Labassa Capital Credit Fund Update August 2024

The Fund returned 0.84% in August, equating to 10.91% p.a. 12 month rolling performance, net of fees. As of 31 August 2024, the LVR of the Fund was 64.2%. The Fund maintained its allocation to five facilities spread across New South Wales and Queensland. All of the loans in the Fund are capitalised. 

Australian real estate values are showing no signs of slowing as August marked the 19th consecutive month of value increases. The national median house value reached $867,000, while the median unit value rose to $660,000, showing steady growth across the board. Despite ongoing cost of living pressures, there is increasing optimism about the future. The Westpac-Melbourne Consumer Sentiment Index rose by 2.8% in August to 82.7, still within the 78-86 range that has prevailed for over two years. Notably, consumer confidence in personal finances has seen significant improvement, particularly among low-income earners and those over 65. The ‘family finances vs a year ago’ index experienced an increase of 11.7% in August, the largest monthly gain in nine years, excluding the COVID period. The combination of interest rate cuts, easing inflation, and increased household savings is expected to have a positive effect on Australian property values.

Labassa’s project pipeline in August 2024 was $1.19 billion, encompassing 40 projects with an average facility value of approximately $29.7 million each. 

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