Industrial Land (IGLS) Tender Information

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.  

Answer: 

The Ministry of Trade and Industry (MTI) has launched its Industrial Government Land Sales (IGLS) programme for the first half of 2023 (1H 2023).

There will be four sites in the Confirmed List and three sites in the Reserve List, with a total site area of 7.16 ha.

Under the Reserve List, the Government will put up a site for tender if:

• (a) An interested party submits an application with an offer of a minimum purchase price that is acceptable to the Government; or

• (b) There is sufficient market interest in the form of more than one unrelated party submitting minimum purchase prices that are close to the Government’s Reserve Price for the site within a reasonable period.

• What is available for JTC Industrial Land Tender in 2024 under the Industrial Government Land Sales (IGLS)?

• 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 Industrial Property – Quarterly Market Report - 1st Quarter 2017 to 3rd Quarter 2023

Answer: 

• In January 2012, MTI introduced a set of minimum building specification requirements on IGLS land, to ensure that the developments built on the land are able to meet the needs of industrialists. Examples include the provision of a minimum number of goods lifts and loading bays.

• Starting from the 2H 2017 IGLS programme, these requirements will be waived for small IGLS plots. Small plots are typically below 1.0 ha and are meant for end-users to build land-based developments for their own operations. With the waiver, end-users will have more flexibility to customise their developments to suit their operations.

• To ensure that such plots continue to be used primarily for end-users’ own operations, successful tenderers (or subsequent owners) will not be allowed to strata subdivide the developments for sale to other companies for the full tenure. Currently, strata subdivision is prohibited for five years from the award of the Temporary Occupation Permit.

• The minimum building specification requirements will continue to apply to the larger IGLS plots, which are meant for developers to build multiple-user factories to serve the needs of industrialists.

Answer: 

• The lease of the Land is subject to these Conditions of Tender and the Technical Conditions of Tender referred to in “Developer’s Packet”.

• Each tenderer shall be taken to have read and shall be bound with full notice and knowledge of the contents of the form of Building Agreement, form of Lease, these Conditions of Tender and the Technical Conditions of Tender including all additions, variations and amendments to the form of Building Agreement, form of Lease, these Conditions of Tender and the Technical Conditions of Tender and any plans, drawings, reports and other documents referred to, mentioned in, appended or annexed to these Conditions of Tender and the Technical Conditions of Tender, made by JTC prior to the time and date for submission of tenders as mentioned below and notified to purchasers of the Developer’s Packets obtained directly from JTC. All references herein to the form of Building Agreement, the form of Lease, these Conditions of Tender and the Technical Conditions of Tender (collectively “Tender Documents”) shall be deemed to mean such documents as added to, varied or amended as aforesaid.

• The Land is to be leased subject to all easements and rights (if any) subsisting thereon and moreover without any obligations on the part of JTC to define the same respectively. The Land is open to inspection and may be viewed by tenderers on the application. The Land is to be taken on an “as is where is” basis, including any defects (latent, inherent or otherwise) and each tenderer shall be deemed to have full notice and knowledge.

• “Developer’s Packet” for the Land containing Particulars and Conditions of Tender (with Form of Building Agreement at Appendix F and Form of Lease at Appendix G), Technical Conditions of Tender, Conditions and Requirements of the Authorities/ Public Utility Licensees, Form of Tender, Submission Envelope Covers, Enquiry Forms, Control Plans, Topographic Survey Plan, Soil Test Report and other relevant documents may be obtained from JTC at a cost of Dollars One Hundred ($100.00) only plus Goods and Services Tax at the prevailing rate.

Answer: 

• All tenders submitted shall remain valid for a period of ten (10) weeks, with effect from 11.00am on the tender closing date.

• JTC reserves the right to extend the Tender Validity Period by such period not exceeding two (2) weeks immediately after the Tender Validity Period. JTC shall provide all tenderers with three (3) days’ prior written notice of any extension to the Tender Validity Period, which extended period shall also form part of and be referred to as the “Tender Validity Period”. Each tenderer shall be deemed to have agreed and accepted that the tender submitted by him shall in such event remain valid until expiry of any extension to the Tender Validity Period.

• Every tenderer shall pay a tender deposit of at least five percent (5%) of the Tendered Sale Price.

• The tender deposit mentioned shall be paid at the time of submission of tender in the manner following:

-- by way of one (1) or more cashier’s order(s) made payable to “Jurong Town Corporation” in the manner hereinafter appearing;

-- by way of bank transfer to the bank account of JTC hereinafter mentioned and in the manner hereinafter appearing;

-- by providing (as security for the payment) one or more bank/insurance guarantee(s) issued in favour of “Jurong Town Corporation” in the form and in the manner hereinafter set out for the total sum equivalent to the Tender Deposit; or

-- by a combination of two (2) or more of the above mentioned methods for the total sum equivalent to the Tender Deposit.

Payment in CASH or by CHEQUE or any other means WILL NOT BE ACCEPTED.

Answer: As soon as JTC has selected the Successful Tenderer, JTC shall inform the Successful Tenderer of the acceptance of his tender by letter (“Tender Acceptance Letter”) sent to him by post to the address given in his tender and such letter so sent shall be deemed to have been received by the addressee in due course of post. The date of the Tender Acceptance Letter from JTC to the Successful Tenderer shall be deemed to be the date of acceptance by JTC of the tender.

The Successful Tenderer shall pay the proper amount of ad valorem duty chargeable on the Tender Acceptance Letter under the Stamp Duties Act (Cap 312) within fourteen (14) days of the date thereof and shall within ninety (90) days from the date of the Tender Acceptance Letter (inclusive of the date of the Tender Acceptance Letter) or the latest by 11:00 am on the 90th day from the date of the Tender Acceptance Letter (“90-Day Period”) furnish to JTC :

• a copy of the Certificate of Stamp Duty issued by the Commissioner of Stamp Duties for the Tender Acceptance Letter; and

• being attached to the said Certificate of Stamp Duty, a copy of the Tender Acceptance Letter bearing a certification by an Advocate & Solicitor that it is a true copy of the document referred to in the said Certificate of Stamp Duty.

For the avoidance of doubt, for the purpose of calculating the ninety (90) days, the date of the Tender Acceptance Letter is considered as the 1st (first) day.

Answer: 

Payment of 25% of Tendered Sale Price

• The Successful Tenderer shall within 28 days from the date of JTC's acceptance of his tender (time in this respect being the essence of the contract and the 28 days shall include the date of JTC’s acceptance) furnish JTC one or more cashier’s order in favour of and immediately payable to the “Commissioner of Lands, SLA” for twenty-five per cent (25%) of the Tendered Sale Price together with the amount of GST chargeable in relation to the payment of such 25% of the Tendered Sale Price SAVE that such cashier’s order or orders shall comprise or collectively comprise (as the case may be) such sum of the 25% of the Tendered Sale Price already furnished to JTC pursuant to Condition 13 and/or Condition 17 by way of Tender Deposit or otherwise;

Payment of Balance of Tendered Sale Price

• On or before the expiry of the 90-Day Period from the date of JTC’s acceptance of his tender (time in this respect being also the essence of the contract and the 90 days shall include the date of JTC’s acceptance) furnish JTC one or more cashier’s order in favour of and immediately payable to the “Commissioner of Lands, SLA” for the balance of seventy-five per cent (75%) of the Tendered Sale Price together with the amount of GST chargeable in relation to the payment of such balance amount.

Answer: The Successful Tenderer shall forthwith pay to JTC on demand AND in such manner stipulated in these Conditions of Tender OR in such other manner notified by JTC when not expressly stipulated as such -

• all legal costs and all other expenses incurred or to be incurred by JTC in connection with the preparation, finalisation and completion of these tender documents for the Land and in respect of matters incidental hereto or arising therefrom;

• the cost of preparation of plans in respect of the Land, stamp duties payable on the Lease and Supplemental Leases (if any) and all other costs and expenses incurred or to be incurred in connection with the preparation and completion of the Building Agreement and the Lease and Supplemental Leases (if any) and matters incidental thereto or arising therefrom;

• all costs and fees including legal costs as between solicitor and client incurred by JTC in connection with the enforcement of the Conditions of Tender, the Technical Conditions of Tender and the Building Agreement (in the event of any breach of any of the aforesaid) and in respect of all matters incidental thereto or arising therefrom; and

• whatever amount(s) of Goods and Services Tax (GST) charged or chargeable in relation to the lease of the Land and the supply of any goods or services by JTC to the Successful Tenderer.

