Generally, this can be classified into the following categories:
- Outright sale of factory premises plus leasehold improvements to a prospective buyer
- Corporate restructuring and/or assignment or transfer of lease of property to a related or joint-venture company where there is shareholding relationship between the assignor or transferor company and the assignee or transferee company.
- Inclusion or withdrawal of partners within firm (Applicable for sole-proprietorship or partnership only)
- Conversion of legal entities from sole-proprietorship or partnership to private limited company and vice-versa
- Taking over of business as an ongoing concern, this involves a transfer of the manufacturing facilities, plant and machinery, and staff. The buyer will assume all business interests formerly undertaken by the seller. There is essentially no change in the existing approved site activities.
- Sale and leaseback arrangement, where the industrialist assigns the property to a third-party facility provider and in turn rents it back again from the third-party facility provider for its continual usage. The intention is generally for the industrialists to offload its assets and lightens its balance sheet.
The allowable third-party facility providers include Trusts/ Investment Funds that are holders of Business Trust Licence/ Capital Markets Services Licence issued by MAS, developers (i.e. those which have an established and credible track record of having been involved in the business of developing property-related projects in the last 5 years), and Industry Association/ Consortium sponsored vehicles that are supported by economic agencies (such as EDB and SPRING).
Obtaining CBPU and PUB Clearances
Please ensure that you have obtained clearances from Central Building Plan Unit (CBPU) and Public Utilities Board (PUB) for the Assignee's/ Transferee's (Buyer's) proposed usage, before submitting your application to JTC.
You may download the CBPU clearance form here and PUB clearance form here.
PUB's clearance is not required where:
- There is no change of use upon the assignment/ transfer of lease; and
- The potable water consumption of proposed usage is less than 500 cubic metres per month; and
- The Buyer is not applying for NEWater/ Industrial Water usage
Environmental Baseline Study (EBS)
The purpose of conducting an Environmental Baseline Study (EBS) is to establish the level of potential contaminants in soil and groundwater beneath a concerned site and to determine the extent of contamination of the site.
- Implementation Guidelines
If the assignor or transferor's (Seller's) usage or the proposed assignee's or transferee's (Buyer's) industry or activity falls within the following list, an Environmental Baseline Study (EBS) is required to be carried out as a condition to assign or transfer the lease:
- Oil installations and other premises storing, handling and using large quantities of oils and similar hydrocarbons products, including the following
- Oil refineries;
- Oil depots;
- Petrochemical complexes;
- Petrol stations and refueling depots;
- Aircraft manufacture and repair industries;
- Motor repair workshops.
- Chemical plants, chemical warehouses or terminals including the following
- Chemical warehouses or terminals;
- Pharmaceutical or biomedical plants;
- Pesticides formulation factories;
- Wood treatment and preservation facilities;
- Large electroplating works;
- Factories that use, manufacture or store toxic chemicals
- Shipyards and grit blasting works
- Gas works
- Power stations
- Toxic wastes treatment facilities
- Scrap yards
- Landfill site for municipal or industrial wastes
- Facilities for the treatment of sewage
This is in accordance with the Practice Circulars dated 6 August 2001 & 20 September 2002 issued by JTC to The Law Society of Singapore. For details, please click Practice Circular to view the circulars mentioned.
Guidelines for Assignment of Lease
- JTC has not commenced any legal action against you
- You currently do not have any outstanding rent or monies to be settled with JTC
- You are not in breach of any term, condition or covenant of the tenancy or lease agreement
- You are not carrying out any open land/ unauthorised subletting
- You and the Assignee/ Transferee (Buyer) comply with other Government Agencies' rules and regulations (e.g. URA's 60:40 usage quantum)
- Your existing usage and the Buyer's proposed usage is Industrial or Warehousing
- The Buyer's proposed usage complies with JTC's usage guidelines (i.e. usage should be compatible with JTC's usage zoning/ URA's land use zoning and does not fall within the Negative List or Further Assessment List etc) and does not comprise of dormitories.
- CBPU must have cleared the Buyer's proposed usage
- PUB must have cleared the Buyer's proposed water consumption if the Buyer is applying for NEWater/ Industrial Water usage or if the potable water consumption exceeds 500 cubic meters per month
- You have fulfilled the Plot Ratio (if any) and investment criteria stipulated in the Building Agreement, your remaining lease term is more than 3 years and you are not within the Prohibition or Restriction Period
- For info pertaining to third party facility providers, please click here.
The information listed above is to be used as a reference only. All applications are subject to final approval by JTC at JTC's discretion (including any terms and conditions that JTC may in its discretion impose with such final approval).
Notwithstanding any of the foregoing, JTC shall have the sole and exclusive right to receive, process and approve all applications according to such qualifying criteria as it deems fit and may at its discretion, reject any application or terminate your use of the website services as appropriate.
We retain the right, at our discretion, to modify, delete, edit or withdraw any part, component or all of the online request facilities at any time, or stop, restrict or suspend the same in relation to you or any other user(s) without being liable for any costs, expenses, losses and/or damages incurred by you or any other user(s) whatsoever.