What are the Guidelines for JTC Renewal of Lease?

Answer: 

• When to apply for JTC Lease Renewal / Extension of Lease for JTC Property / Industrial Land? - JTC's Customer Engagement Officers will get in touch with you about 6 years before the expiry of your lease to discuss your business plans moving forward. If you intend to continue operations on site, you are encouraged to apply for lease renewal at least 3 years before the expiry of your lease. This will help you in the planning of your prospective investments and provide an adequate length of time to plan for relocation in the event you are not granted renewal.

• What is JTC Investment Needed for Fixed Asset Investment (FAI) JTC Renewal of Lease / Extension of Lease for JTC Property / Industrial Land? - Fixed Asset Investment in new Plant and Machinery (P&M), Building and Civil Works (B&C) and Refurbishment are required when you renew your lease to ensure that your land will continue to be used productively. For buildings and structures that you intend to retain, it is necessary to carry out refurbishment works as specified by JTC. These could include upgrading of façade and minor repair, resurfacing of driveway and minor repairs, and erection of new fencing or gate. To discourage lessees from declaring investment amounts that exceed their intended investments, the lease term shall be pro-rated in the event of a shortfall between what was declared and the actual total investments made at the expiry of the investment period.

• What is the Minimum Gross Plot Ratio (GPR) for JTC Renewal of Lease / Extension of Lease for JTC Property / Industrial Land? - You are required to meet the minimum gross plot ratio for the proposed lease renewal to optimise your land use. One way to meet the minimum Gross Plot Ratio (GPR) is to reduce the land area of your site. You may consider applying for the various incentive schemes for land intensification, including: Land Intensification Allowance (LIA) is administered by EDB. Applicants are required to meet the GPR benchmark and other qualifying criteria.Land Productivity Grant (LPG) helps to defray consultancy fees and/or domestic or overseas relocation costs for companies restructuring their operations to achieve land intensification or savings of at least 0.1 hectare in Singapore, in addition to other qualifying criteria.

• Productivity and Strength of Proposed JTC Business Plan - You need to ensure that you have good productivity in your existing and future use of your land, floor space and labour. These criteria include the value added to the economy, creation of good jobs, linkages with other industries as well as the strength of the business plan. 

• Proposed usage for Industrial Leases - Your proposed usage must meet the Urban Redevelopment Authority's 60:40 space utilisation rule i.e. at least 60% of your total gross floor area is used for industrial activities. You must also comply 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).

• Redevelopment Plans - If your site is affected by redevelopment plans, you may not be able to renew your lease. Please contact your Customer Engagement Officer to discuss this matter before proceeding with your application.

• Breach of Lease Covenant - You should not be in breach of any term and condition in the lease. In the event you are in breach (examples include erecting unauthorised structures, illegal dormitories, unauthorised occupation and rental arrears), you are required to rectify these before you apply for lease renewal.

Fulfillment of all the guidelines does not necessarily constitute consent from JTC for a lease renewal. In assessing your application, JTC is required to ensure that your premises will be put to the best possible use by renewing your lease and that you will be able to maximise your productivity in the extended lease term.