Labassa Capital Credit Fund Update July 2024

The Fund returned 0.92% in July, equating to 11.10% p.a. 12 month rolling performance, net of fees. As of 31 July 2024, the LVR of the Fund was 64.39%. The Fund is invested in five facilities spread across New South Wales and Queensland. As of July, all of the loans in the Fund are capitalised. 

The cash rate was maintained at 4.35% in July’s RBA meeting, with mixed expectations for their next move. Commonwealth Bank, NAB and ANZ have cut rates on most of their term deposits by up to 50bp, indicating they are expecting the RBA to cut the cash rate in the near-future. Australian equities outperformed many of the major global markets in July, as the ASX200 rose by 4.2%. Similarly, Australian real estate performed strongly, with home values increasing by a further 0.5% in the month. July marked the 18th month of consecutive value increases as the housing supply falls short of the increasing demand. With potential cash rate cuts within the next 12 months and a widening housing supply-demand gap, Labassa continues to hold a positive outlook on Australian real estate values for the remainder of 2024. 

Labassa’s project pipeline in July 2024 was $1.13 billion, encompassing 41 projects with an average facility value of approximately $18.5 million each.  

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