Zagga tops $100m in funding with corporate note

Binaya Dahal

Journalist

1 April 2026

Specialist real estate private credit manager Zagga has surpassed $100 million in investor funding after the firm added $25 million to its senior secured corporate note that closed on Monday.

The four-year note, arranged by fixed income specialist FIIG Securities, carries an annual target yield of 7.85%. It closely follows the initial issuance launched in December 2025, which attracted 30% more subscriptions than expected.

Zagga’s chief executive and co-founder, Alan Greenstein, said the support for this note suggests investors are attracted to steady, transparent, non-correlated returns underpinned by well secured real estate assets.

“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,” Greenstein said.

He said the capital raised from the latest issuance will follow Zagga’s investment strategy and fund the mid-market residential development projects along Australia’s eastern seaboard.

Analysts say rising rates in an inflationary environment are further fuelling demand, and the floating-rate structure of the investment ensures investors maintain their margin above the Reserve Bank of Australia (RBA) cash rate.

FIIG’s Head of Debt Capital Markets and Syndication, Daniel Jones, said this latest tap-issuance was in response to strong investor appetite for disciplined commercial real estate credit investment.

“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,” Jones said.

“This has driven rising demand for fixed income investments, which traditionally have offered investors a safe haven from more volatile asset classes.”

Jones further added senior credit, underpinned by quality, well-supported physical assets, is in high demand and can provide investor portfolios with an additional layer of protection.