Notification No:  CA/1003/92E ‑ Wanze Properties (Ireland) Limited/Glenberg.

Decision No:  254

Introduction

1.	Notification was made by Glenberg on 30 September 1992 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 lease between Wanze Properties (Ireland) Limited and Glenberg.

The Facts

(a)	Subject of the notification

2.	The notification concerns the lease of units G13 and G14 in the Dundalk Shopping Centre, Hill St, Dundalk, Co. Louth between Wanze Properties (Ireland) Limited as landlord and Glenberg as tenant.

(b)	The parties involved

3.	Glenberg, an unlimited company,is the property holding company for the Peter Mark chain of Hairdressing Salons. Wanze Properties (Ireland) Limited as successor in title is the owner and landlord of Dundalk Shopping Centre.

(c)	The notified arrangements

4.	The notified lease relating to unit G.14 only was made on 27 January, l986 for a term of l0,000 years from l May l983.  The restricted user clauses in the lease are as follows:

(a)	Under clause l0 of Section III the tenant covenants "To use the demised premises for the purpose of Ladies and Gents Hairdressing and all ancillary salon activities thereto 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 l2 of Section III the tenant covenants with the landlord "Not to assign sub‑let part with or share possession of the demised premises or any part thereof without the prior consent in writing of the landlord (such consent not to be unreasonably withheld)..."

In addition there are a number of other standard restrictive covenants and obligations in the lease.

5.	Glenberg has indicated that the lease in relation to unit G13 is in identical terms.

6.	Under a separate agreement dated 24 November l976 the landlord covenanted with the 	tenant
	"1.	For so long as Peter Mark Ltd remains in occupation of and continues to carry on the business of hairdressing in Units G14 and l.9 of the Dundalk Shopping Centre; the Company UNDERTAKES AND AGREES that in respect of any first letting of any unit in the Dundalk Shopping Centre or in the event that any unit in the Centre is surrendered or for some other reason comes back into the possession of the Company ..... the Company will not let or relet any such unit to any person intending to carry on thereat the business of hairdressing in competition with Peter Mark Ltd

	 2.	The Company also UNDERTAKES AND AGREES that it will discourage any Tenant of any unit in the Shopping Centre from assigning his, her or its interest in any unit in the Shopping Centre to a person intending to use any such unit for the business of hairdressing and will upon any application for consent to change of user from an existing user to hairdressing by an such Tenant in the first instance refuse to grant such consent..."

Assessment ‑ The Applicability of Section 4(1)

7.	The Authority considers that Glenberg and Wanze Properties (Ireland) Limited are undertakings and that the notified leases are agreements between undertakings.  The agreements have effect within the State.

8.	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 1993 in respect of shopping centre leases (Iris Oifigiuil 10 September 1993).  The Authority therefore considers that the notified agreements between Wanze Properties (Ireland) Limited and Glenberg do not offend against Section 4(1) of the Competition Act, l99l.

The Certificate

9.	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 Glenberg in relation to the lease of premises at Dundalk Shopping Centre, Hill St, Dundalk, Co. Louth notified under Section 7 on 30 September 1992 (notification no. CA/1003/92E), do not offend against Section 4(1) of the Competition Act, l99l.

For the Competition Authority

Des Wall
Member 
15 December 1993