JTC Assignment of Lease: A Comprehensive Guide

Alliance Facilities Management Pte Ltd: Your Trusted Partner in Singapore’s Industrial Property Market

• Established in 2011, Alliance Facilities Management Pte Ltd has earned a solid reputation for guiding both multinational corporations and small-to-medium enterprises through Singapore’s complex industrial property market—especially when it comes to JTC-related services. From JTC Lease Assignments and Lease Renewals to Anchor Tenant Applications and Industrial Land Tenders, our team offers end-to-end support to help your business secure approvals under stringent JTC guidelines.

Over a Decade of Proven Results

• Backed by over 100 successful JTC submissions totalling more than SGD 1 billion in value, our track record speaks for itself. We focus on delivering real results. That’s why we charge fees only upon successful approval, reflecting our unwavering confidence and commitment to your success. Our experts meticulously craft comprehensive business plan justifications, present fixed asset investments and redevelopment plans, and demonstrate job creation potential—all to reinforce your project’s economic value and win regulatory approval.

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• Beyond specialized JTC services, Alliance Facilities Management Pte Ltd provides holistic facilities and construction management solutions. Whether we’re optimizing your current facilities or overseeing new developments, our attention to detail and proactive approach ensure efficient execution while upholding the highest standards of quality and compliance.

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• Our client-focused philosophy is at the heart of everything we do. We’re proud to serve a wide array of industries and business sizes, including listed equity firms (19%), MNCs (16%), and SMEs (65%). Our industry breakdown underscores our versatility:

Construction / Engineering: 23%

General Manufacturing: 13%

Food Production: 12%

Marine / Shipbuilding: 12%

Distribution / Warehousing: 11%

Chemical & Gas: 8%

Precision Engineering / Cleanroom: 6%

Logistics & Transportation: 6%

Waste Management / Automobile: 5%

Retail / Distribution: 4%

By aligning our expertise with the specific challenges of these industries, we deliver tailored solutions that drive efficiency, growth, and compliance.

Your Path to Success

At Alliance Facilities Management Pte Ltd, we believe that navigating Singapore’s industrial property market should be a strategic advantage, not a hurdle. Trust our decade of expertise, proven methodology, and results-driven fee structure to safeguard your interests, ensure a seamless approval process, and enhance your operational efficiency.

Contact Us today to discuss how we can support your business goals and help you thrive in Singapore’s industrial landscape.

Stay informed about the latest JTC Industrial Land Lease policy changes that aim to provide greater flexibility, certainty, and support for businesses. Below is a comprehensive overview of the enhancements and their implementation timelines.

1. Additional Three-Year Lease Tenure for New Greenfield Industrial Land Allocations

• Key Update: JTC will offer an additional three years of lease (with payable land rent/premium) for all new greenfield allocations requiring new building development. This ensures businesses can enjoy the full 20- or 30-year intended lease term.

• Why It Matters: Helps businesses cover building and development periods without sacrificing lease duration. Provides more predictability in operational and capital planning.

• Implementation Timeline: Immediate effect.

2. Introduction of the Flexible Lease Extension Initiative (FLEXI)

• Key Update: Eligible land lessees on 20-year JTC leases can extend their leases in up to two tranches of five years each. Businesses must demonstrate strong economic outcomes and commit to new plant and machinery investments to qualify.

• Why It Matters: Allows businesses to extend beyond the original 20-year term by up to an additional 10 years. Encourages sustained economic growth and investment within Singapore’s industrial landscape.

• Implementation Timeline: Targeted for 2H2025.

3. Earlier Lease Renewal Applications

• Key Update: JTC will bring forward the lease renewal application window from six years to ten years before the prevailing lease expiry.

• Why It Matters: Provides businesses with greater certainty about lease continuation well in advance. Facilitates long-term strategic planning, including expansion and technology upgrades.

• Implementation Timeline: Targeted for 2H2025.

4. Broader Recognition of Auditable Investments in Innovation and R&D

• Key Update: Beyond traditional Plant and Machinery (P&M) investments, JTC will recognize auditable investments in innovation, R&D, digital transformation, and Intellectual Property (IP) creation. This expanded definition aligns with evolving business models and supports value creation and productivity.

• Why It Matters: Encourages companies to invest in advanced technologies and IP, driving competitiveness and growth. Acknowledges modern forms of capital investments critical to innovation-driven enterprises.

• Implementation Timeline: Targeted for 2H2025.

Conclusion

These JTC Industrial Land Lease policy enhancements are designed to provide businesses with:

• Extended lease security for better long-term planning.

