LLC has undertaken two capital reallocations, by way of a return of capital on each LLC share that is applied as additional capital on the stapled LLT unit.

Each capital reallocation results in a change in the CGT cost base of each LLC share and LLT unit held at that time, with the reduction in CGT cost base in the LLC share being equal to the increase in CGT cost base for the LLT unit.

Further details in relation to the capital reallocations are available in the Explanatory Statements dated 15 October 2012 and 15 October 2014.

The Australian Taxation Office has published Class Rulings in relation to each capital reallocation. Please refer to the following links for 2012 ATO Class Ruling and 2014 ATO Class Ruling.

If you received LLT units as part of the stapling transaction then the original CGT cost base in those LLT units was 0.1 cent each. Note, that there was no reduction in the CGT cost base in your LLC shares as part of the stapling proposal.

In relation to Lendlease Group stapled securities acquired for $7.70 per new security under the 5 for 22 renounceable entitled offer completed in March 2010, an amount of 0.1 cent was allocated to the LLT unit. Accordingly, the original CGT cost base in those LLT units was 0.1 cent each.

For Lendlease Group stapled securities acquired under the Distribution Reinvestment Plan in March 2011, September 2011, March 2012 or September 2012 the original CGT cost base in those LLT units issued was 0.1 cent each.

Where a Lendlease Group stapled security is disposed of on or after 26 November 2012 the impact of the first Capital Reallocation must be taken into account. If a Lendlease Group stapled security is disposed on or after 21 November 2014 the impact of both the first and second Capital Reallocation must be taken into account.

LLT units that you held at the time of the first Capital Reallocation on 26 November 2012 will have an increase in CGT cost base of 87.106880 cents per unit and LLT units that you held at the time of the second Capital Reallocation on 21 November 2014 will have an increase in CGT cost base of 69.099769 cents per unit.

For Lendlease Group stapled securities issued to you for $9.80 each under the Placement announced in April 2020 or the Securities Purchase Plan in May 2020 the issue price of $9.80 will need to be apportioned to determine your CGT cost base in the LLC share and LLT unit.   

The Australian Taxation Office has published a Class Ruling confirming the aggregate cost base of $9.80 for stapled securities  acquired  under the capital raising and accepting that a reasonable basis for apportioning the $9.80 as between the LLC share and the LLT unit results from using the relative Net Assets of the individual entities as at 30 June 2020. Please refer to the following links for CR 2020/48.

U.S. securityholders are advised to consult their own tax advisers with respect to the consequences of holding and disposing of Lendlease securities, particularly having regard to the U.S. passive foreign investment company (“PFIC”) rules.

U.S. “check-the-box” (“CTB”) tax election

During the 2016 calendar year, some entities Lendlease Trust has invested in made a U.S. check-the-box (“CTB”) tax election. There may be U.S. tax consequences for U.S. securityholders. U.S. securityholders should seek their own tax advice in respect of the impact of these elections.

If you have any enquiries, please contact Lendlease at [email protected].