Labassa Capital Credit Fund Update February 2024

The Fund returned 0.82% in February, equating to 12.61% annualised performance since inception, net of fees. As of 29 February, the LVR of the Fund was 66.54%.

The CoreLogic Hedonic Home Value Index (HVI) continued its thirteenth consecutive month of value increases, rising by a further 0.6%. In February, the national median house value grew by 0.6% to $825,923, and the median unit value increased by 0.7% to $633,569. As of 29 February 2024, Perth, Brisbane and Adelaide experienced the largest annual growth, with median home values rising by 18.3%, 15.6% and 11.8% respectively. The RBA maintained the cash rate at 4.35%, supporting the progress of inflation to the 2-3% range. 

The Fund increased its allocation in two facilities, one of which is a residual stock loan for a high-end apartment development in Sydney‘s Lower North Shore. The other is a construction facility for a subdivision project in Box Hill, a growth suburb in Sydney’s northwest. The Fund maintained the four current investments from January. In the first two months of 2024, Labassa Capital has experienced increased demand for private credit funding and have continued to maintain our highly selective due-diligence process. Labassa Capital’s pipeline value during February was $1.14bn, an increase of 53.6% on the month prior.

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Sources: CoreLogic, RBA