The Zagga CRED Fund
Another CREDible alternative for advisors
The Zagga CRED Fund (ZCF) is a wholesale fund that aims to provide investors with an attractive rate of return and
regular, risk-adjusted income by investing in a specifically curated portfolio of credit-vetted, mortgage-secured loans.
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 seeks to achieve its targeted return through a mix of high loan-to-value ratios and stretched senior loans within its loan investments. 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
• 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.
Established in
More than
originated
More than
transactions
Loss history of
for investors
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
+61 417 433 267
Erica Geddes
Senior Executive, Investments & Funding
egeddes@zagga.com.au
+61 437 333 378
Mark Finch
Executive, Investments & Funding
mark@zagga.com.au
+61 488 554 149
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.
Subscribe to our newsletter to learn more about Zagga
News & Insights
CEO’s Update: March 2024
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
Insights from PERE Asia Summit 2024
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
Housing challenges and solutions: A current outlook
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
CEO’s Update: Welcome to 2024
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
CEO’s Update: Wrapping up 2023
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
Navigating Commercial Real Estate Debt
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 grapple with myriad challenges. Addressing
Do you have questions about the Zagga CRED Fund?
Fill in your details to schedule a call back at a time that suits you.