Labassa Capital Credit Fund Update June 2026

The Fund delivered a 10.66% p.a. net return of fees on a 12-month rolling basis in April. The portfolio maintained an LVR at 51.80%. The Fund has made a full distribution of all interest for the month, with 100% of the loans being serviced.

The Fund received a full repayment of a residual stock facility secured by subdivided and serviced residential land lots. As a case study, Labassa was the financier for the full project life cycle, from land acquisition through civil works construction and the residual stock stage. The investment team worked closely with the project sponsors over several years to a successful conclusion.

Thoughts on the recent federal budget changes: Recent changes to the capital gains tax (CGT) discount for foreign residents and negative gearing settings are intended to redirect investment towards new housing supply and support development activity. This policy direction is particularly relevant given Australia's ongoing structural housing shortage, with dwelling supply continuing to lag population growth and housing demand. At the same time, exceptionally tight rental market conditions, characterised by low vacancy rates and strong tenant demand, continue to support residential property fundamentals. Together, these factors underpin the long-term outlook for residential development while enhancing the attractiveness of private credit strategies that provide funding for new housing delivery.

As we move into the second half of 2026, the Fund remains well-position with a conservative LVR, a robust pipeline of opportunities and a diversified portfolio of secured loans.

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