JTC Renewal of Lease: A Comprehensive Guide

Answer: A JTC lease renewal is the granting of a new lease term for your industrial property after your current term expires. It allows you to continue operations at the site and is subject to JTC’s assessment. The maximum lease renewal period is up to 20 years, depending on your business merits, investment commitments, land intensification plans, and the Government’s long-term zoning and redevelopment intentions for the site.

Answer: All current JTC lessees whose leases are approaching expiry may apply, provided they:

• Have an operational business that meets JTC’s productivity and land use criteria.

• Are willing to commit to minimum investment levels in Plant & Machinery (P&M) and Building & Civil Works (B&C).

• Comply with site intensification requirements such as meeting a minimum Gross Plot Ratio (GPR).

• Have no outstanding breaches of lease terms.

Answer: JTC recommends that applications be submitted between 10 years and no later than 3 years before lease expiry. Applying too late may risk operational disruption, while applying too early (before halfway through your lease) is only considered under exceptional circumstances.

Answer: 

• Contact JTC – Notify your JTC Customer Engagement Officer via email of your interest.

• Prepare Documentation – Include your business and site intensification plan, financial projections, workforce data, and investment commitments.

• Submit via Customer Service Portal – Upload your completed application form and supporting documents.

• Engage AFM – Alliance Facilities Management can prepare a complete, JTC-compliant proposal on your behalf, maximising approval chances.

Answer: 

• Business transformation plans (e.g., diversification, technology adoption).

• Fixed asset investments: Detailed breakdown of existing and planned P&M and B&C investments.

• Gross Plot Ratio (GPR): Current and proposed after redevelopment.

• Job creation: Existing and projected workforce, salaries, and job categories.

• Economic contribution: Existing and projected revenues, costs, and value-add to Singapore’s economy.

• Urban Design compliance: Landscaping, façade treatment, green cover, and sustainability plans.

Answer: The minimum required investment varies by site, GPR and your Company's planned investment. Failure to meet this commitment can result in your renewed term being prorated or reduced.

Answer: Gross Plot Ratio (GPR) measures the intensity of land use by comparing total building floor area to land area. JTC requires lessees to maximise land productivity by redeveloping to meet or exceed the declared GPR. Not meeting the minimum declared GPR can result in reduced lease terms or non-renewal. All redevelopment must be completed within 3 years, with TOP and CSC obtained thereafter.

Answer: If your site is earmarked for future redevelopment, JTC may not offer renewal. You confirm this by liaising with JTC early in your planning process.

Answer: The maximum renewed term is 20 years, but your final tenure depends on:

• Meeting committed investment and GPR targets.

• Strategic importance of your operations.

• Government land use plans.

Answer: If you do not meet the agreed figures, JTC can pro-rate your lease term based on the shortfall. For example, falling short on P&M investments could reduce a 20-year renewal to as little as 10 years, according to the Pro-Rating Table in your offer.

Answer: Special Terms may include:

• Declared Investment deadlines.

• Building Works completion deadlines.

• Minimum floor loading or ceiling height requirements.

• Landscaping and façade aesthetics.

• Environmental Site Assessment (ESA) and decontamination obligations.

These terms are binding and non-compliance can lead to lease termination.

Answer: The Assignment Prohibition Period is a JTC-imposed restriction preventing you from assigning (selling or transferring) your lease:

• For at least 5 years from fulfilling your investment criteria or 3 years from the start of your renewed lease, whichever is later; and

• In the last 5 years of your renewed lease term.

If you assign, change control, or surrender the lease during this period, you may be liable to pay substantial penalties under the Mandatory Condition (see “Refund of Land Rent Assistance” below). These penalties are detailed in your Mandatory Condition Payment Table and can exceed hundreds of thousands or even millions of dollars, depending on the remaining lease term

Answer: Under JTC’s Mandatory Condition, the land rent for your renewed lease is calculated based on two assumptions:

• You will remain a JTC lessee for the entire lease term; and

• There is no change to the Control Requirement (as defined in your Key Terms — usually the percentage ownership by your Key Entity).

If these are not met for any reason — including:

• Assignment of the lease (sale/transfer);

• Any change to the Control Requirement; or

• Early surrender or termination —

you must pay JTC the applicable amount in the Mandatory Condition Payment Table provided with your lease renewal offer.