• Greater flexibility to adapt and grow.

• Incentives for innovation through recognition of diverse forms of investment.

For more information or to discuss how these changes can benefit your business, contact us or visit our website. Stay ahead with the latest updates and make the most of your industrial land lease tenure under JTC’s enhanced framework.

Thank you for your continued trust and partnership with Alliance Facilities Management Pte Ltd.

At Alliance Facilities Management Pte Ltd, we excel in providing JTC Assignment of Lease services, a critical solution for businesses navigating the intricate JTC property lease assignment landscape in Singapore. Our trusted partners, ranging from multinational corporations to small and medium-sized enterprises, depend on our expertise to facilitate their expansion efforts in Singapore by transferring the remaining lease period to prospective buyers.

We offer comprehensive guidance throughout the lease transfer application process. Our services include preparing and submitting the transferee’s business plan, providing advisory for industrial allocation from the National Environment Agency (NEA), assisting with the Land Use Proposal Form from the Land Transport Authority (LTA), and securing approval for storage of petroleum and flammable material from the Singapore Civil Defence Force (SCDF), if required. We ensure that all lease transfer applications meet JTC’s assessment criteria, including Fixed Assets Investments (FAI), job creation, and economic value-add.

Our client-centric payment structure requires no upfront payments, charging only upon approval. This approach underscores our confidence in our service delivery and aligns our success with our clients' achievements.

Answer: To ensure that the transferee puts the scarce land to productive use, application for the transfer of lease is subject to JTC’s assessment of the transferee’s business plan, which will be evaluated on the value-add to the Singapore economy and the creation of good jobs

As a professional consultant, Alliance Facilities Management Pte Ltd can guide clients through the process of purchasing JTC Property. We have an in-depth understanding of the JTC Lease Assignment, Conditions of Tender, and other necessary steps to help clients purchase a JTC factory. Our team is skilled at ensuring our clients understand and fulfil all the stipulated conditions for a successful application for your proposed assignment of a JTC Factory.

Answer: JTC Assignment or JTC Transfer of lease refers to the transfer of estates, rights, title and interests in the property from the "Assignor or Transferor" (seller) to the "Assignee or Transferee" (buyer). The policy ensures that industrialists who have leased industrial land based on their proposed business plans remain committed to them for a sustained and reasonable period of time while allowing lessees to exit on the grounds of genuine business needs.

Generally, this can be classified into the following categories:

• Outright sale of factory premises plus leasehold improvements to a prospective buyer

• Corporate restructuring and/or assignment or transfer of the lease of property to a related or joint-venture company where there is a shareholding relationship between the assignor or transferor company and the assignee or transferee company

• Inclusion or withdrawal of partners within a firm (Applicable for sole-proprietorship or partnership only)

• Conversion of legal entities from sole-proprietorship or partnership to a private limited company and vice-versa

• Taking over of business as an ongoing concern, this involves a transfer of the manufacturing facilities, plant and machinery, and staff. The buyer will assume all business interests formerly undertaken by the seller. There is essentially no change in the existing approved site activities.

• Sale and leaseback arrangement, where the industrialist assigns the property to a third-party facility provider and in turn rents it back again from the third-party facility provider for its continual usage. The intention is generally to facilitate off-balance financing.

Answer: Generally, you may assign your land lease, if:

• Your lease is not within the Assignment Prohibition Period - The Assignment Prohibition Period is the duration in which you are not allowed to re-assign your lease after the last assignment. The Assignment Prohibition Period is 5 years if your remaining lease is 30 years and less; or 10 years if your remaining lease is more than 30 years

• Your remaining lease term is more than 5 years

• You have made a written offer to JTC first if your Lease Agreement contains the Right of First Refusal clause

To ensure that the Assignee puts the scarce land resource to the most optimal and productive use, the application for assignment of lease is subject to an assessment of the Assignee’s business plan which will be evaluated based on the value-add to the economy and creation of good jobs. There may be other reasons when the assignment is disallowed. Please contact JTC for a pre-consultation.

Answer: To ensure that the transferee puts the scarce land to productive use, application for the transfer of lease is subject to JTC’s assessment of the transferee’s business plan, which will be evaluated on the value-add to the Singapore economy and the creation of good jobs.

Prospects who are interested in applying for a new JTC facility or existing customers who are keen to take up another JTC facility may wish to note that applications are assessed based on several criteria, including but not limited to the following:

• Value-Added - Value-added (VA) refers to the value “added” by a company to raw materials used during a production process. It is the difference between total output and the total operating cost incurred in the production of goods and services or ancillary activities, where total operating cost refers to the sum of total materials and operating cost. In addition, JTC will give due consideration to other factors, including but not limited to the credibility of the applicant's business proposal.

