JTC Subletting Policy

Alliance Facilities Management Pte Ltd is a premier professional consultancy firm based in Singapore, offering a comprehensive suite of services to clients in the industrial property sector. Catering primarily to multinational corporations and small and medium-sized enterprises looking to expand their operations in Singapore, our team of experienced professionals is dedicated to guiding OUR CLIENTS through the complex process of navigating various industry property requirements, applications and business plan justifications to the authorities for approval. With our wide range of services, industry knowledge, and customer-centric approach, we are committed to providing an exceptional experience and delivering the best outcomes for our clients. Our company do not rent or sell resale property; your property agents are in a better position to advise on the availability of properties in the secondary markets. 

Answer: Subletting happens when the space in your premise is being used by another business/entity. The business will be known as your subtenant.

Do note that subletting requires our consent. Subletting without JTC's consent is a breach of the tenancy / lease agreement which we may exercise our contractual rights to terminate your tenancy / lease.

The following are exceptional arrangements where you need not apply for  JTC’s consent to subletting:

• (a) Co-location of customers of a lessee who is a third party logistics (3PL) provider or data centre provider, where a service agreement has been signed between the lessee (who is the service provider) and the co-locating customer. This recognises that the co-location space is required to be shared as part of the nature of the lessee’s business.

• (b) Co-location of resident subcontractors who support the lessee’s operations on- site exclusively (i.e. the use of premises is solely to support the lessee’s business). This recognises industrialists’ needs and the economic benefits which may be enjoyed through an insourcing business model.

Answer: 

• These changes will affect JTC’s customers that are subletting industrial space, following recent checks of unauthorised subletting. The intent of the revisions is to deter unauthorised subletting and ensure that JTC’s industrial land and spaces are used appropriately. With these revisions, lessees that obtain prior approval from JTC will pay lower subletting fees. 

• Going forward, all lessees are reminded to seek JTC’s prior approval for all sublet arrangements. Lessees are also required to provide accurate and up to date information prior to the commencement of any subletting and inform us of any changes to the subletting. If these requirements are not met prior to the commencement of the sublet, JTC reserves the right to: 

(a) Reject the sublet application; 

(b) Impose a higher sublet rate for the proposed subletting; or

(c) Terminate the lease/tenancy for unauthorised subletting.

Answer: Sublet fees for timely applications are concessionary subject to the contents of the sublet application being true and accurate.

For late applications (including both new and renewal applications) / false declarations, a higher sublet fee is payable for late applications and where your subletting is more extensive than what you have set out in the application or declaration. In addition, costs to verify information furnished by you will also be payable. Where subletting is not allowable, JTC may exercise its right to terminate the lease/tenancy.

• 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

Consequence for late applications/false declarations (Effective from 1 November 2021) - 50% of sublet rent

Please note that JTC may back collect any amount that JTC deem appropriate for unauthorised subletting (including 100% of the sublet rent or more) under JTC prevailing policy.

Answer: End-user Lessees (land or landed facilities)

• For related businesses whom we assess have synergies to co-locate with the end-user on site, there is no sublet quantum restriction and sublet term can be granted till the expiry of the current lease term

• For non-related companies, sublet quantum is capped at 30% of GFA, up to three years or your current lease expiry date, whichever is earlier.

Related businesses: A business in which you own more than 50% shareholding in or A business which owns more than 50% of your company’s shares

Where the lessee or tenant subcontracts or outsources his operations to another business and the outsourcing is carried out at the lessee's/tenant's premises, the arrangement will not be regarded as subletting if the subcontractor/outsourcing business uses the space solely to carry out the lessee's/tenant's job.

Answer: End-user Lessees (workshop and high- rise developments)/ Tenants

• Only allowed to sublet to related companies whom we assess have synergies to co-locate with the end-user on site. There is no sublet quantum restriction and sublet term can be granted till the expiry of the current lease term / current tenancy term.

• Subletting to non-related companies is not allowed.

Answer: Third-Party Facility Providers

• Must sublet at least 70% of GFA per allocation to anchor subtenant(s). Subletting to anchor subtenants can be granted till the expiry of the current lease term.

• Can sublet up to 30% of GFA to non-anchor subtenants with sublet term of up to three years for each non- anchor subtenant.

The sublet space must be occupied by an approved anchor subtenant(s) at all times. Multiple anchor subtenants are allowed to jointly fulfil the minimum 70% GFA requirement after the original anchor tenant left after fulfilling the Minimum Occupation Period.

An approved anchor subtenant is defined as a business that satisfies JTC’s assessment criteria in terms of:

• value-added per sqm of the land;

• remuneration per worker;

• skilled worker profile; and

• occupying a minimum GFA of at least 1,000 sqm.

Answer: Before applying, do ensure that you fulfill the following criteria:

• You have not breached your lease agreement

• You do not have any rental arrears

• JTC have not taken any legal action against you

• You do not have any record of unauthorised subletting

• Your subtenant’s usage complies with our lease or tenancy agreement, usage guidelines and other Government Agencies’ rules and regulations (e.g. URA’s 60:40 space usage regulation).

