JTC Subletting Policy: A Comprehensive Guide

Answer: Subletting occurs when a lessee/tenant rents out part of its property to another tenant (subtenant). JTC's consent is required before subletting any property. Unauthorized subletting is a breach of the lease/tenancy agreement and can lead to termination.

Answer: JTC lessees can sublet their property, provided they meet specific conditions and obtain prior consent from JTC. Subletting is restricted to 30% of the Gross Floor Area (GFA) for non-related businesses. Subletting to related businesses is not restricted by the 30% GFA cap.

Answer: A "Related Business" is defined as a business where the lessee owns more than 50% of the business’s shareholding, or the business owns more than 50% of the lessee’s shareholding. Such subletting requires JTC’s prior consent and can be granted up to the current lease expiry date.

Answer: To apply for subletting, lessees must submit an application through JTC’s Customer Service Portal (CSP). The application should include a floor plan of the sublet area, the subtenant’s business profile, and relevant approvals depending on the subtenant’s activities.

Answer: Subletting to unrelated businesses incurs a sublet fee. For timely applications, the fee is calculated based on a percentage of JTC’s land rental rate. Late applications or false declarations result in higher fees. Subletting to related businesses does not incur a fee for timely applications, but a flat fee applies for late submissions.

Answer: Service providers such as logistics, food storage, or data center services are allowed if they have formal service agreements with customers and the space used on-site supports the lessee’s business. These arrangements do not require subletting approval from JTC.

Answer: Yes, resident subcontractors who support the lessee’s operations exclusively do not require subletting approval. Their use of the premises must solely support the lessee's business activities.

Answer: Lessees can sublet up to 30% of their GFA to non-related businesses. This is intended for short periods, and the maximum subletting period for such arrangements is three years.

Answer: 

• Sublet Type - Lessees on posted rate (within quantum)

Fee (per month) for timely applications - {30% x (JTC's land rental rate per annum) x (Sublet area/Total GFA) x (Land area)}/12

Consequence for late applications/false declarations (Effective from 1 November 2021) - {100% x (JTC's land rental rate per annum) x (Sublet area/Total GFA) x (Land area)}/12

• Sublet Type - Subletting to Related Entities / Anchor Subletting

Fee (per month) for timely applications - No fee payable

Answer: The subletting must be for industrial use. Any office usage within the sublet space must support the main manufacturing operations and cannot be standalone.

Answer: Unauthorized subletting is a breach of the lease/tenancy agreement. JTC may terminate the lease or impose higher subletting fees for late applications or false declarations. JTC reserves the right to back-collect up to 100% of the assessed sublet rent.