Labassa Capital Credit Fund Update July 2025

On a 12-month rolling basis, the Fund achieved an investor return of 10.29% p.a. net of fees as of July 2025. This month, the Fund received full principal and interest repayment of a residual stock loan secured by ready-to-build serviced residential lots in Northwest Sydney. The Fund has made a new investment in a residential land subdivision project in Brisbane that has already been fully pre-sold. As of July, the Fund’s current investment portfolio comprises mortgages secured by real assets located in the metro areas of Brisbane, Sydney and Melbourne. 

We are seeing positive market sentiment on both property and consumer spending following the third cash rate cut of the year in August, bringing the cash rate to 3.60%. According to PropTrack, record high home values (units and houses combined) were recorded in July, with property values now 4.9% higher than this time last year. All capital cities except Canberra recorded home price growth in the July month between 0.1% to 0.9%. Perth and Adelaide are now the third and fourth most expensive cities respectively, following Sydney and Brisbane. 

The July pipeline value was $1.1 billion across 52 projects at an average facility value of $21 million. The Fund is expected to receive further repayment from maturing loans in late August. The Labassa investment team is in the process of finalising two new senior facilities for redeployment of the anticipated funds from maturity. Labassa’s pipeline is strong with multiple quality loans targetting settlement between September to November 2025.

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