Answer: 

• Prior to the signing of the Building Agreement by the parties thereto, the Successful Tenderer shall not mortgage, charge or encumber the Land and the Development in any way and shall ensure that the Land and the Development are not mortgaged, charged or encumbered in any way. In this connection, the Successful Tenderer shall ensure that no caveat, other than that lodged by or on behalf of the Successful Tenderer claiming an interest in the Land and the Development pursuant to the JTC’s acceptance of his tender, is lodged with the Registrar of Titles under the Land Titles Act (Cap. 157) by any person or party with whom he has any dealing claiming any interest in the Land and the Development.

• The Successful Tenderer may upon or after the signing of the Building Agreement by the parties thereto, with JTC’s prior written consent, mortgage or charge the Land and the Development. In respect of JTC’s prior written consent for the mortgage or charge, JTC’s prevailing requirement is that the Successful Tenderer (or his solicitor) shall submit a Notice of Mortgage to JTC within seven (7) days from the date of creation of mortgage or charge.

Answer: The Tender is required to state the exact usage of the Land in the Form of Tender and this shall be the Authorised Use of the Land and there shall not be any change in the Authorised Use without the prior written consent of JTC. If required by JTC, the tenderer shall submit to JTC, the Industrial Allocation Clearance from the National Environment Agency for the applicable Authorised Use. If such Clearance is not submitted to JTC by the time stated by JTC, the tender submitted by such tenderer may be disqualified or rejected.

Answer: 

• The Successful Tenderer shall be required to develop the Land in accordance with the Building Agreement, these Conditions of Tender and the Technical Conditions of Tender (“Development”).

• The units built in the Development shall comply with technical specifications of minimum floor loading capacity of 7.5 kN/sqm, a minimum floor-to-ceiling height of four (4.0) metres and minimum electrical provision of 120 VA/sqm.

• For the purpose of the Development, in respect of multi-user industrial developments, the gross floor area (“GFA”) of each unit shall not be less than one hundred and fifty (150) square metres. In the event, the Successful Tenderer is allowed to strata subdivide the Development, the GFA of each strata subdivided unit shall also not be less than one hundred and fifty (150) square metres.

• For the purpose of the Development, in respect of multi-storey industrial developments, the Successful Tenderer shall be required to provide the following number of goods/service lift(s), based on the maximum permissible GFA of the Land, with a minimum lift car size of 2.0 m by 3.0 m and loading capacity of 2.5 tons. The Successful Tenderer is also to provide the required number of loading bay(s) to serve the Development. This requirement is also applicable to Development(s) on each of the subdivided plot(s) should subdivision be allowed.

• Minimum Provision of Goods/Service Lift(s) and Loading Bay(s)

Answer: The Successful Tenderer shall be required to construct and obtain or ensure the construction and the issue by the Authorities of TOP(s) for the whole of the Development within the project completion period of sixty (60) months computed from the date of acceptance of tender by JTC (“Project Completion Period”). Factors like inclement weather, festive occasions, tight labour market and other reasons which may delay or affect the progress of the Development have been taken into consideration in the determination of the Project Completion Period by JTC.

Answer: Vacant possession of the Land shall be delivered to the Successful Tenderer upon the receipt by JTC of the payments and documents mentioned in the Tender Documents. 

Answer: At all times during the Lease Term -

• • The Successful Tenderer shall not subdivide the Land or any part thereof.

  • The Successful Tenderer shall not strata subdivide the Land or any part thereof.

