Third-Party JTC Build and Lease Scheme: A Comprehensive Guide

Alliance Facilities Management Pte Ltd: Your Trusted Partner in Singapore’s Industrial Property Market

• Established in 2011, Alliance Facilities Management Pte Ltd has earned a solid reputation for guiding both multinational corporations and small-to-medium enterprises through Singapore’s complex industrial property market—especially when it comes to JTC-related services. From JTC Lease Assignments and Lease Renewals to Anchor Tenant Applications and Industrial Land Tenders, our team offers end-to-end support to help your business secure approvals under stringent JTC guidelines.

Over a Decade of Proven Results

• Backed by over 100 successful JTC submissions totalling more than SGD 1 billion in value, our track record speaks for itself. We focus on delivering real results. That’s why we charge fees only upon successful approval, reflecting our unwavering confidence and commitment to your success. Our experts meticulously craft comprehensive business plan justifications, present fixed asset investments and redevelopment plans, and demonstrate job creation potential—all to reinforce your project’s economic value and win regulatory approval.

Comprehensive Facilities & Construction Management

• Beyond specialized JTC services, Alliance Facilities Management Pte Ltd provides holistic facilities and construction management solutions. Whether we’re optimizing your current facilities or overseeing new developments, our attention to detail and proactive approach ensure efficient execution while upholding the highest standards of quality and compliance.

Client-Centric Approach & Diverse Portfolio

• Our client-focused philosophy is at the heart of everything we do. We’re proud to serve a wide array of industries and business sizes, including listed equity firms (19%), MNCs (16%), and SMEs (65%). Our industry breakdown underscores our versatility:

Construction / Engineering: 23%

General Manufacturing: 13%

Food Production: 12%

Marine / Shipbuilding: 12%

Distribution / Warehousing: 11%

Chemical & Gas: 8%

Precision Engineering / Cleanroom: 6%

Logistics & Transportation: 6%

Waste Management / Automobile: 5%

Retail / Distribution: 4%

By aligning our expertise with the specific challenges of these industries, we deliver tailored solutions that drive efficiency, growth, and compliance.

Your Path to Success

At Alliance Facilities Management Pte Ltd, we believe that navigating Singapore’s industrial property market should be a strategic advantage, not a hurdle. Trust our decade of expertise, proven methodology, and results-driven fee structure to safeguard your interests, ensure a seamless approval process, and enhance your operational efficiency.

Contact Us today to discuss how we can support your business goals and help you thrive in Singapore’s industrial landscape.

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.

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.