Australian RE investment manager launches private credit fund

Alternative investment manager Zagga has launched a new real estate private credit fund, which will invest directly in prime commercial real estate along Australia’s east coast.

The Zagga Real Estate Credit Fund has been established to meet growing demand from ASEAN investors in Australian real estate private credit.

Alan Greenstein, chief executive of Zagga, recently reported seeing increased interest from both investors and borrowers in Australian private credit, which had led to an influx of managers.

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According to a recent report by Alvarez and Marshall, the private debt market in Australia reached approximately $205bn (£153.5bn) in 2024, with around 17 per cent ($85bn) allocated to commercial real estate loans.

“Increasing demand from both investors and borrowers is propelling Australia’s rise as a private credit hub,” Greenstein said in a LinkedIn post in March.

“As the industry adapts to new challenges and shifts, I believe we’re witnessing a transformative period that will shape the future of private credit in Australia.”

Read more: Private credit funds can capitalise on real estate market challenges

Following the launch of the new fund, Zagga has also announced the appointment of Roushana Sjahsam as senior board adviser for ASEAN. She will focus on driving the firm’s expansion in Southeast Asia and raising awareness of its specialised real estate private credit offering.

Read more: Australian private market surge predicted