- Step by step Guide
- Terms and Conditions
Guidelines for Renewal of Lease
- Remaining 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. Applying early for a lease renewal will help you plan your investments and provide sufficient time period to recover the costs of your capital expenditure.
- Redevelopment plans
If your site is affected by redevelopment plans, you might not be able to renew your lease. Please contact your Service Officer to discuss this matter before proceeding with your application.
- Minimum Gross Plot Ratio
You are required to meet the minimum gross plot ratio for the proposed lease renewal. As you are encouraged to optimise your land use, if your existing gross plot ratio is below the minimum required gross plot ratio, you would be required to intensify your land use by increasing the floor area. In addition, companies can consider applying for the Land Intensification Allowance (LIA) incentive if their Gross Plot Ratio (GPR) meets the GPR benchmark and other qualifying criteria. The incentive is administered by EDB. For more information on the qualifying criteria and application process of LIA, please refer to EDB's circular. For more information, on filing LIA claims in the income tax returns, please refer to IRAS’ website.
- Fixed Asset Investment
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 would continue to be used productively. Your proposed investment on P&M, B&C and refurbishment, including both new and existing investments (taken as the net book value at the application date) should be able to support your proposed business plan for the renewed term.
A list of items that are considered as P&M is found in Annex 1 of the Lease Renewal Handbook.
You will be required to illustrate how your proposed P&M investments can assist you in achieving your value add projections and also to provide information on the proposed and existing P&M (Please refer to Annex 2 of the Lease Renewal Handbook for an example of the required flowchart).
- Building and Civil Works and Refurbishment
In the event that your lease renewal application is approved, it will be subject to the approval of the building plans for your proposed site development.
Please note that your site development should be based on the 'Aesthetic Control Guidelines for Building & Civil Works' for prime or normal sites.
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.
- Proposed Usage
Your proposed usage 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) and is mainly for industrial activities; i.e. not for offices, showrooms, storage and warehousing that is unrelated to industrial use.
|Industrial activities include:
- research & development
|Non-industrial activities include: |
- commercial office usage
Your proposed usage is mainly for storage and distribution of goods as stated in the usage clause of the lease and not for the purpose of offices, showrooms, and storage and distribution of goods unrelated to the usage clause.
You must ensure that the type of goods stored in your warehouse are according to the usage clause in your lease regardless of whether the goods belong to you or your customers. If you intend to store any additional goods not stated in the usage clause, you must seek JTC's approval for the extension of use
- Land and Space Utilisation Rule
You are encouraged to make better use of your existing site(s) and factory space in the new lease term.
In the event that you are unable to maximise your land use, you are encouraged to return part of your land to JTC. As a guide, the portion of land to be returned should be regular in configuration, be capable of independent re-development and have a land area of at least 5,000 sq m.
Your proposed plans must also meet the Urban Redevelopment Authority's 60:40 space utilisation rule as follows:
At least 60% of your total gross floor area shall be used for industrial activities (manufacturing, assembly, research and development purposes, including ancillary storage and warehousing related to the industrial activity only).
The remaining 40% of your total gross floor area may be used as ancillary offices, showrooms, neutral areas or communal facilities and such other uses approved in writing by JTC and the relevant governmental and statutory authorities.
At least 60% of your total gross floor area shall be used for warehousing activities
The remaining 40% of your total gross floor area may be used as ancillary offices, showrooms, production, neutral areas or communal facilities and such other uses approved in writing by JTC and the relevant governmental and statutory authorities.
- Breach of lease covenant
You should not be in breach of any terms and conditions 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.
- Other Important Points
You need to ensure that you have good productivity in your existing and future use of your land, floor space and labour.
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.
Fulfilment of all the criteria does not necessarily constitute a consent from JTC for a lease renewal. In assessing your application, JTC is required to ensure that your premises would be put to the best possible use by renewing your lease and that you would be able to maximise your productivity in the extended lease term.
Step-by-Step Guide to Renewal of Lease
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.
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.
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
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
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.
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.