The Zagga Commercial Real Estate Debt (CRED) fund has been officially registered as a foreign investment trust with the Financial Services Agency (FSA) of Japan in response to the growing appetite for alternatives as a hedge against volatility of the market.
According to the non-bank lender, this “important milestone” will help a growing cohort of Japanese investors seeking exposure to Australian private real estate credit for its income-generating, diversification and defensive characteristics.
This will also complement the company’s current investment channels in Australia and Singapore.
“The registration of the Zagga CRED Fund as a foreign investment trust with the Japanese FSA is a logical extension of our desire to attract investors from outside Australia, and in particular from South Asia. Southeast,” said Alan Greenstein, CEO of the boutique investment manager and non-bank lender. .
“This transaction complements our Singapore sub-fund and extends our direct investment offering to a broader Japanese investor base seeking to access the same defensive and income-generating potential that has resonated so well with our Australian investors.”
The Zagga CRED Fund invests strategically in a curated portfolio of mortgage-backed and credit-approved loans in the commercial real estate sector.
Since its launch in August 2023, it has outperformed its net return target of the official cash rate plus 4% per annum for wholesale investors with a minimum investment of $50,000.
It is currently available on major platforms including Netwealth, Praemium, Dash, HUB24 and BT Panorama in Australia.
As of the end of August 2024, Zagga’s total creations stood at nearly $2 billion while maintaining an average investor return of over 8% per year since its inception in 2016.
It saw its highest funding inflows to date for the first quarter of the 2024-2025 financial year, as well as record originations, with a pipeline of some $400 million.
