What does this transaction mean for FLK shareholders?

Folkestone shareholders will receive $1.39 cash per share on or around 7 November. This comprises the Bidder Consideration of $1.354 in cash for each Folkestone share and a Special Dividend of $0.036, representing a ~25% premium to the 30-day volume weighted average price of Folkestone shares.

What does this transaction mean for FET shareholders?

Charter Hall Social Infrastructure Limited (formerly Folkestone Investment Management Limited), the responsible entity/manager of FET has been acquired by Charter Hall Group. The name of the responsible entity/manager has changed to Charter Hall Social Infrastructure Limited. The Fund is now known as the Charter Hall Education Trust (ASX:FET).

As part of the transaction, the Trust’s management team lead by Nick Anagnostou, have transferred across to Charter Hall.  Effectively the same team continue to manage the trust and its assets, as they have done successfully for many years, complimented by Charter Hall’s existing team.

Further, there is no change to unit trading criteria. You can trade units in the trust under the ASX code FET.

What does this transaction mean for private fund investors?

The trustee/manager formerly known as Folkestone Investment Management Limited, Folkestone Funds Management Limited, Folkestone Seniors Living Management Limited and Folkestone Maxim Asset Management Limited have been acquired by Charter Hall.

The management of unlisted property funds is a core competency of Charter Hall with over $3 billion of highly rated unlisted retail investor funds under management.

As part of the transaction, the funds management and property teams lead by Adrian Harrington and Ben Dodwell respectively, have transferred to Charter Hall. Effectively the same teams continue to manage the funds, ensuring minimal disruption to on-going operations.

The name of the trustee/manager and the name of the funds has changed, as shown in the table below.

Previous name

New name

Folkstone Education Trust (FET)

Charter Hall Education Trust (FET)

Folkestone CIB Fund

Charter Hall CIB Fund

Folkestone Maxim A-REIT Securities Fund

Charter Hall Maxim Property Securities Fund

Folkestone Maxim A-REIT Securities SMA

Charter Hall Maxim Property Securities SMA

Folkestone Real Estate Income Fund
at Sydney Olympic Park

Charter Hall Direct Sydney Olympic Park Fund

Folkestone Real Estate Income Fund
at Altona North

Charter Hall Direct Altona North Fund

Folkestone Plumpton Development Fund

Charter Hall Direct Plumpton Fund

Folkestone Truganina Development Fund

Charter Hall Direct Truganina Fund

Folkestone Wollert Development Fund

Charter Hall Direct Wollert Fund

Folkestone SOP Opportunity Fund

Charter Hall Direct SOP Opportunity Fund

Folkestone Green Square Hotel Fund

Charter Hall Direct Green Square Fund

Folkestone Sydney Airport Hotel Fund

Charter Hall Direct Sydney Airport Fund

Folkestone Seniors Living Fund No.1

Folkestone Seniors Living Fund No. 1
(Managed by Charter Hall Group)

Have any properties been sold?

Both FET’s portfolio of early learning centre properties and the private fund’s property(s) remain unchanged by the transaction.

Has Charter Hall purchased my units in FET or the private funds?

Charter Hall did not purchase units in the private funds. Charter Hall did acquire the 12.0% of FET’s units owned by Folkestone Limited, and this ensures a strong alignment of interest between Charter Hall and FET’s shareholders.

Will I have the same number of units?

There is no change in the number of units you own and no new units have been issued.

Is there a cost in changing the Trustee/Manager?

There is no change to the management fee formula for FET and no change to the management fee for the private funds.

Are there any tax consequences arising from this transaction?

There is no tax event for FET shareholders or private fund investors.

Do I need to do anything?

You do not need to do anything. You still own the same units in FET and/or the private funds and the trust/fund’s name change will automatically be reflected on your holdings.

Where do I go for further Information?

You are welcome to contact us on 03 9046 9946. You can access up-to-date as well as historical information on your investment via the website.

Fund’s: www.folkestone.com.au             FET: https://educationtrust.folkestone.com.au/

For questions regarding your unitholding, please continue to contact Boardroom. Your login details to their website remain the same.

Boardroom Pty Limited
T: 1300 032 756 or +61 2 8023 5418 (outside Australia).
E: charterhall@boardroomlimited.com.au
W: www.boardroomlimited.com.au