Third-Party JTC Build and Lease Scheme

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.  

One of our key services is the Third-Party JTC Build and Lease Scheme. We provide expert guidance on how to successfully apply for this scheme, including information on third-party facility providers, allowable third-party facility providers for JTC Facility, subletting by third-party facility providers, minimum occupation period and gross floor area for original anchor tenant, the original anchor tenant leave after fulfilling the minimum occupation period, assignment prohibition period for third-party facility providers for JTC Build and Lease Contracts / JTC Design & Build / JTC Sale and Leaseback for JTC Facility, and upfront land premium.

Answer: To facilitate private sector participation in the industrial market, JTC allows third-party facility providers to be their lessees if they engage in "Third-Party Build and Lease" (Third-Party B&L) or "JTC Sale and Leaseback" (S&LB) scheme.

• The Third-Party JTC Build and Lease - B&L scheme enables key and strategic industrialists to appoint a qualifying third-party facility provider to undertake the development of a customised facility under JTC Design & Build according to the industrialist's specifications. In return, the industrialist undertakes to lease the facility from the third-party facility provider under a set of negotiated terms and conditions agreed between them. The Third-Party JTC Design & Build - B&L scheme provides companies with the option of operating in customised facilities without having to pay the development costs up front.

• Under the S&LB scheme, the industrialist assigns the completed facility to the third party facility provider, who in turn leases back the facility to the industrialist for continual usage.

Answer: JTC allows the following list of third-party facility providers to participate in Third-Party JTC Build & Lease and JTC Design & Build / JTC Sale and Leaseback for JTC Facility:

• Trusts/ Investment Funds / JTC Reits that are holders of Business Trust Licence/ Capital Markets Services Licence issued by MAS (see MAS legislation guidelines);

• Developers who have an established and credible track record of having been involved in the business of developing property-related projects in the last 5 years; and

• Industry Association/ Consortium Sponsored Vehicles that are supported by economic agencies e.g. EDB and SPRING.

Answer: If the original anchor tenant leaves, third-party facility providers can apply via the customer service portal to replace them with new anchor tenant(s).

The proposed new anchor tenant(s) must continue to occupy at least 70% of the GFA. If there is more than one anchor tenant, each one must occupy at least 1,000 sqm.

The proposed new anchor tenant(s) must also meet JTC's assessment criteria based on:

• The productivity of the space being used

• Creation of good quality jobs and value-add to the economy

During the subletting period, if the anchor tenant(s) wish to increase/decrease their GFA by more than 20% or change their usage, the third-party facility provider will need to re-apply to JTC for the anchor subletting.

The remaining 30% of the GFA can be sublet to other businesses. However, this is subject to JTC's assessment of usage compatibility, as well as payment of applicable subletting fees.

Further details on the subletting policy can be found here.

Answer:  

• Original anchor tenant in Third-Party B&L programme

Minimum Gross Floor Area - To occupy at least 50% GFA within 5 years from obtaining the first TOP, and at least 70% thereafter

Minimum Occupation Period - During the investment period and minimally 5 years thereafter

The original anchor subtenant is required to occupy minimum 50% of GFA within 5 years from the first TOP for the site and minimum 70% thereafter.

The balance space of a maximum 50% GFA within 5 years from obtaining TOP and a maximum of 30% thereafter can be sublet to other industrialists, subject to usage, compatibility and payment of sublet fee.

• Original anchor tenant in S&LB programme

Minimum Gross Floor Area - To occupy at least 70% GFA

Minimum Occupation Period - Minimally 5 years from date of legal completion of assignment (Leases with ≤ 30 Years Remaining)

Minimum Occupation Period - Minimally 10 years from date of legal completion of assignment (Leases with > 30 Years Remaining)

Answer: Should the original anchor tenant leave after fulfilling the minimum occupation period, the third-party facility provider is required to ensure that the minimum 70% GFA is occupied by other approved anchor tenant(s) at all times. Multiple anchor tenants are allowed to jointly fulfil the minimum 70% GFA requirement and each is to occupy at least 1,000 sqm.

An approved anchor tenant is defined as a company that satisfies JTC’s assessment of value-added, remuneration per worker and skilled worker profile, as well as the minimum GFA requirement. Upon qualification as an anchor tenant, the anchor tenant can stay for any period in the building and reassessment is only required if there is a change in its GFA take-up by more than 20% and/or change in use.

Answer: Third-party facility provider lessees in new third-party JTC build and lease contracts / JTC Design & Build

• Assignment Prohibition Period  - During the investment period and 5 years thereafter

Third-party facility providers who have purchased JTC Design & Build facilities from the secondary market (i.e. new assignment contracts)

• Leases with ≤ 30 Years Remaining - 5 years from the date of legal completion of the assignment

• Leases with > 30 Years Remaining - 10 years from the date of legal completion of the assignment

All third-party facility provider lessees for JTC build and lease contracts / JTC Design and Build / JTC Sale and Leaseback

• Leases with < 5 years remaining

Answer: With effect from 1 January 2013, the payment scheme for new assignment contracts involving third-party facility providers  JTC Build & Lease and JTC Design & Build / JTC Leaseback has been revised to upfront land premium.

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.