Specialist Australian private credit investment manager, Zagga, has accelerated its regional expansion with the launch of a new real estate private credit fund tailored to meet growing demand among Southeast Asian investors.
The new Singapore Variable Capital Company (VCC) – the Zagga Real Estate Credit Fund (ZRECF) – has been established to support the growing appetite from ASEAN investors for Australian real estate private credit. The Fund will invest directly in quality prime commercial real estate across Australia’s East Coast – Australia’s deepest and most liquid markets.
Investors can also choose their preferred currency – AUD, SGD, HKD, USD – offering a more flexible and localised proposition.
CEO, Alan Greenstein, said Zagga’s strong and growing presence in Asia is a key differentiator.
“We are on the ground in market and able to help offshore investors better understand and access Australian private credit opportunities,” Mr Greenstein said.
“Investors in Southeast Asia have traditionally invested in US and European private credit markets, but Australia is quickly capturing attention. The expanding opportunities and maturing market offer an attractive risk-return premium that resonates with local investors.”
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The open-ended fund has an initial target of SGD $20M by end of September.
Today, ASEAN capital accounts for ~15 percent of Zagga’s funds under management, with a goal to double this over the next two years. In response to this bold growth ambition, Zagga has strengthened its regional headcount by 50 percent in the last 12-months.
“The opportunity is ripe for ASEAN investors wanting exposure to the Australian property market. Private credit makes this more compelling due to its defensive characteristics and stable, reliable income amongst heightened global volatility,” Mr Greenstein said.
“Asia-based investors are increasingly recognising this, attracted by Australia’s strong economic fundamentals, growth tailwinds in the property sector, and the uncorrelated diversification benefits private credit can offer.”
Since originating its first loan in 2017, Zagga has invested over $2.5 billion across more than 300 transactions in the Australian commercial real estate sector, spanning residential, commercial and industrial property assets. Its global investor base includes HNWIs, family offices, and institutional funders, from Japan, Singapore, China, Mauritius, Switzerland, USA, South Africa, and Australia.
