JTC Right of First Refusal (ROFR)
What is Right of First Refusal (ROFR)?
In land scarce Singapore, constant rejuvenation of land use is essential to enhance land use optimisation. To facilitate overall land use planning and developmental needs, JTC will impose 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, ROFR clause will be included in the lease for new allocation, lease renewal and lease assignment cases.
How does the ROFR work?
When a lessee (with the ROFR clause in the contract) wants to assign/sell the premises, he should notify JTC and make a written offer to JTC. The offer price should come with a valid valuation report. JTC will make an assessment and decide if JTC wants to exercise the right.
- If JTC exercises the right to buy the premises, JTC will negotiate with the lessee on a price that will be acceptable to both parties. JTC's buy-back price will be based on prevailing market value.
- If JTC does not exercise the right, the lessee can proceed to apply for assignment to other parties. However, the lessee is not allowed to sell the premises at less than the offer price to JTC within 3 months from the date JTC rejects exercising the right.
- If the assignment to other parties within the 3 months period is not successful, subsequent intention to assign/sell the premise will have to go through the process of notifying and making a written offer to JTC.
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.
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