The Zagga CRED Fund
Another CREDible alternative for advisors
The Zagga CRED Fund is our flagship unitised fund that aims to deliver investors with risk-adjusted returns and regular defensive interest income through investment exposure to a diversified portfolio of creditworthy commercial loan transactions secured by quality Australian real estate.
Fund Overview
For investors looking for an alternative to shares and traditional fixed income and property investments, the Zagga CRED Fund (ZCF) provides a CREDible avenue for portfolio diversification and regular, risk-adjusted income by investing in a specifically curated portfolio of credit-vetted, mortgage-secured loans.
The Fund invests predominantly in senior debt, diversified across a mix of geographic locations, sectors, and borrower profiles. By investing in the Fund, investors can access opportunities not readily available to private investors on a direct basis, while accessing the specialist knowledge and skills of the Investment Manager.
Fund Facts
Minimum investment1
$50,000 for the initial investment
Multiples of $10,000 for any additional investments
Investing
Units will be issued on a monthly basis
(unless the Trustee decides to value the Fund more frequently)
Target return
RBA Official Cash Rate + 4% p.a.
Issue price
$1.00
(for the first investment)
Income distribution
Monthly
Access to funds
Subject to the minimum lock-up period and maintaining a minimum remaining balance of $50,000, an investor may redeem part or all of their units only with the consent of the Trustee
Redemption price
Redemption Requests accepted by the Trustee will receive the Redemption Price calculated on the most recent Valuation Date occurring prior to the redemption of units
Valuation
The Fund will be valued on the last business day of each month
(or more frequently as the Trustee determines)
Management fee2
0.50% p.a. of the Gross Asset Value
(calculated and accrued monthly on the last business day of the month and paid to the Trustee monthly in arrears)
Suggested minimum investment time frame
Minimum lock-up period of 12 months from the date of investment
(which may be waived at the discretion of the Trustee)
Research rating
Four-star, SUPERIOR investment grade rating by SQM Research for the underlying Lending Trust
1. The Trustee may alter the minimum amounts specified at any time without prior notice to unitholders.
2. All numbers exclude GST unless otherwise noted and all dollar amounts are in AUD.
Access the key Zagga CRED Fund documents
Research Rating and Report
Zagga, a fully licensed boutique, non-bank lender and investment manager, has confirmed that independent research house, SQM Research (SQM) has awarded a 4-star ‘Superior’ (Investment Grade) rating for the Zagga Investments Lending Trust (ZILT), for the fourth year running.
The rating contained in this document is issued by SQM Research Pty Ltd ABN 93 122 592 036 AFSL 421913. SQM Research is an investment research firm that undertakes research on investment products exclusively for its wholesale clients, utilising a proprietary review and star rating system. The SQM Research star rating system is of a general nature and does not take into account the particular circumstances or needs of any specific person. The rating may be subject to change at any time. Only licensed financial advisers may use the SQM Research star rating system in determining whether an investment is appropriate to a person’s particular circumstances or needs. You should read the product disclosure statement and consult a licensed financial adviser before making an investment decision in relation to this investment product. SQM Research receives a fee from the Fund Manager for the research and rating of the managed investment scheme.
How to invest?
For advisers
- Find us on the following platforms
• BT Panorama | • HUB24 | • Netwealth | • Praemium
For investors
- Speak to your financial adviser or broker
ZCF will invest in property assets across residential, commercial and industrial sectors
Below is a high-level summary of the type of loan transactions in which ZCF may invest.
Bondi Beach, NSW
Real Estate Sector
Land Banking
Loan Purpose
Acquisition of an existing mixed-use site overlooking Bondi Beach (retail and residential) for highly-experienced counterparties as they run DA approval process for an improved mixed-use site
Facility Size
$11,200,000
LVR
70%
Term
6 to 12 months
Bowral, NSW
Real Estate Sector
Residential Development
Loan Purpose
Construction of seven over-60’s luxury standalone dwellings each consisting of three-bedrooms + study, 2.5 bathrooms and double garage
Facility Size
$9,800,000
LVR
59.92%
Term
13 months
Castle Hill, NSW
Real Estate Sector
Residential Development
Loan Purpose
Construction of 14 residential townhouses comprising of 2 and 3-bedrooms. Facility commenced with 6 sales representing 52% of net presale cover
Facility Size
$16,860,000
LVR
66.32%
Term
12 to 18 months
Collingwood, VIC
Real Estate Sector
Residual Stock – Commerical
Loan Purpose
To provide time for Borrower to finalise remaining lease agreements on favourable terms to facilitate a refinance to a long-term investment facility with their existing major Bank lender
Facility Size
$14,200,000
LVR
57.20%
Term
12 months
Little Bay, NSW
Real Estate Sector
Land Banking
Loan Purpose
Land acquisition while the Sponsors run DA process for development of site into 16 dwellings (8 detached villas and 8 duplexes). The site has direct frontage to the first hole of St Michael’s golf course and sweeping views of the Pacific Ocean
Facility Size
$11,050,000
LVR
65%
Term
12 months
Silverdale, NSW
Real Estate Sector
Commercial Development
Loan Purpose
Provision of funds for redevelopment of Silverdale shopping centre which contains Woolworths as an anchor tenant on a 10-year head lease with five x 8-year options. There are also a number of leases and Heads of Agreements (HOA) in place
Facility Size
$36,245,037
LVR
52.65%
Term
10 to 12 months
Note: These current loan transactions meet the Investment Criteria for ZCF, as detailed in the Information Memorandum. They may not represent the actual Underlying Loans.
With investors facing a storm of volatile pricing, and residential property yields compressed by high purchase prices, what alternatives are there?
Our newest white paper delves into the dynamics of the fast-growing private lending market, and what’s driving it.
Why Zagga?
We are an established Australian boutique CRED specialist and investment manager.
We have a proven track record and maintained strong momentum
and above-system growth since inception in 2017.
Founded in
More than
originated
More than
transactions
More than
successful exits
AFSL
ACL
licenses
SUPERIOR
Investment rating
More than
investors
Over
combined experience
Our Experience.
Your Investment.
Meet your Zagga representatives.
Matthew Harper
Senior Executive, Investment & Funding
matt@zagga.com.au
Erica Geddes
Senior Executive, Investments & Funding
egeddes@zagga.com.au
Incorporated in 2016, the Zagga team, consisting of close to 20 people, has over 200 years’ combined experience covering the areas of:
- Treasury and Finance Distribution
- Marketing and Business Development
- Credit and Operations
Our Management and Board comprises highly experienced individuals with extensive expertise across CRED.
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