Labassa Capital Credit Fund Update June 2024

The Fund returned 0.88% in June, equating to 11.09% p.a. 12 month rolling performance, net of fees. As of 30 June 2024, the LVR of the Fund was 64.39%. The Fund maintained six investments from the month prior, located in New South Wales and Queensland. As of June, all of the loans in the Fund are capitalised. 

In closing of the 2023/2024 financial year, the Australian real estate market delivered strong performance, with dwelling values rising every month. The median national house value rose by 8.4% to $860,000, whilst the median unit value rose by 6.5% to $649,000. New housing loan commitments have also grown by 18% in the past 12 months. The persistent growth comes despite an array of downside risks including high interest rates, cost of living pressures, affordability challenges and tight credit policy. The housing market’s resilience is attributed to the present housing supply gap in meeting the demand of the increasing Australian population, which experienced a 2.5% growth in the financial year. 

Labassa Capital maintains a positive outlook on real estate values and market activity. Labassa’s project pipeline as of June 2024 is $1.29bn, encompassing 36 projects with an average value of approximately $35.8 million each.  

If you would like to receive a copy of the latest newsletter, please enter your details into the Insights form below.