Zagga Sees High Demand From Asean For Aussie Private Real Estate Credit

Some 15% of the non-bank lender's funds under management is from Asean investors

- Angela Tan

Singapore and Asean investors keen to jump into Australia's housing market have typically favoured bricks-and-mortar investment properties — but private real estate credit funds are gaining traction as an alternative avenue.

Mr Alan Greenstein, chief executive officer of Australia's non-bank lender Zagga, told The Straits Times that strong demand for Australian private real estate credit is seen from institutional investors, family offices and wealth managers across South-east Asia.

Unlike investors in Japan or South Korea, those in Singapore and neighbouring countries are more familiar with Australia and have deep connections through education, family ties and business relationships, he said.

"We are expanding our footprint and making it easier to invest with us," he said.

About 15 per cent of Zagga's funds under management (FUM) is from Asean investors, while its two biggest investors in the region are based in Singapore and Japan.

Mr Greenstein hopes to double the Asean FUM in two years.

Zagga has appointed Ms Roushana Sjahsam as its senior board adviser for Asean — a newly created role — to double down on its expansion here and in the region.

Ms Sjahsam was previously managing director at financial services firm Cantor Fitzgerald Capital Markets in Hong Kong. She has also worked at Citibank and credit provider ADM Capital before.