Buying & Selling Stockland Stapled Securities
Acquisition of Stockland Stapled Securities
As a security holder in Stockland, you may have acquired your Stockland stapled securities in one of the following ways:
- Directly on Australian Stock Exchange Limited (ASX); or
- Participated in a Dividend Reinvestment Plan (DRP); or
- Participated in a scrip for scrip takeover; or
- Participated in the 1988 stapling of Stockland Trust and Stockland Corporation Limited.
Security holders who have acquired their Stockland stapled securities in one of the above ways and are contemplating selling their Stockland stapled securities will need to calculate the gain/loss on disposal for tax purposes.
If you have acquired your Stockland stapled securities in another way, you should seek your own professional tax advice.
To assist Stockland security holders in calculating such a gain/loss, the following information is provided:
Your Investment in Stockland Stapled Securities
As Stockland is a stapled vehicle, a share in Stockland Corporation Limited (‘SCL’) can only be dealt with on the same terms as a unit in Stockland Trust (‘the Trust’). For capital gains tax purposes, the cost of each Stockland stapled security and the consideration received on disposal of each Stockland stapled security will need to be apportioned between the share in SCL and the unit in the Trust.
The Australian Tax Office has advised that this apportionment should be done on a reasonable basis. For more information, refer to ‘Stapled securities and capital gains tax’ on the Australian Tax Office website. One possible method of apportionment is on the basis of the relative Net Assets of SCL and the Trust.
Apportioning the Value of your Stockland Stapled Securities using Net Assets
Security holders who have acquired their Stockland stapled securities directly (ie on the ASX or via the DRP) and not through a scrip for scrip takeover and propose to sell their Stockland stapled securities will need to apportion both the acquisition price and consideration received on disposal between the share in SCL and the unit in the Trust using the Net Assets of each individual entity, SCL and the Trust.
To assist security holders with this apportionment, below is the historical price of Stockland’s stapled securities as well as the Net Assets of SCL and the Trust.
ASX
The historical daily price of Stockland’s stapled securities covering the period 28 April 1987 to 31 December 2007 can be accessed below. For current information regarding Stockland’s share price, please refer to the ASX website.
The Net Assets for SCL and the Trust are below:
This table will be updated every six months following the release of the Stockland Group financial statements.
Historical Net Assets for SCL and the Trust
The historical Net Assets for SCL and the Trust for the years prior to 30 June 1996, can be accessed below.
Historical Net Assets for SCL and the Trust (PDF 12.0 KB)
The DRP
The historical Stockland DRP security issue price covering the period 31 August 1983 to 31 August 2007, can be accessed below.
Historical Stockland DRP Security Issue
Scrip for Scrip Takeovers
Stockland acquired the following Trusts by way of scrip for scrip takeover:
- Flinders Industrial Property Trust.
- Advance Property Fund.
- Australian Commercial Property Trust.
- AMP Diversified Property Fund.
If you were an original investor in any of these Trusts, and you participated in the scrip for scrip takeover by Stockland, you will need some additional information that will enable you to work out:
- The capital gain eligible for rollover relief that has arisen as a result of exchanging your original units in the Trusts for units in Stockland Trust.
- The capital gain not eligible for rollover relief that has arisen as a result of exchanging your original units in the Trusts for shares in SCL.
Below are extracts from the various Bidders Statements for each Trust, and where available, tax information published by the Australian Tax Office with respect to the scrip for scrip takeovers.
Flinders Industrial Property Trust
Advance Property Fund
Australian Commercial Property Trust
AMP Diversified Property Trust
1988 Stapling
On 11 February 1988 it was resolved that all unitholders of Stockland Trust receive an in specie distribution of shares in Stockland Corporation Limited. These shares were valued at 17.5 cents.
Consequently, unitholders in Stockland Trust also became shareholders in Stockland Corporation Limited. That is from this date, every transaction on the ASX is for an equal number of shares and units.
The Net Asset split as at 11 February 1988 was:
- Stockland Trust - 85%
- Stockland Corporation Limited - 15%
The following additional background information may be of assistance to you:
