COMPETITION TRIBUNAL OF SOUTH AFRICA
Case No: 78/LM/Jul07
In the matter between:
SA Corporate Real Estate Fund Acquiring Firm
And
The Buffcol Portfolio Target Firm
Panel : D Lewis (Presiding Member), N Manoim (Tribunal
Member) and Y Carrim (Tribunal Member)
Heard on : 5 September 2007
Order issued on : 5 September 2007
Reasons issued on : 20 September 2007
Reasons for Decision
Approval
1]On 5 September 2007 , the Tribunal approved the acquisition by SA
Corporate Estate Fund of 38 properties owned by The Buffcol Portfolio. The
reasons follow below.
The Transaction
2]This is a property transaction in terms of which SA Corporate Estate Fund
(“SA Corp”) intends to acquire all the properties within the Buffcol Portfolio.
The Buffcol Portfolio, comprising of the Buffet Properties and Collins
Properties, owns 38 properties in total which are located throughout South
Africa. Post the transaction SA Corp will own and control the Buffcol Portfolio.
3]SA Corp is listed on the JSE Limited and is not controlled by any single
shareholder. Its largest shareholders are:
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Public Investment Corporation 27.99%
Old Mutual Investment Group 19.50%
Whirlprops (Pty) Ltd 12.50%
Marriott Asset Management 8.54%
Rationale for the transaction
4]Buffcol wishes to realise its investment. The transaction will enhance the
critical mass and diversification of SA Corp’s portfolio.. The asset value of its
portfolio will increase to more than R7.8 billion from the current level of R6.8
billion.
The relevant market and the impact on competition
5]The proposed transaction results in an overlap in respect of grade B and C
office properties situated in Pinetown and Pietermaritzburg respectively and
in light industrial properties situated in the Jet Park, Boksburg, Isando and
Springfield nodes.
6]Post the transaction the merged entity will not have a market share of more
than 5% in any of the product markets identified above. In light of this we find
that the transaction is unlikely to substantially prevent or lessen competition
in any of the relevant markets.
CONCLUSION
7]There are no significant public interest issues and we accordingly approve
the transaction.
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__________________ 20 September 2007
Y Carrim Date
D Lewis and Manoim concurring
Tribunal Researcher: R Badenhorst
For the merging parties: Jowell Glyn & Marais Inc
For the Commission: M Matsimela and Makgale Mohlala
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