JTC Corporation
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Renewal of Lease
 
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  • Guidelines
  • Step by step Guide
  • Terms and Conditions

Guidelines for Renewal of Lease

  • When to apply for lease renewal 

    Our Customer Engagement Officers will get in touch with you about 6 years before the expiry of your lease to discuss your business plans moving forward. If you intend to continue operations on site, you are encouraged to apply for lease renewal at least 3 years before the expiry of your lease. This will help you in the planning of your prospective investments and provide an adequate length of time to plan for relocation in the event you are not granted renewal.

  • Fixed Asset Investment (FAI)

    Fixed Asset Investment in new Plant and Machinery (P&M), Building and Civil Works (B&C) and Refurbishment are required when you renew your lease to ensure that your land will continue to be used productively. 

    A list of items that are considered as P&M and B&C are found in Annex 1 and Annex 3 of the Lease Renewal Handbook. . For buildings and structures that you intend to retain, it is necessary to carry out refurbishment works as specified by JTC. These could include upgrading of façade and minor repair, resurfacing of driveway and minor repairs, and erection of new fencing or gate.  

    To discourage lessees from declaring investment amounts that exceed their intended investments, the lease term shall be pro-rated in the event of a shortfall between what was declared and the actual total investments made at the expiry of the investment period.

  • Minimum Gross Plot Ratio (GPR)

    You are required to meet the minimum gross plot ratio for the proposed lease renewal to optimise your land use. One way to meet the minimum Gross Plot Ratio (GPR) is to reduce the land area of your site. You may consider applying for the various incentive schemes for land intensification, including:

    Land Intensification Allowance (LIA)  is
     administered by EDB. Applicants are required to meet the GPR benchmark and other qualifying criteria. For more details, please refer to EDB's circular and IRAS’ website.

    Land Productivity Grant (LPG) helps to defray consultancy fees and/or domestic or overseas relocation costs for companies restructuring their operations to achieve land intensification or savings of at least 0.1 hectare in Singapore, in addition to other qualifying criteria. For more details, please refer to http://www.spring.gov.sg/Enterprise/CDG/Pages/PI/Land-Productivity-Grant.aspx.
    .
  • Productivity and strength of business plan 

     You need to ensure that you have good productivity in your existing and future use of your land, floor space and labour. These criteria include the value added to the economy, creation of good jobs, linkages with other industries as well as the strength of the business plan. 

  • Proposed usage
  • Industrial Leases
    Your proposed usage must meet the Urban Redevelopment Authority's 60:40 space utilisation rule i.e. at least 60% of your total gross floor area is used for industrial activities. You must also comply 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).

    Warehousing leases

    At least 60% of your total gross floor area is used for warehousing activities i.e. for storage and distribution of goods. You must also comply 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).
  • Other considerations

    1.  Redevelopment Plans

    If your site is affected by redevelopment plans, you may not be able to renew your lease. Please contact your Customer Engagement Officer to discuss this matter before proceeding with your application.

    2.  Breach of Lease Covenant
    You should not be in breach of any term and condition in the lease. In the event you are in breach (examples include erecting unauthorised structures, illegal dormitories, unauthorised occupation and rental arrears), you are required to rectify these before you apply for lease renewal.

    3.  Subletting
    Your existing and proposed use should maximise the available floor space. If you are unable to do so, you may wish to consider consolidating your operations in a smaller floor space. 

    4.  Availability of Other Premises for Consolidation
    If you have other industrial premises, you are encouraged to explore consolidating your operations to maximise your land use. You may also return part of your land to JTC.

    Fulfilment of all the guidelines does not necessarily constitute consent from JTC for a lease renewal. In assessing your application, JTC is required to ensure that your premises will be put to the best possible use by renewing your lease and that you will be able to maximise your productivity in the extended lease term.
     

Step-by-Step Guide to Renewal of Lease

STEP 1

Obtain Lease Renewal Kit

You can download the application form and Lease Renewal Handbook here:

The relevant references mentioned in the application form may be downloaded here:

Alternatively, you may call us at 1800-568 7000 to request for an application kit to be mailed to you.

STEP 2

Use the Self Evaluation Checklist

Go through the Self-Evaluation Checklist. You are encouraged to consult your Service Officer on the lease renewal guidelines and discuss the details of your building plans and investment proposals before you submit your application.