• Plant & Machinery - Plant & machinery (P&M), which refers to fixed assets as defined in a company's audited statement of accounts and used in the production of goods and services in connection with the company's business. Companies applying for JTC's land or space will have to declare their overall investment figures and provide justification for the declared figure.

• Building & Civil (B&C) - Building & Civil (B&C) works. A company is also required to meet the minimum B&C works guidelines. This comprises of a set of qualitative design guidelines and standards. Companies applying for JTC's land and facilities will have to provide a set of cost figures indicating the expected building standard.

Answer: The Industrial Allocation System (IAS) has been used for Industrial Siting Consultation (ISC) since 2007. However, the system has reached its end-of-life and will be replaced with the Environment Protection Management System (EPMS). With effect from 11 Mar 2024, ISC applications will be submitted  via the following website link: https://epms.nea.gov.sg/Account/Login?ReturnUrl=%2FIA  

For Frequently Asked Questions (FAQs) on Siting Consultation (ISC) & Environment Protection Management System (EPMS) Click Here.

Answer: An Environmental Site Assessment (ESA), previously known as JTC Environmental Baseline Study (EBS), is a requirement imposed on industrial land, prototype factory, and standard factory sites with activities sited within B1/B2 industrial land usage under the URA Masterplan. The ESA helps establish the baseline level of potential contaminants in the soil and groundwater beneath the site and assess the extent of contamination.

From 1st Feb 2024 onwards, to be consistent in terms of reference with other agencies, JTC Environmental Baseline Study (EBS) has been re-named to JTC Environmental Site Assessment (ESA).

Answer: An Environmental Site Assessment (ESA) will be imposed in the following scenarios:

• New allocation of lease, tenancy, or license with pollutive activities.

• Renewal of lease, tenancy, or license with pollutive activities.

• Change of use to pollutive activities.

• Assignment of lease or transfer of tenancy/license to incoming tenants with pollutive activities.

Answer: Your activity will be considered pollutive if the proposed main site usage belongs to any of the Singapore Standard Industrial Classification (SSIC) codes listed HERE.

JTC reserves the right to assess whether the activities are pollutive.

Answer: Following approval, businesses must rectify any breaches before the transfer can be legally completed. If the transferee’s business activities involve pollutive materials, an Environmental Baseline Study may need to be conducted. Furthermore, the transferee’s rent will be revised to the prevailing posted rate after the transfer of lease, unless the lease is being transferred due to corporate restructuring. If you are on a land premium payment scheme, an assignment levy may apply. From 01 Feb 2024 onwards, to be consistent in terms of reference with other agencies, JTC Environmental Baseline Study (EBS) has been re-named to JTC Environmental Site Assessment (ESA).

Answer: Yes, JTC lessees are required to inform the incoming lessee of the solar deployment that the outgoing lessee had undertaken. If there is no existing solar deployment, the incoming lessee will be required to undertake Mandatory Solar Deployment if the site has 800 sqm of available contiguous rooftop area and 15 years or more of the remaining lease term.

Answer: The information listed below will be used only as a reference. All applications are subject to final approval by JTC at JTC's discretion (including any terms and conditions that JTC may impose at its discretion with such final approval).

• Applicants are to submit a detailed business plan in support of the application submitted.

• JTC has not commenced any legal action against you.

• You currently do not have any outstanding rent or monies to be settled with JTC.

• You are not in breach of any term, condition or covenant of the tenancy or lease agreement.

• You are not carrying out any open land/ unauthorised subletting.

• You and the Assignee/ Transferee (Buyer) comply with other Government Agencies' rules and regulations (e.g. URA's 60:40 usage quantum).

• Your existing usage and the Buyer's proposed usage are Industrial or Warehousing.

• The Buyer's proposed usage complies 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 does not comprise dormitories.

• You have fulfilled the Plot Ratio (if any) and investment criteria stipulated in the Building Agreement, your remaining lease term is more than 5 years, and you are not within the Prohibition or Restriction Period.

Answer: The following application types will require additional forms/ documents to be submitted for further assessment:  

• Assignee's/ transferee's (Buyer's) updated company profile from ACRA 

• NEA’s (DCLD) advisory on Buyer’s usage for Industrial Allocation 

• For Land and Standard Factory customers: A copy of the Buyer's latest annual report or audited accounts and a full business plan with details of your Buyer's products/services to support the application 

• For Trusts and Investment Fund Buyers: A copy of the Trust Business Licence/ Capital Markets Services Licence issued by MAS 

• For Real Estate Developer Buyers: Buyer's 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 is needed for storage of petroleum/ flammable material 

• For Waterfront sites: Application form for use of waterfront site.

