SA Corporate Real Estate Fund and Buffcol Portfolio (78/LM/Jul07) [2007] ZACT 70 (20 September 2007)

SA Corporate Real Estate Fund and Buffcol Portfolio (78/LM/Jul07) [2007] ZACT 70 (20 September 2007)

The Tribunal found that the proposed transaction resulted in an overlap in grade B and C office properties in Pinetown and Pietermaritzburg, as well as light industrial properties in Jet Park, Boksburg, Isando, and Springfield. However, post-merger, the combined entity would not have a market share exceeding 5% in any of the identified product markets. The Tribunal concluded that the transaction was unlikely to substantially prevent or lessen competition in any relevant market. Furthermore, there were no significant public interest issues identified. Accordingly, the Tribunal approved the transaction.

Citation
[2007] ZACT 70
Parties
Applicant: SA Corporate Real Estate Fund; Respondent: Buffcol Portfolio
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
20 September 2007
Case Number
78/LM/Jul07
Procedural Posture
Merger Control / Approval
Outcome
The merger is approved without conditions.
Judges
D Lewis, N Manoim, Y Carrim
Legal Topics
Merger Control, Office Property Market, Public Interest, Market Share Analysis
Competition Law Commercial and Corporate Land and Property Merger Control Office Property Market Public Interest Market Share Analysis

Case Brief

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Parties

SA Corporate Real Estate Fund

Applicant

Buffcol Portfolio

Respondent

Procedural Posture

Merger Control / Approval

Legal Issues

  1. 1 Whether the proposed acquisition would substantially prevent or lessen competition in the relevant property markets.
  2. 2 Whether there are any significant public interest concerns arising from the transaction.

Ratio Decidendi

The Tribunal found that the proposed transaction resulted in an overlap in grade B and C office properties in Pinetown and Pietermaritzburg, as well as light industrial properties in Jet Park, Boksburg, Isando, and Springfield. However, post-merger, the combined entity would not have a market share exceeding 5% in any of the identified product markets. The Tribunal concluded that the transaction was unlikely to substantially prevent or lessen competition in any relevant market. Furthermore, there were no significant public interest issues identified. Accordingly, the Tribunal approved the transaction.

Court Disposition

The merger is approved without conditions.

Orders

  • The acquisition by SA Corporate Real Estate Fund of the Buffcol Portfolio is approved.
  • No conditions are attached to the approval.