Notification No.  CA/334/92E ‑ Cranford Properties Limited/ The Governor and Company of the Bank of Ireland

Decision No: 195.

Introduction

1.	Notification was made by the Governor and Company of the Bank of Ireland (Bank of Ireland) 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 lease between Cranford Properties Ltd and the Bank of Ireland.

The Facts

(a)	Subject of the notification

2.	The notification concerns the lease of shop units, Nos.1/2  in the Rathfarnham Shopping Centre, Rathfarnham, Dublin 14 between Cranford Properties Ltd as Lessor and Bank of Ireland as lessee.

(b)	The parties involved

3.	The Bank of Ireland is the second largest commercial bank in Ireland with a network of 290 branches including the branch at Rathfarnham Shopping Centre. Cranford Properties Ltd is engaged in the letting of shop units at Rathfarnham Shopping Centre.

(c)	The notified arrangements

4.	The notified lease was made on 26 July, l99l for a term of 6 years from l June, l990.  The restricted user clauses in the lease are as follows:

	(a)	Under clause 3 (h) the lessee covenants with the lessor "to fit and equip the demised premises as a Bank."

	(b)	Under clause 3 (o) the lessee covenants with the lessor "Not to sub‑let nor to assign nor to part with the possession of the demised premises or any part thereof without first having the consent of the Lessor, which consent the Lessor shall not unreasonably withhold."

	(c)	Under clause 4 (f) the landlord covenants with the tenant "Not during the term granted to carry on or permit or suffer to be carried on by others in or upon any premises belonging to the Lessor situate within a radius of three‑quarters of a mile from the demised premises, or in any part thereof, the trade or business of banking or any branch of such business and if such premises of the Lessor, or any part thereof, shall at any time during the continuance of the term hereby granted be sold, conveyed, demised or otherwise disposed of by the Lessor, or become vested in any other person whomsoever, this covenant shall be operative and binding upon every such other person and shall be enforceable by the Lessee and its assigns against all persons hereinafter claiming any estate or interest in such premises or any part thereof."

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

Assessment ‑ The Applicability of Section 4(1)

5.	The Authority considers that the Bank of Ireland and Cranford Properties Ltd are undertakings and that the notified lease is an agreement between undertakings.  The agreement has effect within the State.

6.	The Authority considers that the notified agreement, and its restricted and exclusive user clauses and the other standard restrictive clauses and obligations, does 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, pp.665‑667).  The Authority therefore considers that the notified agreement between Cranford Properties Ltd and the Bank of Ireland does not offend against Section 4(1) of the Competition Act, l99l.

The Certificate

7.	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 agreement between Cranford Properties Limited and The Governor and Company of the Bank of Ireland in relation to the lease of the premises at Rathfarnham Shopping Centre, Rathfarnham, Dublin 14 notified under Section 7 on 30 September 1992 (notification no. CA/334/92E), does not offend against Section 4(1) of the Competition Act, l99l.

For the Competition Authority

Des Wall
Member
3 December 1993