STEP 3

Filling up application form

You must complete the application form and provide all the supporting documents/ information and plans to JTC before your application can be processed:

  • An updated company profile from ACRA
  • Certificate of Incorporation or Certificate of Registration from ACRA
  • NEA (CBPU) approval for Industrial Allocation
  • Full Business Plan with details of your company's products and services
  • Latest Annual Report or audited accounts
  • Process Flow Chart with Plant and Machinery details
  • Existing and proposed site layout plans, artist impression, perspective drawings of new buildings (if any).

The following application types will require additional forms/ documents to be submitted (please click on it to download the relevant forms):

  • If the potable water consumption for the proposed usage exceeds 500 cubic metres per month or if you are applying for NEWater/ Industrial water usage: PUB approval for potable/ non-potable water usage
  • For Trusts and Investment Fund lessees: A copy of the Business Trust Licence/ Capital Markets Services Licence issued by MAS
  • For Real Estate Developer Buyers: Track record of property-related development projects in the last 5 years
  • If proposed usage includes Warehousing: Completed LTA Land Use Proposal Form
  • If proposed usage includes storage of petroleum/ flammable material exceeding SCDF's stipulated exemption quantities: SCDF approval for storage of petroleum/ flammable material
  • Waterfront sites: Waterfront Land Lease Renewal Form
  • Jurong Island sites: Completed NACWC Form for companies/ industries involving chemicals

STEP 4

Receive acknowledgement of your application

You will be sent an acknowledgement letter once JTC receives your application.
Please call us at 1800-568 7000 if you have any questions or if you do not receive your acknowledgement letter.


Assessing your application

JTC will assess your proposed investments and business plans for the future lease term. Part of the assessment will include a visit to your premises to gain a better understanding of your company's operations and business plans.

Fees and Charges

Here are the fees and charges payable for renewal of JTC leases:  

  • A non-refundable administrative fee of $1070 (GST inclusive) will be charged at the point of submission of online applications. For applications submitted in hard copy, a non-refundable administrative fee of $1177 (GST inclusive) is payable via cash or cheque.

  •  Where there is a change/ extension of existing approved usage, an additional non-refundable administrative fee of $235.40 (GST inclusive) will be charged at the point of submission of online applications. For applications submitted in hard copy, a non-refundable administrative fee of $535 (GST inclusive) is payable via cash or cheque.

  • Other fees and charges include JTC survey fee, URA processing fee, Survey Department's fee, cost of preparing legal documents, and Goods and Services Tax (GST).

Please note that we only accept cheque for payment via mail.

Terms and Conditions

  • Revision of Rental

Your land rent will be revised to market rent prevailing at the start of the new lease term. To assist you in adjusting to the land rent, you will be given rental concessions in the initial years of the new lease term.

  • Building and Investment Period

Following JTC's approval of your lease renewal application, you will be granted three years from the date of our offer to carry out your proposed building extensions and to make the necessary Fixed Asset Investments.

Within six months following the expiry of the building and investment period, you are required to submit an audited statement of all your Fixed Asset Investments over the three-year period.

The audited statement will be used in confirming your lease entitlement. If there is a shortfall between your declared investments and your actual investments, the lease term offered to you will be prorated.

  • Pro-rating of Lease Term

The period of lease renewal offered is based on your proposed gross plot ratio and business plan. Therefore, you will be tied to your declared gross plot ratio and Fixed Asset Investments. If there is a shortfall in the investments and/or gross plot ratio, the lease term shall be prorated.

  • Assignment Prohibition Period (revised w.e.f. 15 November 2013)
    Industrial lessees are required to fulfil the declared investments and plot ratio (if any) as stated in the Offer Letter, as well as to occupy the leased premises for a minimum period (“Assignment Prohibition Period”) before they are eligible to sell the property in the open market.

    The assignment prohibition period is 5 years from fulfilment of investment criteria or 3 years from commencement of renewed term, whichever is later. There should also be remaining tenure of at least 5 years before the lessee is eligible to sell the property in the open market.
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Renewal of Lease

Renewal of lease refers to the granting of a new term to JTC's lessees, which commences after the expiry of the current lease term. We encourage you to contact our Customer Engagement Officer around 6 years before the expiry of your lease if you are interested in renewal of lease.

With effect from 15 November 2013, the assignment prohibition period has been revised to better respond to recent trends in the industrial land market.  Please refer to Terms and Conditions for more information. For enquiries, please contact your Customer Engagement Officer or our Contact Centre at 1800-5687000.

 

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 Lease Renewal Handbook​​​​

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Last updated: 21 July 2014