Landholder duty decision ignites concern for real estate funds

A recent Victorian Civil and Administrative Tribunal (VCAT) decision has ignited concern in the real estate and funds management industries with potential implications for certain types of capital raisings for land rich entities.

The Victorian Commissioner of State Revenue has successfully argued the acquisition of shares in a land rich company by separate investors should be aggregated because the acquisitions were part of 'substantially one arrangement'.

Here, associate Matt Dolan explains what you need to know now.

WHAT DO YOU NEED TO KNOW?

1. Landholder duty is imposed on a relevant acquisition of a significant interest in a landholding.
2. A recent decision has implications for certain types of capital raisings for land rich entities such as real estate funds.