ASEAN investors are increasingly turning to Australian real estate private credit as a means of securing reliable income and diversification amidst global economic uncertainties. This trend is highlighted in a new whitepaper by Zagga, a specialist in real estate private credit investment. The research reveals that 49% of ASEAN investors intend to boost their exposure to private credit, a figure that is 10% higher than the global average.
Zagga’s CEO and Co-Founder, Alan Greenstein, emphasised Australia’s appeal due to its stable economy and robust property market fundamentals. “Australia is undoubtedly a very credible destination for capital, with ASEAN investors recognising the investment potential on their doorstep,” he stated. Traditionally, ASEAN investors have favoured the US and UK markets, but there is now a growing interest in diversifying into Australian private credit, particularly real estate, which offers a unique risk-return profile.
The Australian private credit market, valued at approximately US$235b, has seen a compound annual growth rate of 21% over the past decade. Despite global challenges, Australia benefits from long-term demographic and property market drivers, supporting the evolution of its private credit market.
To aid investors, Zagga has launched an educational whitepaper series, “Opportunity through Uncertainty,” which explores the risks and opportunities in global private credit and the importance of governance and risk management. With over 1,000 entities in its global investor base, Zagga continues to expand its presence in the ASEAN region, appointing Roushana Sjahsam as Senior Board Adviser.
As the search for stability intensifies, Zagga’s initiative aims to provide investors with the necessary insights to navigate the complexities of the Australian real estate private credit market.
