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Third-Party JTC Build and Lease Scheme


Statistics on Gross Allocation & Return by Product Segment (Prepared Industrial Land) (3Q 2017 - 3Q 2018)
Statistics on Gross Allocation & Return by Product Segment (Prepared Industrial Land) (3Q 2017 - 3Q 2018)
Statistics on Return of Ready-Built Facilities by Industry (3Q 2017 - 3Q 2018)
Statistics on Return of Ready-Built Facilities by Industry (3Q 2017 - 3Q 2018)

Statistics on Gross Allocation of Prepared Industrial Land by Industry (3Q 2017 - 3Q 2018)
Statistics on Gross Allocation of Prepared Industrial Land by Industry (3Q 2017 - 3Q 2018)
Statistics on Return of Prepared Industrial Land by Industry (3Q 2017 - 3Q 2018)
Statistics on Return of Prepared Industrial Land by Industry (3Q 2017 - 3Q 2018)

Third-Party JTC Build and Lease Scheme is to Facilitate Industrialists / Owners to Offload Assets to Lighten Balance Sheet for JTC Facility.
To facilitate private sector participation in the industrial market, JTC allows third-party facility providers to be their lessees if they engage in "Third-Party Build and Lease" (Third-Party B&L) or "JTC Sale and Leaseback" (S&LB) scheme.
  • The Third-Party JTC Build and Lease - B&L scheme enables key and strategic industrialists to appoint a qualifying third-party facility provider to undertake the development of a customised facility under JTC Design & Build according to the industrialist's specifications. In return, the industrialist undertakes to lease the facility from the third-party facility provider under a set of negotiated terms and conditions agreed between them. The Third-Party JTC Design & Build - B&L scheme provides companies with the option of operating in customised facilities without having to pay the development costs up front.
  • Under the S&LB scheme, the industrialist assigns the completed facility to the third party facility provider, who in turn leases back the facility to the industrialist for continual usage.
 
Allowable Third-Party Facility Providers for JTC Facility
JTC allows the following list of third-party facility providers to participate in Third-Party JTC Build & Lease and JTC Design & Build / JTC Sale and Leaseback for JTC Facility:
  • Trusts/ Investment Funds / JTC Reits that are holders of Business Trust Licence/ Capital Markets Services Licence issued by MAS (see MAS legislation guidelines);
  • Developers who 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 e.g. EDB and SPRING.
 
Assignment Prohibition Period for Third-Party Facility Providers for JTC Build and Lease Contracts / JTC Design & Build / JTC Sale and Leaseback for JTC Facility
(w.e.f. 15 November 2013)


Assignment Prohibition Period 
Third-party facility provider lessees in new third-party JTC build and lease contracts / JTC Design & Build During the investment period and 5 years thereafter

Third-party facility providers who have purchased JTC Design & Build facilities from the secondary market (i.e. new assignment contracts)
Leases with ≤ 30 Years Remaining - 5 years from the date of legal completion of the assignment

Leases with > 30 Years Remaining - 10 years from the date of legal completion of the assignment
All third-party facility provider lessees for JTC build and lease contracts / JTC Design and Build / JTC Sale and Leaseback  Leases with < 5 years remaining

Sublet Quantum for JTC Facility.
JTC allows third-party facility providers of new contracts involving  JTC Build & Lease and JTC Design & Build / JTC Leaseback: to sublet 100% of the total Gross Floor Area (GFA) subject to:
  • Minimum 50% within 5 years from obtaining the first TOP for the site, and minimum 70% thereafter, to be occupied by approved anchor tenant(s) at all times.
  • The approved anchor tenant of a Third-Party Facility Provider is defined as a company that satisfies JTC’s assessment of value-added, remuneration per worker and skilled worker profile, as well as the minimum GFA requirement.
  • The original anchor subtenant is required to occupy a minimum 50% of GFA within 5 years from the first TOP for the site and minimum 70% thereafter.
  • After the original anchor tenant has fulfilled the minimum occupation period, multiple anchor tenants are allowed to jointly fulfil the minimum 50% (or 70%) GFA requirement, and each is to occupy at least 1,000 sqm.
  • Remaining GFA can be sublet to other industrialists, subject to usage and compatibility.
 
Mode of Payment
With effect from 1 January 2013, the payment scheme for new assignment contracts involving third-party facility providers  JTC Build & Lease and JTC Design & Build / JTC Leaseback has been revised to upfront land premium.

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).

While every endeavour has been made to ensure that the information provided herein is correct, ALLIANCE FACILITIES MANAGEMENT PTE LTD disclaims liability for any damage or loss that may be caused as a result of any error or omission.