• You are not subletting for pure office use only (i.e. any office usage must support the manufacturing operations within the sublet space)

• You are not subletting open land

Answer: Log in to JTC’s Customer Service Portal (CSP) to submit your application.

You must submit:

• Floor plan indicating the area you intend to sublet, or if any alterations have been made to the floor plan. You may sketch on existing building plans to indicate the area you intend to sublet.

• Your subtenant’s most  updated business profile from Accounting and Corporate Regulatory Authority (ACRA) for related subletting

• Your subtenant’s Land Transport Authority’s (LTA) Land Use Proposal Form, if its usage includes warehousing

• Your subtenant’s approval for storage of petroleum and flammable material from Singapore Civil Defence Force (SCDF), if its usage involves such material and exceeds allowed quantities.

• Your subtenant’s National Authority Chemical Weapons Convention (NACWC) form, if its usage involves chemicals on Jurong Island sites.

JTC will inform you of the outcome of your application through CSP, SMS or email within 7 working days of your full submission of required information and documents. For cases that require further assessment, JTC will liaise with your company separately on the required processing time.

Answer: Log in to JTC’s Customer Service Portal (CSP) to submit your subletting renewal application. You can do so 3 months before your subletting term expires.

JTC will inform you of the outcome of your application through CSP, SMS or email within 7 working days of your full submission of required information and documents. For cases that require further assessment, JTC will liaise with your company separately on the required processing time.

Answer: Log in to JTC’s Customer Service Portal (CSP) to submit your subletting termination notification. 

Do note:

• You must indicate your desired effective termination date and you must also ensure that your subtenant can vacate your premises by the effective termination date. If your subtenant overstays, it will be considered as subletting without JTC’s consent, which is a breach of the tenancy/ lease agreement which JTC may exercise their contractual rights to terminate your tenancy / lease.

• JTC will use the later date of when JTC receive your notification or your desired effective termination date, as the effective termination date. You will be billed up to the month of the effective termination date.

• Statistics on Historical Data of JTC Industrial Land Sold from 2017 to 2024

• Statistics on Historical Data of JTC Industrial Land Sold from 2014 to 2016

• Statistics on JTC Prepared Industrial Land - Updated 4th Quarter 2023

• Statistics on JTC Ready-Built Facilities (Land Based) - Updated 4th Quarter 2023

• Statistics on JTC Industrial Property – Quarterly Market Report - 1st Quarter 2017 to 4th Quarter 2023

• Statistics on JTC Land Rent for JTC's Standard Factory and Purpose-built Factory - Updated 1st January 2024

• Historical Data of Industrial Properties Caveats Lodged from 2022 to 2024

• Historical Data of Industrial Properties Caveats Lodged from 2020 to 2021

• Historical Data of Industrial Properties Caveats Lodged from 2018 to 2019

• Historical Data of Industrial Properties Caveats Lodged from 2016 to 2017

• Historical Data of Industrial Properties Caveats Lodged from 2010 to 2015

• Historical Data of Industrial Properties Caveats Lodged from 2000 to 2009

Our key services include:

• JTC Assignment of Lease Application: We assist Clients in preparing successful proposals and business plans for obtaining approval for the JTC Lease Assignment or purchase of JTC property and industrial land.

• JTC Standard Factories Launch: We provide guidance on preparing successful proposals and business plans for obtaining approval for successfully purchasing directly from JTC for Standard Factories Launch and Tender Application.

• JTC New Industrial Land Application / Tender / Industrial Government Land Sales Programme (IGLS): Our team specializes in preparing, analyzing, and tendering for JTC Industrial Land.

• JTC Lease Renewal / Extension of Lease: We support clients in preparing successful proposals and business plans to obtain approval for applying for JTC Lease Renewal and Extension of the Lease.

• JTC Third-Party Build and Lease Scheme: We help clients successfully apply for JTC Third-Party Build and Lease Scheme.

• JTC Anchor Tenant Application: Our expertise enables clients to successfully apply for approval as JTC Anchor Tenant for industrial properties.

• JTC Concept and Price Tender: We guide clients in successfully applying for JTC factory under the Concept and Price Tender (CPT).

• Construction of JTC Factory / Industrial Developments Services: We provide consultation on Facilities Optimization and Construction of JTC factory.

• JTC Industrial Property – Market Research Reports: We offer up-to-date statistics on historical data of JTC industrial land sold, Prepared Industrial Land, Ready-Built Facilities (land-based), Quarterly Market Reports, JTC Land Rent for JTC's standard factory and purpose-built factory, and historical data of JTC properties caveats lodged from 2000 to 2024.

• Singapore Economic Outlook 2024: Quarterly Report on Singapore Economic Performance. Next Update 3rd week of May 2024.

• Note: All subletting applications are subject to JTC's consent.

• 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.