• For Jurong Island sites: Completed NACWC Form for companies/ industries involving chemicals

Answer: The proposed assignment/ transfer should be completed within 3 months from the date of JTC's consent if the Environmental Site Assessment (ESA) is not stipulated as a requirement in the consent. For cases where ESA is required prior to legal completion, the proposed assignment/ transfer should be completed within 3 months from the date of JTC's consent. Any extension of the completion date is subject to JTC's assessment and approval, at JTC's discretion.

Answer: Industrial lessees are required to fulfil the investment and plot ratio requirements (if any) stipulated in the Building Agreement/ Schedule of Building Terms/ Agreement for Lease, 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 minimum assignment prohibition periods are as follows:

New Lessees and Lessees with Approved Lease Renewals (lease tenures of up to 30 years)

• During the investment period and 5 years thereafter

• Lessees with Renewed Tenure - During the investment period and 5 years thereafter, or 3 years from the commencement of renewed term, whichever is later

Buyers who have purchased JTC facilities from the secondary market

• Leases with ≤ 30 Years Remaining - 5 years from the date of legal completion of an assignment

• Leases with > 30 Years Remaining - 10 years from the date of legal completion of an assignment

• All Lessees - Leases with < 5 years remaining

Answer: It is the lessee's responsibility to ensure that the Company does not breach any of the lease terms, covenants or conditions and observes and performs all his obligations. 

• The proposed Buyer is advised to check with the Seller whether there are any breaches and whether all breaches have been rectified. If, before or after completion of the assignment or lease transfer, JTC finds any breach that has not been rectified or discovers any breach, JTC reserves the right to require the lessee to rectify and remedy the breaches.

• Thus, JTC will look to the Seller to rectify if it is before the assignment/ transfer is completed. However, once the assignment or lease is completed, JTC will look to the assignee or transferee (Buyer) to remedy all breaches that have yet to be rectified or are discovered after the completion of the assignment/transfer.

Answer: 

From the Assignor/Transfer or (Seller):

• Letter of acceptance of the terms and conditions in the consent letter;

• Administrative fee(s)# for the assignment/ transfer of lease application and accompanying change/ extension of use (if applicable);

• Assignment of levy# (if applicable);

• Certified true copy of the resolution (not applicable to partnership or sole-proprietorship);

• Letter of undertaking from solicitor;

• Any outstanding Certificate of Statutory Completion (CSC) for existing buildings and structures (if applicable);

• Letter of confirmation pertaining to subletting (if applicable);

• All sums due to JTC are subject to prevailing GST.

From the Assignee/ Transferee (Buyer):

• Letter of acceptance of the terms and conditions in JTC's consent letter;

• Certified true copy of the resolution (not applicable to partnership or sole-proprietorship);

• Duly completed GIRO authorization form;

• Memorandum and Articles of Association (not applicable to partnership or sole-proprietorship);

• Certificate of incorporation or other document of registration issued by ACRA;

• Letter of undertaking from assignee/ transferee (applicable for inclusion or withdrawal of partners or conversion to Pte Ltd company);

• Signed Variation of Lease/ Supplementary Agreement together with payment of the fee for such document as set out in JTC's consent letter.

Answer: In land-scarce Singapore, constant rejuvenation of land use is essential to optimise land use. To facilitate overall land use planning and developmental needs, JTC will impose a ROFR clause for new contracts to allow JTC the right to buy back the property should the lessee intend to assign/sell the premises. With effect from 15 April 2010, the ROFR clause will be included in the lease for new allocation, lease renewal and lease assignment cases.

Answer: 

• The transfer of the Housing and Development Board's (HDB) industrial properties and land to JTC Corporation will take effect on 1st January 2018. The transfer was announced in October 2016, and the enabling Jurong Town Corporation (Amendment) Act 2017 was passed in Parliament in September.

• This will enable JTC to match companies' space needs better across different stages of growth with a larger supply of industrial land and space and allow the government to undertake more comprehensive master-planning of industrial estates.

• All 10,700 industrial units and 540 land leases under the HDB will be consolidated under JTC.

Answer: These questions and answers provide a clear understanding of JTC’s subletting policy and help clients navigate the application and compliance processes effectively. Visit Link HERE