Fountainhead Property Trust v FHP Managers (Pty) Ltd (61/LM/Sep10) [2010] ZACT 75 (3 November 2010)

Fountainhead Property Trust v FHP Managers (Pty) Ltd (61/LM/Sep10) [2010] ZACT 75 (3 November 2010)

The Tribunal found that although both parties are involved in the property market, Fountainhead does not currently own any A-grade office property in the Constantia Kloof Basin where the target property is situated. Therefore, there is no horizontal overlap between the activities of the merging parties in respect of rentable A-grade office space in the relevant geographical node. The transaction is unlikely to substantially lessen or prevent competition. Furthermore, no public interest issues arise from the proposed transaction. Accordingly, the Tribunal approved the transaction unconditionally.

Citation
[2010] ZACT 75
Parties
Applicant: Fountainhead Property Trust; Respondent: FHP Managers (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
3 November 2010
Case Number
61/LM/Sep10
Procedural Posture
Merger Application / Approval
Outcome
The proposed transaction is approved unconditionally.
Judges
Norman Manoim, Yasmin Carrim, Andreas Wessels
Legal Topics
Merger Control, Property Acquisition, Office Space Market
Competition Law Commercial and Corporate Land and Property Merger Control Property Acquisition Office Space Market

Case Brief

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Parties

Fountainhead Property Trust

Applicant

FHP Managers (Pty) Ltd

Respondent

Procedural Posture

Merger Application / Approval

Legal Issues

  1. 1 Whether the proposed acquisition of the Constantia Valley Sale Property by Fountainhead Property Trust from FHP Managers (Pty) Ltd is likely to substantially lessen or prevent competition in the relevant market.
  2. 2 Whether any public interest issues arise from the proposed transaction.

Ratio Decidendi

The Tribunal found that although both parties are involved in the property market, Fountainhead does not currently own any A-grade office property in the Constantia Kloof Basin where the target property is situated. Therefore, there is no horizontal overlap between the activities of the merging parties in respect of rentable A-grade office space in the relevant geographical node. The transaction is unlikely to substantially lessen or prevent competition. Furthermore, no public interest issues arise from the proposed transaction. Accordingly, the Tribunal approved the transaction unconditionally.

Court Disposition

The proposed transaction is approved unconditionally.

Orders

  • The merger between Fountainhead Property Trust and FHP Managers (Pty) Ltd in respect of the Constantia Valley Sale Property is approved without conditions.