Daniel Jones

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.”

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Alan Greenstein

Specialist real estate private credit investment manager, Zagga, has secured $65 million through an oversubscribed corporate note arranged by fixed income specialist, FIIG Securities.

The four-year, senior secured note closed 30 per cent over its target figure of $50 million, offering investors access to a quality fixed income investment with a current yield of ~7.85% per annum (Bank Bill Swap Rate (BBSW) + 4.20%).

Commenting on the raise, FIIG Head of DebtCapital Markets and Syndication, Daniel Jones, said investors were attracted by the bond’s structural features, including Zagga’s well-credentialed management, real asset security, and transparency of the underlying portfolio.

“The oversubscription of this issuance evidences the strong investor appetite for disciplined commercial real estate credit investment,” Mr Jones said. “Given current volatility, there is strong investor demand for Australian fixed income, with the market experiencing increased activity and rapid growth. The overlay of real estate adds further attractive benefits, including physical security over quality, well-supported assets.

“As the sole lead arranger, FIIG originated and structured the deal, ensuring the offer met investor demand, while providing Zagga with flexible long-term capital that complements its other funding sources.”

Zagga and FIIG first partnered on a four-year, $30 million Senior Secured Note issue in November 2021, with a further $13 million tap-issue in March 2022. The $43 million issuance matured in November. Due to the success of the previous issuance, and anticipated interest from existing note holders and new investors, the decision was made to extend the partnership and expand the latest raise.

The funds will be managed by Zagga and allocated to mid-market residential development projects along Australia’s eastern seaboard, predominantly focused on Sydney, which is the deepest and most liquid market.

Commenting on the market opportunity, Zagga CEO and Co-Founder, Alan Greenstein, said the structural imbalances in the Australian property market present a compelling investment case.

Australian real estate has enjoyed 20 years of sustained growth. A nationwide housing shortage, pullback from traditional lenders due to capital and regulatory constraints, and a booming population further strengthen the sector’s momentum,” Mr Greenstein said.

“We have a strong project pipeline, which these funds will be allocated towards, such as the construction of boutique apartments in Mosman, a luxury residential development in Dee Why, and early-stage funding for developments in Marrickville and Manly.

“Each of these developments benefit from the significant tailwinds in Sydney’s property market, which is experiencing strong demand for housing but a significant lack of supply.

“In our view, there has never been a better time for experienced, specialist real estate private credit managers to access investment-grade transactions with strong sponsors and counterparties.”

Zagga surpasses $1 billion milestone

Australia’s private credit market is now valued at $224 billion, growing nine percent year-on-year. Commercial real estate lending makes up $92 billion of the market^[1] .

As demand for real estate private credit opportunities increases, Zagga has surpassed the significant milestone of $1 billion in funds under management (FUM).

With 50 percent year-on-year growth, the specialist manager sees significant opportunities ahead, targeting $5 billion in FUM by 2030.

“The real estate private credit market has changed significantly over the eight years since we started Zagga with 32 foundational investors whom we are proud to still have with us today,” Mr Greenstein said.

“As real estate private credit in Australia gains global recognition as an established and growing asset class, we are witnessing the asset class move from an ‘alternative’ to a core part of a welldiversified portfolio.”

Reflecting this evolution, Zagga now invests on behalf of over one thousand investment entities, comprising domestic and offshore sophisticated individuals, family offices, and institutional investors.

“Looking ahead, we expect to originate larger loan sizes as the dynamics of the real estate market change, and we are increasing funds under management to support these opportunities. But our strategy will not waiver from our conservative, transparent, investor-first approach – values upon which Zagga was founded and remain extremely relevant today.”

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Notes:
[1] Alvarez & Marsal, Australian Private Debt Market Review, November 2025

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Nikki Kemp

Specialist real estate private credit investment manager, Zagga, has reinforced its commitment to responsible investment by becoming a signatory to the UN-backed Principles of Responsible Investing (PRI).

The PRI is the world’s leading advocate for responsible investment. Joining its global network formalises Zagga’s commitment to embedding Environment, Social, and Governance (ESG) considerations across investment and operational decision-making and practices.

Nikki Kemp, Independent Chair of Zagga’s ESG Committee, Director of Singapore Green Finance Centre, and former World Economic Forum Executive, said this was an important milestone signalling Zagga’s determination to integrate ESG at every level.

“We’re pleased to be recognised as a PRI signatory,” Ms Kemp said. “This affirms Zagga’s commitment to responsible investment practices, and reflects its belief that responsible investment considerations are essential to managing risk and delivering sustainable returns for investors.

