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Wanze Properties (Ireland) Ltd/Tenants of Greystones Shopping Centre [1993] IECA 266 (15th December, 1993)
Notification
No: CA/910/92E - Wanze Properties (Ireland) Limited/Tenants of Greystones
Shopping Centre
Decision
No: 266
Introduction
1. Notification
was made by Wanze Properties (Ireland) Limited on 30 September, l992 with a
request for a certificate under Section 4(4) of the Competition Act, l99l or,
in the event of a refusal by the Competition Authority to issue a certificate,
a licence under Section 4(2) in respect of a standard lease between Wanze
Properties (Ireland) Limited and the tenants of Greystones Shopping Centre.
The
Facts
(a) Subject
of the notification
2. The
notification concerns the leases relating to shop units in the Greystones
Shopping Centre, Greystones, Co. Wicklow between Wanze Properties (Ireland)
Limited as landlord and the tenants.
(b) The
parties involved
3. Wanze
Properties (Ireland) Limited as successor in title is the owner and landlord of
Greystones Shopping Centre. The tenants are engaged in various retail or
service activities at the centre.
(c) The
notified arrangements
4. The
standard shopping centre lease notified contains the following restricted user
clauses viz.
(a) Under
clause 3.2(3) the tenant covenants with the landlord "To keep the demised
premises for the purpose of
only
and not without the Landlord's consent in writing which shall not be
unreasonably withheld to use or permit or suffer the same or any part thereof
to be used for any other purpose."
(b) Under
clause 3.2(5) the tenant covenants with the landlord "Not to assign or underlet
the whole of the demised Unit except with the previous consent in writing of
the Landlord such consent not to be unreasonably withheld."
(c) Under
clause 3.2(6) the tenant covenants with the landlord "Not to sell nor permit or
suffer the sale of groceries, food or food products or other items sold in a
supermarket in an area exceeding three thousand square feet in any one unit
whether by itself or its successors in title any holding company, subsidiary
company or associate company or by any of its Tenants, sub-Tenants or occupants
in the centre or otherwise."
(d) Under
clause 3.2(7) the tenant covenants with the landlord "Not to assign transfer or
underlet or part with the possession or occupation of the demised premises
except by way or mortgage, by sub-demise or otherwise to a Bank or other
lending Institution by way of security for borrowing by the Tenants, or any
part thereof or suffer any person to occupy the demised premises or any part
thereof as a Licensee But So That Notwithstanding the foregoing the Landlord
shall not unreasonably withhold its consent..."
(e) Under
clause 14 of the Third Schedule the tenant covenants with the landlord "Not
without the prior written consent of the Landlord to use permit or suffer the
demised premises to be used in any way whatsoever for the sale or supply of
beer, wine, spirits, liquors or other intoxicating liquor whether the same are
sold or supplied for consumption on or off the demised premises.
In
addition, there are a number of other standard restrictive covenants and
obligations in the lease.
5. Wanze
Properties have supplied details of the permitted user under clause 3.2(3)
attaching to each lease under which the tenant is restricted to particular
specified retail or service activities.
Assessment
- The Applicability of Section 4(1)
6. The
Authority considers that Wanze Properties (Ireland) Limited and the tenants are
undertakings and that the notified leases are agreements between undertakings.
The agreements have effect within the State.
7. The
Authority considers that the notified agreements, and their restricted and
exclusive user clauses and the other standard restrictive clauses and
obligations, do not have the object or effect of preventing, restricting or
distorting competition in trade in any goods or services in the State or in any
part of the State, for the reasons given in the Notice of the Authority of 2
September, l993 in respect of shopping centre leases (Iris Oifigiuil of l0
September, l993, pp. 665-667). The Authority therefore considers that the
notified agreements between Wanze Properties (Ireland) Limited and its tenants
do not offend against Section 4(1) of the Competition Act, l99l.
The
Certificate
8. The
Competition Authority has issued the following certificate:
The
Competition Authority certifies that in its opinion, on the basis of the facts
in its possession, the agreements between Wanze Properties (Ireland) Limited
and its tenants in relation to the lease of premises at Greystones Shopping
Centre, Greystones, Co. Wicklow notified under Section 7 on 30 September l992
(notification no CA/910/92E), do not offend against Section 4(1) of the
Competition Act, l991.
For
the Competition Authority
Des
Wall
Member
15
December 1993
© 1993 Irish Competition Authority
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URL: http://www.bailii.org/ie/cases/IECompA/1993/266.html