FIIG taps market for additional $25 million as investors strengthen defences
31 March 2026
Specialist real estate private credit investment manager, Zagga, has secured an additional $25 million for its senior secured corporate note as investors strengthen defences and prioritise income amidst persistent volatility.
Arranged by fixed income specialist, FIIG Securities, the tap issuance for the four-year note settled on 30 March and targets a yield of 7.85% per annum. It closely follows an initial issuance in December 2025, which was oversubscribed by 30 per cent.
The Zagga corporate note has now secured more than $100 million in investor capital as continuing market volatility and mounting global uncertainty drive demand for defensive portfolio allocations and stable, risk-adjusted income.
“Increased volatility in financial markets, and the onset of a rate-hiking environment, have investors increasingly looking to defensive asset allocations and, in particular, floating-rate note exposures with solid yields from well-known brands,” FIIG Head of Debt Capital Markets and Syndication, Daniel Jones, said.
“This has driven rising demand for fixed income investments, which traditionally have offered investors a safe haven from more volatile asset classes.
“The Zagga corporate note provides the additional benefit of uncorrelated, multi-layer diversification, with returns driven from private credit investments in Australian commercial real estate opportunities. Senior credit, underpinned by quality, well-supported physical assets, is in high demand and can provide investor portfolios with an additional layer of protection.”
FIIG has been partnering with Zagga since 2021 and has secured more than $130 million in funding across two corporate notes.
“This latest tap-issuance was in response to strong investor appetite for disciplined commercial real estate credit investment,” Mr Jones said.
“FIIG has been partnering with Zagga for many years, with our investors attracted by Zagga’s well-credentialed management, deep sector expertise, and the transparency of the underlying portfolio.”
Rising rates in an inflationary environment are further fuelling demand, with the floating rate nature of the investment ensuring investors maintain their margin above the RBA cash rate.
Commenting on the latest tap issue, Zagga CEO and Co-Founder, Alan Greenstein, said the capital will be allocated to mid-market residential development projects along Australia’s eastern seaboard in line with Zagga’s investment strategy.
“Current market dynamics have created the perfect storm for experienced, specialist real estate private credit managers as investors seek to protect and diversify portfolios, without sacrificing returns,” Mr Greenstein said.
“Quality, well-managed Australian real estate private credit investments can deliver this. The support of this note, and the recent tap issue, suggests investors are attracted to steady, transparent, non-correlated returns underpinned by well secured real estate assets.”
Since originating its first loan in 2017, Zagga has invested close to AUD $3 billion across more than 300 transactions in the Australian commercial real estate sector, returning in excess of $1.5 billion, via approximately 200 successful exits, to its global investor base. It is on track to achieve a milestone $5 billion funds under management by 2030, growing at 50 percent year-on-year.
