Spain’s competition authority has launched a detailed review of Greystar’s proposed acquisition of a student residence near the Cartuja university campus in Seville, citing potential competition concerns in the local accommodation market.
The National Commission on Markets and Competition (CNMC) announced that it has initiated a Phase II investigation into the transaction through which Greystar seeks to acquire exclusive control of Life Stay Cartuja S.L. The deal was notified to the authority in December.
Greystar is an investment manager specialising in residential rental assets and has expanded its portfolio of student residences across Spain in recent years. Life Stay Cartuja owns a student accommodation property in Seville that is currently operated by Yugo Students Spain. Both companies are active in the market for purpose-built student accommodation (PBSA) in the city.
During its preliminary review, the CNMC identified overlaps between the parties in the area surrounding the Cartuja campus, where a significant portion of Seville’s student housing supply is concentrated. According to the authority, the initial analysis revealed “indications that the transaction could reinforce market concentration in the area near the Cartuja campus.”
The regulator said the transaction could potentially lead to negative effects for students seeking accommodation in the area, including the possibility of higher prices or a reduction in service quality.
Greystar proposed commitments during the first phase of the review in an attempt to address these concerns. However, the CNMC concluded that the remedies offered were insufficient to resolve the potential competition issues identified in the initial assessment.
The authority stressed that the opening of a Phase II investigation “does not prejudge the final outcome of the operation.” Following the in-depth review, the CNMC may approve the deal, impose conditions, accept commitments or prohibit the transaction.
