What is the Guidelines for JTC's Renewal of Lease for Industrial Land?
GUIDELINES FOR JTC LEASE RENEWAL / JTC EXTENSION OF LEASE (INDUSTRIAL LAND)
- When to apply for JTC lease renewal?
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.
- Fixed Asset Investment (FAI) JTC Renewal of Lease
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.
- Minimum Gross Plot Ratio (GPR)
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 the 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 JTC Renewal of Lease
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).
Warehousing leases : At least 60% of your total gross floor area is used for warehousing activities i.e. for storage and distribution of goods. 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.
Your existing and proposed use should maximise the available floor space. If you are unable to do so, you may wish to consider consolidating your operations in a smaller floor space.
- Availability of Other Premises for Consolidation
If you have other industrial premises, you are encouraged to explore consolidating your operations to maximise your land use. You may also return part of your land to JTC.
Fulfilment 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.
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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