What are third-party facility providers?

A third-party facility provider is an entity that:

  • Builds and Leases (B&L) a facility to an industrialist; or
  • Buys a facility from an industrialist and leases it back to them

Third-party facility providers can be:

  • Real Estate Investment Trusts (REITs), investment fund or trust
    Has a Trust Business Licence or a Capital Markets Services Licence issued by the Monetary Authority of Singapore (MAS). See MAS guidelines.
  • Developers
    Has an established and credible track record in real estate development. This track record should take into account the last five years of a developer's business.
  • Industry association
    Supported by the Economic Development Board (EDB) or Enterprise Singapore (ESG).

 

Third-party facility provider schemes

Third-party Build and Lease (B&L) scheme

This scheme allows an industrialist to appoint a third-party facility provider to develop a facility that is customised to their specifications and needs.

Once the facility is completed, the industrialist will lease the facility from the third-party facility provider. The terms and conditions of the lease will be determined and agreed between both parties.

The industrialist will become the anchor tenant and must occupy at least 70%* of the Gross Floor Area (GFA) of the facility. The anchor tenant will also need to fulfill a minimum Termination Prohibition Period (TPP).

Sale and Leaseback (S&LB) scheme

Under this scheme, an industrialist can sell a completed facility to a third-party facility provider. The industrialist will subsequently lease it back from the third-party facility provider. The industrialist will become the anchor tenant and must occupy at least 70% of the Gross Floor Area (GFA) of the facility.

 

Subletting by third-party facility providers

If the original anchor tenant leaves, third-party facility providers can apply via the customer service portal to replace them with new anchor tenant(s).

The proposed new anchor tenant(s) must continue to occupy at least 70% of the GFA. If there is more than one anchor tenant, each one must occupy at least 1,000 sqm.

The proposed new anchor tenant(s) must also meet JTC's assessment criteria based on:

  • The productivity of the space being used
  • Creation of good quality jobs and value-add to the economy

During the subletting period, if the anchor tenant(s) wish to increase/decrease their GFA by more than 20% or change their usage, the third-party facility provider will need to re-apply to JTC for the anchor subletting.

The remaining 30% of the GFA can be sublet to other businesses. However, this is subject to JTC's assessment of usage compatibility, as well as payment of applicable subletting fees.

Further details on the subletting policy can be found here.