“Just as alternative assets have become more mainstream, ESG has moved from the periphery to the core of responsible investing. ESG is not just about doing good, it is proven to improve investment outcomes.”

PRI signatories commit to six core principles, incorporating sustainability-related factors into investment analysis and decision making through to disclosures and reporting.

David Atkin, CEO at PRI, welcomed Zagga’s decision, noting it reflects the growing number of investment managers aligning with global responsible investment standards.

”We are delighted to welcome Zagga on board as a signatory to the PRI. Incorporating sustainability-related factors into analysis allows investors to gain sight of additional credit risk throughout the deal cycle, allowing them to make better-informed decisions and enhance long-term value.

“Zagga’s commitment to responsible investment reflects a growing recognition of the importance of such analysis across all asset classes, and we look forward to working with them in the future.”

Growth with responsibility

Australia’s private credit market has experienced significant growth and is now valued at AUD $205 billion, with approximately 17 percent (~AUD $85 billion) allocated to commercial real estate loans^[1] .

Zagga is one of a growing number of private credit managers to formalise its commitment to responsible investing, helping to raise the standard across the sector and reflecting the rising demand from wholesale and institutional investors for greater ESG alignment across alternative asset classes.

Alan Greenstein, Zagga CEO and Co-Founder, said PRI signatory status underscores Zagga’s commitment to best practice.

“Private credit has become a core part of well-diversified portfolios as investors look to diversify risk away from public markets, bolster portfolio resilience, and secure stable, attractive income amidst increasing global volatility,” Mr Greenstein said.

“With growth comes responsibility. As an investor-first business, ESG is no longer a ‘nice to have’ but a must to ensure we deliver for the global investors who entrust us with their capital. We look forward to collaborating with other investment leaders, across asset classes and geographies, in the PRI community.”

Zagga established its independent ESG Advisory Committee in 2023, which is mandated to advise and oversee the integration of ESG considerations into Zagga’s investment and operational practices.

Since originating its first loan in 2017, Zagga has invested in excess of AUD $2.5 billion across more than 300 transactions in the Australian commercial real estate sector, returning over AUD $1.5 billion to its global investor base across more than 200 successful exits.

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Notes:
[1] Alvarez & Marsal Research Report, 2024

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Roushana Sjahsam

Specialist private credit investment manager, Zagga, has appointed Roushana Sjahsam as Senior Board Adviser, ASEAN, as it accelerates its regional expansion with the launch of a new real estate private credit fund tailored to meet growing demand among Southeast Asian investors.

Ms Sjahsam brings three decades of experience across debt and capital markets in Asia, working most recently as Managing Director at Cantor Fitzgerald Capital Markets in Hong Kong. Previously, she worked at both Citibank and leading Asia Pacific credit provider, ADM Capital, for over a decade.

In the newly created role, Ms Sjahsam is charged with raising awareness of Zagga and its specialised real estate private credit offer amongst institutional investors, family offices, and wealth managers across Southeast Asia.

“The opportunity is ripe for ASEAN investors wanting exposure to the Australian property market,” Ms Sjahsam said. “Private credit only makes this more compelling due to its defensive characteristics and stable, reliable income amongst heightened global volatility.

“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.

“I am excited to be at the helm as Zagga strengthens its ASEAN proposition. Our strategy is proven, with our largest institutional investors already based in Singapore and Japan. This next stage of growth will be driven by investor education alongside our proven specialist capabilities and access to quality investment opportunities.”

ASEAN capital currently 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.

“Zagga’s strong and growing presence in Asia is a key differentiator – we are on the ground in both markets and able to help offshore investors better understand and access Australian private credit opportunities,” Ms Sjahsam 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.”

Zagga unveils new fund dedicated to ASEAN investors

The appointment of Ms Sjahsam comes as Zagga launches a new Singapore Variable Capital Company (VCC) – the Zagga Real Estate Credit Fund (ZRECF).

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.

Zagga CEO, Alan Greenstein, said the Fund and appointment of Ms Sjahsam further evidence the firm’s commitment to supporting investors in Southeast Asia and continuing to grow its investor base.

“We see strong demand from investors across the region, but many still haven’t discovered the Zagga experience,” Mr Greenstein said. “We are expanding our footprint and making it easier to invest with us. To do this successfully we recognise the importance of having a senior team on the ground to help investors every step of the way. “We are thrilled to have someone of Roushana’s experience and network join our Singaporebased Board Adviser, Alok Kochhar, in growing our regional team and believe our specialised proposition, track record, and localised investment solution provide all the key ingredients to make Zagga a compelling choice for investors.”

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.

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