Labassa Capital Credit Fund Update June 2025

On a 12-month rolling basis, the Fund achieved an investor return of 10.39% p.a. net of fees as of June 2025. On portfolio movements in June, the Fund has seen the maturity of a residual stock facility with principal and interest repaid in full. The Fund has reallocated the repaid capital and new investor subscriptions into a residential land subdivision project in Brisbane. 

The Fund’s portfolio facilities are all secured against residential and industrial real estate in capital cities. These sectors will continue to be the Fund’s primary asset types for the remainder of the year. 

The residential housing market has continued its steady growth, with June marking 5 consecutive months of growth since the correction at the beginning of 2025. The 12-month dwelling value growth to June 2025 was recorded at 3.4%, modest in comparison to the historic average of 5.5% seen over the last twenty years. Adelaide, Brisbane and Perth were the best performing capital cities, with dwelling values growing by 8%, 7% and 7%, respectively. The February and May 2025 interest rate cuts have helped to improve market sentiment, with the big 4 banks forecasting 2-3 more rate cuts in 2025. 

The Labassa investments team continues to filter a large number of transactions, identifying risk-adjusted investment opportunities for investors. The June pipeline value was $829 million across 22 projects at an average facility value of $37.7 million. Several transactions currently in the final stages of due diligence and legal documentation are earmarked as new investments for the Fund in the coming months. 

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