Zagga originated more than $250 million in new transactions during the first quarter of FY26, with the Zagga Feeder Fund (ZFF) instrumental in seeding several of these. The majority of these transactions remain NSW-based, which we continue to view as the deepest and strongest performing commercial real estate debt market.
Institutional participation has increased, adding liquidity to the market. The phase-out of hybrids is also prompting a reallocation to private credit, contributing to this liquidity and, in turn, margin compression, particularly within Zagga’s market niches.
Despite this, our origination pipeline is at its strongest on record, supported by robust sourcing channels and deep borrower relationships. This positions the Funds well to achieve target returns. We’ve also seen an uptick in non-construction opportunities, including site acquisitions and residual stock facilities, as existing construction loans near completion. Strategically, we are maintaining a higher cash position to capture forward-looking opportunities.
We are also monitoring developments around ASIC’s proposed regulation of the private credit sector and, as always, will take all necessary steps to ensure compliance, as we have done since inception, once any changes are formalised.
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 its core. We thank our investors for their continued confidence and support.
