INVESTOR DAILY
Zagga has secured an additional $25 million for its senior secured corporate note, taking total capital raised for the offer to more than $100 million as investors sought defensive income strategies amid persistent market volatility.The specialist real estate private credit investment manager said the four-year tap issuance, arranged by FIIG Securities, settled on 30 March and targets a yield of 7.85 per cent per annum.
Stephen Koukoulas opens his March update following another interest rate increase from the Reserve Bank of Australia (RBA), with rates rising for the second consecutive month. The February and March hikes have now taken the Official Cash Rate (OCR) to 4.1%, with inflation firmly at the centre of the RBA’s decision‑making.
STOCKHEAD & THE AUSTRALIAN
Despite increased attention, real estate private credit currently accounts for less than 20 percent of Australia’s commercial real estate lending market*, compared to more established markets like the US, where it represents 50 per cent of funding.
Yet this story is changing, with Australia now attracting the attention of sophisticated global and domestic capital. Zagga has been a beneficiary of this conviction.
As momentum continues to build, it’s imperative that there is a focus on quality – of managers, projects, and counterparties – to protect investors capital and ensure the sustainability of Australia’s real estate private credit sector.
As the asset class continues to scale, discipline, transparency and consistency are increasingly central to long-term success. Drawing on insights shared by our CEO & Co-Founder, Alan Greenstein in a recent Ausbiz interview, this article explores how Australia’s real estate private credit market is evolving, and what this shift means for borrowers, investors and funders alike.
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.
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.
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.
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.
DEAL STREET ASIA
Australian specialist private credit investment manager Zagga has launched an new real estate private credit fund designed to meet growing demand from Southeast Asian investors, according to an announcement.
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.
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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
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.
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.
Media coverage featured reflects the independent opinions of the authors and does not necessarily represent the official views of Zagga.
