SA Corporate Real Estate Fund v A portfolio of commercial property of Lushaka Investments (Pty) Ltd (017145) [2013] ZACT 102 (18 September 2013)

SA Corporate Real Estate Fund v A portfolio of commercial property of Lushaka Investments (Pty) Ltd (017145) [2013] ZACT 102 (18 September 2013)

The Tribunal found that the proposed acquisition would not result in a substantial prevention or lessening of competition in either the office or retail property markets. In the office space market, there was no overlap in premium grade office holdings, and even if the market definition were broadened to include Grade A office space, the merged entity's market share in the Sandton node would remain small. In the retail space market, the nature of the retail space at the World Trade Centre Johannesburg was significantly different from the applicant's existing retail property, and there were more than 50 shopping centres within a 5 km radius, indicating a competitive environment. The...

Citation
[2013] ZACT 102
Parties
Applicant: SA Corporate Real Estate Fund; Respondent: A portfolio of commercial property of Lushaka Investments (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
18 September 2013
Case Number
017145
Procedural Posture
Merger Review / Final Determination
Outcome
Merger approved unconditionally.
Judges
Andreas Wessels, Anton Roskam, Imraan Valodia
Legal Topics
Merger Control, Market Definition, Coordinated Effects, Public Interest, Information Exchange
Competition Law Commercial and Corporate Merger Control Market Definition Coordinated Effects Public Interest Information Exchange

Case Brief

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Parties

SA Corporate Real Estate Fund

Applicant

A portfolio of commercial property of Lushaka Investments (Pty) Ltd

Respondent

Procedural Posture

Merger Review / Final Determination

Legal Issues

  1. 1 Whether the proposed acquisition would substantially prevent or lessen competition in the affected office and retail property markets.
  2. 2 Whether the transaction raises any coordinated effects concerns due to board appointments and information exchange.
  3. 3 Whether the merger raises any public interest concerns, including employment impacts.

Ratio Decidendi

The Tribunal found that the proposed acquisition would not result in a substantial prevention or lessening of competition in either the office or retail property markets. In the office space market, there was no overlap in premium grade office holdings, and even if the market definition were broadened to include Grade A office space, the merged entity's market share in the Sandton node would remain small. In the retail space market, the nature of the retail space at the World Trade Centre Johannesburg was significantly different from the applicant's existing retail property, and there were more than 50 shopping centres within a 5 km radius, indicating a competitive environment. The...

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed merger is approved without conditions.