A huge merger in the student accommodation market is one step closer after the Competition and Markets Authority, the UK's competition regulator, approved remedies suggested by GIC and Greystar for the acquisition of Student Roost.
In May, Singaporean sovereign wealth fund GIC and Greystar Real Estate Partners, the US rental housing giant, formed a joint venture to buy Student Roost, the UK’s third-largest purpose-built student accommodation provider, from one of Brookfield’s real estate private funds.
The deal, understood to be worth £3.3 billion, would see the joint venture take on Student Roost’s portfolio, which comprises more than 23,000 beds, as well as a secured development pipeline of around 3,000 beds in UK university cities.
But it was thrown into doubt after the CMA launched an inquiry into the merger in September, concluding two months later that it could result in “a substantial lessening of competition”.
The merger was set to be referred for a phase two investigation. However, the CMA has agreed to "remedies proposed by the parties", including the sale of two properties known as The Heights and The Old Fire Station, both in Birmingham.