These amounts:

• Can be significant (seven-figure sums in many cases).

• Apply even before Confirmation of Tenure.

• Are in addition to all other amounts payable under your Agreement for Lease and Lease

Answer: Yes, but only with JTC’s written approval and after obtaining a Temporary Occupation Permit (TOP).

Important: Even if JTC consents to subletting, you must remain in compliance with the Mandatory Condition. Any subletting arrangement that changes the Control Requirement or effectively transfers operational control could be treated as a breach — triggering the Refund of Land Rent Assistance payment obligation. This means:

• If your ownership structure changes as a result of subletting arrangements (e.g., joint ventures, equity transfers), you may still have to pay the penalty.

• The applicable penalty amount depends on the year of breach and is listed in the Mandatory Condition Payment Table in your lease renewal offer

Answer: An ESA is a technical investigation to establish baseline soil and groundwater contamination levels. If contamination is found, you must carry out decontamination works before the lease expiry. All ESA and decontamination works must comply with JTC’s 2024 Technical Guidelines.

Answer: Yes, if your rooftop meets the criteria:

• At least 800 sqm of available contiguous rooftop space.

• A remaining lease period of 15 years or more.

If applicable, you must install solar photovoltaic (PV) systems as part of your renewal obligations.

Answer: Solar panel deployment is mandatory if:

• You have ≥800 sqm of unobstructed rooftop

• You have ≥15 years of lease tenure post-renewal

Panels must meet JTC’s specs and must be installed before the Completion Submission Date.

Answer: JTC enforces strict urban design guidelines, including:

• 30% Green Cover on-site or rooftop.

• Concealed service areas and M&E equipment.

• No open storage visible from public roads.

• Aesthetically designed façades and landscaping.

• Pedestrian connectivity via covered walkways

Answer: Yes. At renewal, JTC will inform you of:

• Prevailing posted land rates (for annual rent, revised yearly with a 5.5% cap).

• The option to pay an upfront premium for the full term.

Answer: If your property is a JTC-owned building (e.g., Standard Factory), you may need to pay a building premium upfront at renewal. JTC will confirm the amount 3 months before the new lease starts.

Answer: 

• Audited statement showing P&M costs.

• TOP and/or Certificate of Statutory Completion for Building Works.

• Qualified Person (QP) certification for compliance with approved plans.

• Any other proof required by JTC.

Answer: Absolutely. Alliance Facilities Management Pte Ltd specialises in:

• Reviewing redevelopment obligations.

• Preparing investment and business plans aligned with JTC policies.

• Managing communications with JTC to secure the maximum possible lease term.

Answer: You must vacate the property at lease expiry and reinstate it according to JTC’s Guideline on Site Return. AFM can explore relocation or alternative JTC sites for your operations.

Answer: It is JTC’s formal confirmation that you have fulfilled all investment, construction, and compliance obligations, after which the new lease term is officially secured

Answer: You must adopt environmentally sustainable building measures, such as energy-efficient façades, natural ventilation, vertical greenery, and compliance with BCA Green Mark standards

Answer: No. If your pro-rated lease term falls below 10 years due to investment shortfalls, JTC will not grant renewal.

Answer: 

• New purchases during the investment period are valued at cost.

• Relocated or existing equipment is valued at net book value at the start of the investment period.

• Installation and delivery costs can be included.

Answer: Yes. Businesses may explore financing via banks or government schemes like the Enterprise Financing Scheme (EFS) or EDB’s Land Intensification Allowance (LIA) for qualifying developments.

Answer: Typically, within 3 months from the submission of all required information and documents.

Answer: Possible charges include:

• Survey fees.

• URA processing fees.

• Legal document preparation costs.

• GST on applicable amounts.

Answer: No consultant can guarantee approval as it depends on JTC’s assessment. However, AFM’s 100+ successful submissions worth over SGD 1 billion demonstrate our proven track record. We operate on a success-based fee model, meaning you only pay when your renewal is approved.

Answer: Visit https://www.afm.com.sg/Contact-Us or contact us via WhatsApp at Danny Mak to schedule a consultation. We operate on a success-based fee model, meaning you only pay when your renewal is approved.

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.