As the acquisition of all of the Folkestone Social Infrastructure Trust’s ARSN 094 614 874 (FST) units by Folkestone Investment Management Limited as responsible entity of the Folkestone Education Trust by way of a trust scheme of arrangement (Scheme) was approved at a meeting of FST unitholders held at 3:00pm on Friday 19 December 2014, Folkestone Real Estate Management Limited ACN 094 185 092 in its capacity as responsible entity of FST requested the ASX to suspend FST’s units from quotation from close of trade on 22 December 2014 and removed from the official ASX list on 6 January 2014.

Implementation of the Scheme occurred on 6 January 2015, as outlined in the Notice of Meeting and Explanatory Memorandum dated 24 November 2014.  FST has been removed from the official list of the ASX.

Tax considerations in relation to the merger with Folkestone Education Trust (FET)

As detailed in the Notice of Meeting and Explanatory Memorandum dated 24 November 2014, the merger scheme will have tax consequences for FST Unitholders.  General Australian tax implications of the scheme are detailed in Section 10 of the Notice of Meeting and Explanatory Memorandum.  However, you should obtain your own independent taxation adviser for your individual taxation implications as the tax consequences will depend on your individual tax and financial circumstances.

The following information has been provided to assist unitholders in determining the CGT consequences on disposal of FST units and the tax cost base for the new FET units

Market value of new FET units received by FST unitholders under the Scheme with FET – $1.99 per unit

Market value of FST units disposed of by FST unitholders $3.20 per unit.

A worked example has been prepared for the purpose of assisting FST unitholders with completing their 30 June 2015 income tax returns. Please see: Folkestone Social Infrastructure Worked Example.

Scrip for scrip roll-over relief

FREML has obtained a class ruling from the Australian Taxation Office (ATO) on behalf of Australian tax resident FST unitholders which confirms the availability of scrip for scrip roll-over relief.

A link to the class ruling is as follows:

For further information on FET please click here.

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