Labassa Capital Credit Fund Update August 2025

On a 12-month rolling basis, the Fund achieved an investor return of 10.23% p.a. net of fees as of August 2025. Within the month, the Fund received full repayment of a residual stock facility secured by a first mortgage over serviced residential land lots in Box Hill, NSW. All capitalised interest associated with this loan were paid at maturity, which has pushed the Fund’s August distribution higher than the prior month. The Fund maintained other on-going investments. 

Australia’s property market is rebounding, with prices expected to keep rising over the next year. Sydney and Melbourne are expected to lead the upswing, responding fastest to rate changes. Brisbane and Perth may see slower growth due to affordability pressures on the back of recent double-digit growth. Declining interest rates, tight housing supply and the Labour Govenment’s upcoming changes for first home buyers will assist with the growth. Unlike the rapid post-COVID surge, this cycle will be shaped by gradual momentum, affordability limits, and policy shifts.

Labassa Capital’s August pipeline value was $1.2 billion across 42 projects at an average facility value of $28 million. Several transactions will settle within the coming weeks for the Fund. Investor interest and borrowing demand are both trending upwards for the balance of this calendar year. 

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