Labassa Capital Credit Fund Update January 2025

On a 12 month rolling basis, the Fund achieved an investor return of 10.66% p.a. net of fees as of January 2025. Currently all of the investments within the Fund are first mortgage facilities secured against real assets located in Sydney and Brisbane. The overall average portfolio loan to value ratio (LVR) is 65.06%.

February saw the first cash rate cut since November 2020, from 4.35% to 4.10%. The major banks have passed this rate cut in full and have forecasted the rate to drop to between 3.10% to 3.85% by December. The inflation rate dropped to 3.2% in the December 2024 quarter, marking the lowest it has been in three years. Through assets within Labassa’s portfolio, we are seeing that buyer sentiment has already increased since the February rate cut. 

The Government implemented a ban on foreign buyers purchasing established dwellings, effective April 2025. Labassa’s view is that the policy will have minimal impact on property prices. According to PEXA and data, 723,312 residential properties traded in calendar year 2024, of which 5,581 properties were associated with foreign ownership, accounting for 0.77% of total volume. 

In the month of January, the Fund received maturity repayment for two loans - a senior land facility and a land subdivision civil works facility. The Fund has distributed the interest earnings from both loans and reinvested the principal. 

Labassa’s project pipeline in January 2025 was $408 million, encompassing 31 projects with an average facility value of approximately $13 million each.

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