19 Lyall StreetSouth Perth WA 6151

T 0993541917

F 089354,674

E yaran@yaran. comauWWW. yaran. Comau

5 September 2012

F!LIE NG

Doc

MARS/PRISM:

Australian Competition andConsumer CommissionGPO Box 3131CANBERRA ACT 2601

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Dear Sir/Madam

NOTIFICATION OF EXCLUSIVE DEALING - Smith 358 Ply Ltd (A. C. N. 125,75500)

Smith 358 Ply Ltd (Smith 358) is in the business of developing and selling land Smith 358 hasentered into a contract to purchase land at Lot 358 Smith St, Denmark, Western Australia andintends to subdivide the land into 40 green title lots which will be sold for residential usage.

As part of the house and land packages being offered to buyers of the 40 lots, the purchaser willacquire land by way of contract for sale from Smith 358 on the condition that the purchaser alsoenters into a contract for the supply of building services directly from a builder, to be nominated bySmith 358.

We therefore enclose Form G - Notification of Exclusive Dealing pursuant to the development at Lot358 Smith St, Denmark, Western Australia by Smith 358 Pty Ltd (Notice).

We confirm the correct legal entity giving the Notice is Smith 358 Pty Ltd (A. C. N. I 25,75500)as trustee for the Yaran Trust (97%), Faryar Gody at FG Trust (, %), Shahyar Abdollah Gody atf SGTrust (,%), Yaran Ply Ltd (A C. N. 07468622, ) at Vale Trust (A. B. N. 20 923,18532) (, %)

If you have any further queries regarding the Notice please do riot hesitate to contact our office on089354 1122.

YARAN

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Yours faithfully

Faryar GodyDirector

K:\T4 Operations\_U, I_Projects\Denmark Smith St 50\5. Development\4. Approvals\PM Working Folder\denmark_50 smith ACCC coverItr 0409/2. docm

AUST. Co ssioNCANBERRA

2 0 SEP 21/2

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Typewritten Text

N96160

SUBMISSIONS IN SUPPORT OF NOTIFICATION UNDER SECTION 93(, )OF THE TRADE PRACTICES ACT I974

I. Background

Smith 358 Pty Ltd (A. C. N. I 25,75500) (Bare Trust) - Yaran Pty Ltd(A. C. N. 074686221 ) at Yaran Trust (A. B. N. 52 058 I 02665) (97%)Faryar Gody atf FG Trust (, %) Shahyar Abdollah Gody atf SG Trust(I %) Yaran Ply Ltd (A. C. N. 07468622, ) at Vale Trust (A. B. N. 20 9231,8532) (,%) ('Smith 358')has purchased land at Lot 358 Smith St, Denmark, Western Australia.

Smith 358 is in the business of developing and selling house and landpackages.

The land currently comprises green titled Lot 358 Smith St, Denmark,Western Australia, which will be subdivided into 40 green title lots forresidential usage.

Smith 358 intends to develop and sell 40 lots to the public as houseand land packages.

Under the house and land package, potential purchasers will berequired to enter into the following contracts:

(I ) Contract for the sale of land from Smith 358; and

(2) Building contract with the Builder for the supply of buildingservices.

I. ,

I. 2

I. 3

I. 4

I. 5

The sale of the land by Smith 358 to the potential purchaser willbe conditional upon the purchaser entering into a contract withthe Builder for the supply of building services.

The subdivision of the land into 40 green title lots will be complete in20.3. Smith 358 proposes to make offers to the public as soon aspossible.

I. 6

The conduct described in this Form is exclusive within sections 47(6)and 47(7) of the Trade Practices Act I 974 (Cth). Smith 358 submitsthere is no likely detriment to the public resulting from that conduct.

2.1.2 In the alternative, Smith 358 submits the benefit to the public resultingfrom the conduct outiNeighs any detriment to the public.

The proposed conduct does not substantially lessen competition in therelevant market as the area represents a small proportion of residential

Public Benefit

2.2

K:\T4 0pemtions\ UI I ProjectsDenmark Smith SI 50\5. Development 4. Approvals\PM Working Folder\denmark 50smith ACCC application form 0509/2. docm

real estate available for development and sale in the Denmark area ofWestern Australia.

2.3 The tight design of the Lots necessitates that all lots are required to bebuilt by one builder concurrently. Please find attached plans andillustrations for the proposed development in Western Australia.

2.4 Common areas and common services need to be constructed before

the units can be occupied. Please find attached copies of the proposedplans. On site, it would be impractical to engage more than oneBuilder to effect construction of these plans.

2.5 Using one Builder to construct all homes on the lots described wimean purchasers have more certainty about:

(a) the quality of construction;

(b) the symmetry of the development;

(c) development in accordance with the design guidelines andplans; and

(d) timing of completion of the development.

As there is a single transfer of the land prior to the commencement ofthe building services by the Builder, purchasers will only be required topay stamp duty on the land value, representing a significant saving forthe purchasers and making the overall house and land package beingoffered by Smith 358 more affordable.

As Smith 358 does not have to carry the cost of constructing thebuildings, Smith 358 can sell its house and land packages at a pricelower than if Smith 358 had to fund the construction of all of the

buildings itself. As a consequence, the house and land packages willbe available to purchasers at more affordable prices.

Smith 358 will obtain tender quotations from pre-qualified builderssuitable for the development and the most efficient builder with the bestquality will be selected for the development.

The total house and land package prices that are paid by purchasersare based on sworn valuations of the completed houses. The totalprice paid for the house and land package by purchasers is thereforenot impacted by the particular builder selected nor influenced by thecost of construction as set by the builder.

2.6

2.7

2.8

2.9

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