12 July
2012
Dear Securityholder
Implementation of capital reallocation
We refer to the Capital Reallocation Proposal approved by
securityholders of Charter Hall Group (CHC) at the 2011
Annual General Meeting held on 24 November 2011.
The Capital Reallocation Proposal was set out in the CHC
Notice of 2011 Annual General Meeting and Explanatory
Memorandum dated 25 October 2011 a copy of which is
available on the Charter Hall website at www.charterhall.com.au
within the website's Investor Centre section. The
capital reallocation aims to ensure a more appropriate
allocation of capital between Charter Hall Property Trust
(CHPT) and Charter Hall Limited (CHL) (which together trade
on the Australian Securities Exchange as Charter Hall
Group), which is more closely aligned with CHC's long
term growth strategy.
Under the capital reallocation proposal, CHPT made capital
payments of $200 million (equivalent to $0.67 per unit)
which were compulsorily applied as a capital contribution
for existing shares of CHL. Prior to implementing the
capital reallocation we remained satisfied that the
proposal was fair and reasonable to all CHPT unitholders as
a whole and does not materially prejudice CHPT's
ability to pay its creditors.
Importantly, CHC securityholders will not receive any cash
as part of the capital reallocation. You continue to hold
the same number of CHC securities and they are quoted on
the same basis as before the capital reallocation. In
addition, there is no change to the net tangible assets
(NTA) per CHC security as a result of the capital
reallocation.
The cost base of your units in CHPT will however, reduce by
the lesser of:
-
the capital payment by CHPT of approximately $0.67 cents
per unit; and
-
the existing cost base of your CHPT units (in these
circumstances, a capital gain may also arise equal to the
difference between the capital payment of approximately
$0.67 cents per unit and the existing cost base of your
CHPT units).
The cost base of your shares in CHL will be increased by a
corresponding amount of approximately
$0.67 cents per share.
Further information enabling you to adjust the cost bases
of your CHC securities will be included in your 2012 Annual
Tax Statement expected to be distributed to securityholders
in August 2012. The new NTA split for CHC securities will
also be included within the Investor Centre section of
Charter Hall's website at www.charterhall.com.au.
Should you have further questions on your tax position we
recommend you speak with your financial or tax advisor.
For any other matters discussed in this letter, please
contact our Investor Relations information line on 1300 365
585 or if calling from overseas +61 2 8908 4000.
Yours
sincerely
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