Labassa Capital Credit Fund Update April 2026

The Fund delivered a 10.46% p.a. net return of fees on a 12-month rolling basis in April. The portfolio LVR was maintained at 52.84%. The Fund has made a full distribution of all interest for the month, with 100% of the loans being serviced.

It has been an active month across the Fund’s portfolio. During the period, the Fund received full repayment of a land facility following a refinance, together with repayment of an investment facility upon successful completion of the underlying project. On the development side, the Fund completed a top-up to an existing portfolio land facility and settled four new investments.

Research and market outlook: Elevated interest rates and persistent inflation continue to pressure the property and construction sectors. Construction costs are forecast to increase by a further 3–5% through 2026, impacting project feasibility and developer margins, while higher borrowing costs are expected to limit residential price growth to 1–3% nationally. Ongoing supply constraints continue to support values across industrial and select land subdivision markets.

Labassa Investment Team is in the final due diligence stage for two master-planned community residential land subdivision projects in South Australia, with settlements scheduled for May and June. The projects are strategically located in key growth corridors of Adelaid city.

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