Labassa Capital Credit Fund Update March 2024

The Fund returned 0.78% in March, equating to 12.53% annualised performance since inception, net of fees. As of 31 March, the LVR of the Fund was 65.33%.  The Fund has received full repayment of two loans in March and have maintained six investments in NSW and QLD, secured by senior mortgages.

March continued the fourteenth consecutive month of median home value growth, as CoreLogic’s national home value index (HVI) rose a further 0.6%. Over the 12 months to March, the top three performing capital cities were Perth, Brisbane and Adelaide, with median dwelling values rising 19.8%, 15.9% and 13.3% respectively. As of February, there was an increase in new housing loan commitments of 1.5% over the month prior, or 13.3% higher than that of February 2023. The continuous growth in property values is partially driven by Australia’s low housing supply and the increase in overseas migration, reaching 737,000 migrant arrivals in 2023, a 73% increase on the year prior. As for the debt markets, the RBA maintained the cash rate at 4.35% in March as inflation continues to remain above the 2-3% target range. 

Labassa Capital currently has several active deals with settlements due for the coming months. We are experiencing increased demand for project funding and are broadening our scope for deal assessment, including more consideration for equity investment. Labassa Capital’s project pipeline value during March was $1.2b, an increase of 8.6% on the month prior.

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