Answer: Where the tenderer is a company not incorporated in Singapore, the tenderer shall also submit together with the duly completed Form of Tender in accordance with Condition stated, copies of the following certified true copies by a director or corporate secretary of the company:

• Certificate of Incorporation or registration in its place of incorporation or origin or a document of similar effect; and

• particulars of the company relating to its registered office address, principal activities, share capital, officers, directors and shareholders as registered with and maintained by the Authorities at its place of incorporation or origin

Answer: 

• where a tender for the Land is submitted in the name of a partnership or sole proprietorship, the partners or sole proprietor, as the case may be, at the Tender Closing Date, shall be deemed to be the tenderer and if such tender is accepted by JTC, the Successful Tenderer; and

• shares of a company registered in the name of a partnership or sole proprietorship shall be deemed to be owned by the partners or sole proprietor as at the date of registration of such shares.

Answer: During the first five (5) years from the TOP Date (as defined in the Conditions of Tender) (“First 5 Years”), the Lessee shall occupy at least 50% of the gross floor area of the Development (“Mandatory Occupation Requirement”).

Answer: The Lessee shall not sell, sublease, assign, transfer or otherwise dispose of the Land or any part thereof, except that –

• during the First 5 Years, the Lessee may sublease not more than 50% of the gross floor area of the Development 

• after the First 5 Years, the Lessee may sell, sublease, assign, transfer or otherwise dispose of the Land

Answer: Possession shall be given to the Successful Tenderer by delivering to him a letter stating that possession of the Land shall be deemed to be handed over to him with effect from such date as specified in the said letter and such date shall be the commencement date of the Lease Term.

Answer: Project Completion Period and Liquidated Damages

• The sale conditions of all government sale sites include a requirement that the development must be completed within a specified project completion period (PCP). Previously under the conditions of sale, developers who failed to complete their projects within the PCP were required to pay the government liquidated damages calculated at a rate of 2% of the land price per month of delay in the completion of the projects.

Extension Premium Scheme

• With effect from 1 May 2000, the land sales conditions for new government sale sites will no longer carry a liquidated damages (LD) clause for late completion of the project. Instead, developers who need more time to complete their development will need to apply to the respective government land sales agent to extend the project completion period (PCP). Any extension given will be subject to payment of an extension premium based on the following schedule of rates:

• 1st year - 8% per annum (as a percentage of the tendered land price)

• 2nd year - 16% per annum (as a percentage of the tendered land price)

• 3rd and subsequent years - 24% per annum (as a percentage of the tendered land price)

• The extension premium scheme will be more effective in encouraging developers to address early the problems which may lead to delay in completing their projects. This is because the developer has to apply for approval to extend the PCP before the stipulated completion date and pay for the extension up front. On the other hand, the LD clause operates only after the due completion date, hence some developers may neglect the problems causing delays until it is too late.

Answer: The Building Agreement shall be deemed to form part of these Conditions of Tender, which together with the Technical Conditions of Tender shall also be deemed to form part of the terms and conditions of the Building Agreement as though they were specifically set out in the Building Agreement and are to be observed and performed by the Lessee therein mentioned. HOWEVER, if there is any conflict between the provisions of the Building Agreement and these Conditions of Tender or the Technical Conditions of Tender, the provisions of the Building Agreement shall have overriding effect.

The Successful Tenderer shall upon receipt of the Building Agreement in duplicate:

• Sign and date the two (2) copies of the Building Agreement; and

• Return to JTC the original and duplicate of the Building Agreement, within twenty-one (21) days of the date of the Building Agreement.

• JTC will execute the Building Agreement and forward the original to the Successful Tenderer for safekeeping.

Answer: The Successful Tenderer may with the prior written consent of JTC:

• appoint another company, whether existing or newly formed, to carry out the Development and sign the Building Agreement in place of the Successful Tenderer; or

• together with one or more individuals or companies, whether as partners in an existing or newly formed partnership or otherwise, carry out the Development and sign the Building Agreement.

Where the consent of JTC is given, the Successful Tenderer shall ensure that it:

• holds a controlling interest of more than fifty percent (50%) of the shares in the Approved Developer and will continue to hold and retain such a controlling interest in the appointed company until the TOP Date; or

• holds a controlling interest of more than fifty percent (50%) share in the Land and the Development and will continue to hold and retain such a share until the TOP Date.

