Housing Impact Fund South Africa v Stay at Southpoint Properties Proprietary Limited (LM148Oct15) [2015] ZACT 71 (7 December 2015)

Housing Impact Fund South Africa v Stay at Southpoint Properties Proprietary Limited (LM148Oct15) [2015] ZACT 71 (7 December 2015)

The Tribunal found that the proposed transaction would result in HIFSA acquiring joint control over SASP, but that there is no meaningful horizontal overlap in the student accommodation market, as HIFSA does not own any student accommodation. The only overlap identified was in the Grade C office property segment, but HIFSA's property is mothballed and not operational, and would only be redeveloped if a tenant is secured. The Tribunal was satisfied that office accommodation accounts for less than 10% of SASP's sales and that no tenant existed for HIFSA's property at the time of the hearing. The Tribunal concurred with the Commission's assessment that the transaction is unlikely to...

Citation
[2015] ZACT 71
Parties
Applicant: Housing Impact Fund South Africa; Respondent: Stay at Southpoint Properties Proprietary Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
7 December 2015
Case Number
LM148Oct15
Procedural Posture
Merger Approval / Final Determination
Outcome
The merger is approved unconditionally.
Judges
Yasmin Carrim, lmraan Valodia, Fiona Tregenna
Legal Topics
Merger Control, Joint Control, Student Accommodation Market, Office Property Overlap
Competition Law Commercial and Corporate Merger Control Joint Control Student Accommodation Market Office Property Overlap

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Parties

Housing Impact Fund South Africa

Applicant

Stay at Southpoint Properties Proprietary Limited

Respondent

Procedural Posture

Merger Approval / Final Determination

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction raises any public interest concerns, including adverse impact on employment.

Ratio Decidendi

The Tribunal found that the proposed transaction would result in HIFSA acquiring joint control over SASP, but that there is no meaningful horizontal overlap in the student accommodation market, as HIFSA does not own any student accommodation. The only overlap identified was in the Grade C office property segment, but HIFSA's property is mothballed and not operational, and would only be redeveloped if a tenant is secured. The Tribunal was satisfied that office accommodation accounts for less than 10% of SASP's sales and that no tenant existed for HIFSA's property at the time of the hearing. The Tribunal concurred with the Commission's assessment that the transaction is unlikely to...

Court Disposition

The merger is approved unconditionally.

Orders

  • The proposed transaction between Housing Impact Fund South Africa and Stay at Southpoint Properties Proprietary Limited is approved without conditions.