Labassa Capital Credit Fund Update March 2025

On a 12 month rolling basis, the Fund achieved an investor return of 10.54% p.a. net of fees as of March 2025. Portfolio average loan to value ratio (LVR) was 69%. In the March month, the Fund received full repayments from two matured loans and partial repayment from one on-going loan. Principal and interest related to the matured loans have been processed as the March Investor Distribution. In addition, the Fund has made two new investments secured against completed residential land in Sydney and Melbourne. 

While the RBA held the official rate at 4.10% during the April meeting, it left the door open for future rate cuts. Property sector sentiment rose slightly, supported by the continued housing demand in capital cities and the anticipated rate reductions. National housing values rose 0.4% in March, with growth recorded in nearly every capital city. Sydney and Melbourne have reversed earlier declines, and the national median house value now exceeds $820,000. 

Labassa investment team continues to vet a large quantity of investment opportunities on a monthly basis.  We are tightening the deal selection criteria across the board and uphold credit quality on portfolio assets.  The March pipeline value was $1.3 billion, encompassing 39 projects with an average facility value of approximately $33.3 million each. The target portfolio assets are first mortgages predominately in capital cities across mid-size low medium density projects.

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