Answer: Where the Successful Tenderer who will be signing the Building Agreement as required under Condition 4 to carry out and complete the Development is a company or includes one or more companies, such company or each of such companies shall, except where the prior written consent of JTC is obtained:

• ensure that its shareholders as at the Tender Closing Date hold and continue to retain a controlling interest of more than fifty percent (50%) of the shares in the company until the date of the issue by the Authorities of TOP(s) for the whole of the Development (“TOP Date”). In this respect it shall ensure, amongst other things, that no transfer, allotment or acquisition of its shares are carried out such as would affect the specified controlling interest of more than fifty percent (50%); and

• inform JTC of all transfers, allotments and acquisitions of its shares, all changes of shareholders and their shareholdings made up to the TOP Date.

If the Successful Tenderer who will be signing the Building Agreement is a company or includes one or more companies and if any of the shareholders of any such company as at the Tender Closing Date is in turn also a company (“Shareholder Company”), such Shareholder Company shall, except where the prior written consent of JTC is obtained:

• ensure that its shareholders as at the Tender Closing Date hold and continue to retain a controlling interest of more than fifty percent (50%) of the shares in the Shareholder Company until the TOP Date. In this respect it shall ensure, amongst other things, that no transfer, allotment or acquisition of its shares are carried out such as would affect the specified controlling interest of more than fifty percent (50%); and

• furnish to JTC on or before the expiry of the 90-Day Period an Undertaking executed under seal in the form and on such terms and conditions as set out.

Answer: JTC reserves the right to reject the highest bid price or any tender or any part thereof.

Tenders submitted by the following categories of persons and companies will be disqualified and will not be considered :

• persons under the age of twenty-one (21) years;

• persons and companies debarred by the Government from participating in tenders or auctions of the ministries and departments of the Government and statutory boards;

• persons against whom court proceedings for bankruptcy have been commenced;

• persons adjudicated bankrupt;

• persons who are mentally disordered and incapable of managing themselves or their affairs;

• companies against which court proceedings for winding up have been commenced or companies in liquidation;

• companies placed under receivership and a receiver appointed to manage the affairs; and

• companies for which an application has been made for the appointment of a judicial manager or companies placed under judicial management.

Answer: Environmental Baseline Study :

• The Successful Tenderer shall conduct an environmental baseline study to determine the presence of minerals, hydrocarbons and chemicals on and beneath the Land and to submit to JTC a written copy of the results of the Environmental Baseline Study within four (4) months from the commencement date of the Lease Term.

Reinstatement at End of Lease Term :

• To remove all buildings, structures, fixtures, fittings, installations and equipment, or any part of it as may be specified by the Lessor;

• To engage a competent independent consultant, who shall be from the relevant list of third party specialist consultants published at the relevant time by the National Environment Agency or its successor, to conduct another Environmental Baseline Study (“Subsequent Study”) to determine the level of contamination at, on and beneath the Land and buildings and to submit a written copy of the Subsequent Study to the Lessor;

• If the results of the Subsequent Study indicate that the level of minerals, hydrocarbons or chemicals present at the time of the Subsequent Study exceeds that of the First Baseline Study, to properly carry out within the time stipulated by the Lessor, all works necessary to decontaminate the Land to the state and condition existing at the time of the First Baseline Study and to the Lessor’s and the Authorities’ satisfaction; and

• To reinstate any damage to and yield up the Land in tenantable repair or original condition in accordance with the Lessee’s covenants.

Answer: 

• Any queries, doubts or uncertainties about these Conditions of Tender or the Technical Conditions of Tender contained in the Developer’s Packet for the Land on which the tenderer requires clarification from JTC are to be listed or set out clearly in the Enquiry Forms supplied in the Developer’s Packet and 

• Such Enquiry Forms must be submitted to and received by JTC not later than two (2) weeks prior to the submission of tenders.

• JTC’s replies to such queries, doubts and uncertainties shall be sent to the inquirers not later than one (1) week prior to the date for submission of tenders.

The information listed above is to be used as a reference resource for your personal consumption only. It is not intended to be and does not constitute financial advice, investment advice or any other advice, 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.

• 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.