Greystar and GIC to sell Birmingham PBSA sites over competition concerns

Greystar and GIC and have offered to sell Student Roost’s Birmingham sites after the Competition & Markets Authority said their takeover of the student accommodation company would hurt competition in the city. The CMA said last month the pair’s £3.3bn acquisition of Student Roost from Brookfield could lead to competition concerns in Birmingham, noting: “We are concerned this deal could result in students in Birmingham seeing higher prices or lower-quality services.” Student Roost is the UK’s third-largest student accommodation provider, with more than 23,000 beds. Its development pipeline comprises a further 3,000 beds in several university cities. The company has two sites in Birmingham: the Heights and the Old Fire Station. Greystar and GIC offered to sell either the Heights or both sites to assuage the CMA’s concerns. However, the watchdog said the sale of only one site “would not restore the pre-merger market structure, as the merged entity would retain the Old Fire Station in addition to the properties in which GIC and Greystar have existing interests”. It added that a sale of both sites “may be capable of amounting to a sufficiently clear-cut and effective resolution of the CMA’s competition concerns in that they would fully eliminate the increment in Birmingham brought about by the merger”. The CMA said: “The parties have provided evidence that there are multiple potential suitable purchasers, that several potential suitable purchasers have already expressed or confirmed their interest, and that multiple potential purchasers have experience acquiring and operating PBSA sites.”   To send feedback, e-mail akanksha.soni@eg.co.uk or tweet @AkankshaEG or @EGPropertyNews Image © Hollandse Hoogte/Shutterstock See which agents are doing the most deals in Birmingham >>