
Environmental, Social and Governance (ESG) considerations have become increasingly important in the investment industry over the past few years. To try and better understand the
Australia has lots to offer to CRED investors and Zagga has carved its niche amongst the Australian non-bank lenders and alternative asset managers.
While headlines may suggest the property market is falling, the bigger picture suggests that over time, the market is remarkably resilient.
ETHIUM WEALTH
Zagga CEO spoke with Michael Downing from Ethium Wealth and shared his thoughts on the macroeconomic environment
As part of our growth journey, and in adding to our pool of deep experience and multi-disciplinary knowledge, we are pleased to announce new appointments to the Zagga team.
We are pleased to announce that Nikki Kemp has been appointed independent Chair of the Zagga
ESG Advisory Committee.
FEAR AND GREED
Alan Greenstein talks to Sean Aylmer (Fear and Greed) about the wild ride for parts of the property market, and where he sees the opportunities for investors in the midst of a global inflation storm.
Sydney, 1 December, 2022 – Zagga, the boutique investment manager and non-bank lender, has surpassed the $1 billion originations milestone with record originations growth in
Prospective investors into this growing asset class often ask the question –
Why does a gap exist between bank and non-bank funding? If these loans are creditworthy, why would the banks not fund them?
NEST EGG
Marketplace lender, Zagga, recently partnered with UTS to design a machine learning algorithm that predicts investor behaviour to shorten the matching process. But what ramifications will artificial intelligence have on the investment sphere?
Nest Egg sat down with Zagga CEO, Alan Greenstein, to learn more about the project and AI in the world of investing.
MORTGAGE BUSINESS
“We’re very pleased to be embarking on the next phase of our growth journey with Crowd Bank, and continuing to support Australian businesses with flexible funding to help them realise their own growth objectives.”
Alan Greenstein, added that the alternative investment platform has been seeing particular growth from small businesses over 2020, as “more businesses turned to alternative finance due to banks effectively closing their doors to many of their existing clients, including small businesses”.
AUSTRALIAN FINTECH
Japanese crowdfunding platform Crowd Bank is venturing into the Australian small business lending market, tipping A$50 million into Zagga, a marketplace lender set up in 2016. Since its launch, Zagga has originated almost $400 million in loans across more than 100 transactions, the company said in a statement yesterday outlining the deal with Crowd Bank.
MPA
Japanese crowdfunding platform Crowd Bank is looking to break into the Australian market through a $50 million funding deal with alternative lending platform Zagga.
With private lenders predicted to provide more than $50 billion in commercial real estate lending by 2024, Zagga’s white paper uncovers the two key factors driving growth.
SELFMANAGEDSUPER
A major challenge for SMSF investors is their of lack understanding of alternative asset classes and products such as peer-to-peer lending, one lender has said.
SELFMANAGEDSUPER
A lack of diversification and limited exposure to debt-based products was constraining the portfolios of Australian SMSF trustees and a new approach to income investments was needed, according to marketplace lender Zagga.
FS SUPER
The Australian investment market of 2017 is evolving rapidly. Low interest rates and global monetary policy have pushed yields to record lows. Property prices have reached “bubbly” …
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.
