What is available for JTC Industrial Land Tender in 2024 under the Industrial Government Land Sales (IGLS)?

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.

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. 

We provide comprehensive information on the opportunities available for JTC Industrial Land Tender in 2024 under the Industrial Government Land Sales (IGLS) program. This includes historical data on JTC Industrial Land Sold from 2014 to 2024, a detailed FAQ section addressing the tender process, and insights into the contents of tender documents. We also offer guidance on mandatory occupation requirements, land and strata subdivision, tender submission, extension of tender validity period, tender deposit, stamp duty payment on tender acceptance letter, environmental baseline study, solar photovoltaic panels, controlling interest requirements for successful tenderers, consent for third-party development and building agreement, payment of tendered sale price, building agreement signing and payment, land possession, and sale, lease, and mortgage procedures.

Answer: 

• Historical Data of JTC Industrial Land Sold from 2017 to 2024

• Historical Data of JTC Industrial Land Sold from 2014 to 2016

Answer: LAUNCH OF SECOND HALF 2024 INDUSTRIAL GOVERNMENT LAND SALES PROGRAMME

The Ministry of Trade and Industry (MTI) has launched its Industrial Government Land Sales (IGLS) programme for the Second half of 2024 (2H 2024). There will be 5 sites in the Confirmed List and 5 sites in the Reserve List, with a total site area of 13.0 ha.

Under the Reserve List, the Government will put up a site for tender if:

• (a) An interested party submits an application with an offer of a minimum purchase price that is acceptable to the Government; or

• (b) There is sufficient market interest in the form of more than one unrelated party submitting minimum purchase prices that are close to the Government’s Reserve Price for the site within a reasonable period.

Answer: The JTC Industrial Land Tender is a process where JTC Corporation, the leading agency for industrial development in Singapore, invites offers for the lease of industrial land through a competitive tendering process. The lease is governed by specific conditions outlined in the Conditions of Tender and Technical Conditions of Tender.

Answer: Interested parties can participate by purchasing the Tenderer’s Packet from JTC, completing the necessary forms, and submitting a bid before the tender closing date. The Packet contains all relevant information and documents needed for the submission. The Tenderer’s Packet costs SGD 185.30, inclusive of GST. 

Answer: The Tenderer’s Packet includes the Particulars of Tender, Conditions of Tender, Technical Conditions of Tender, Form of Tender, Building Agreement, Form of Lease, Control Plans, Topographical Survey Plan, Soil Investigation Report, and other relevant documents.

Answer: Tenders should be submitted in a sealed envelope and deposited in the Tender Box located at The JTC Summit, 8 Jurong Town Hall Road, Singapore 609434, by the specified deadline.

Answer: The minimum tender deposit required is 5% of the Tendered Sale Price. This deposit demonstrates the tenderer's financial commitment to the tender process.

Answer: The tender deposit can be paid via bank transfer to JTC’s designated account or by providing a bank guarantee. Cash and cheque payments are not accepted to ensure a secure and traceable payment process.

Answer: The Tender Validity Period is ten weeks from the Tender Closing Date, during which JTC evaluates the tenders. JTC may extend this period by up to two weeks with prior notice to all tenderers if needed.

Answer: Yes, JTC reserves the right to reject any tender, including the highest bid, without providing a reason. This ensures JTC has the flexibility to select tenders that best meet their criteria.

Answer: Tenders can be disqualified for reasons such as missing the tender deposit, incomplete details, late submission, non-compliance with the Conditions of Tender, or if the tenderer is a debarred entity, under 21, bankrupt, or in liquidation.

Answer: You need to submit a completed Form of Tender, the tender deposit, and additional documents if the tenderer is a company not incorporated in Singapore, including proof of the company's registration and relevant authorization to submit the tender.

Answer: The lease term for the industrial land offered in the tender is typically 20 years, upon meeting the Conditions of Tender and Technical Conditions of Tender.

Answer: The Mandatory Occupation Requirement stipulates that the lessee must occupy at least 50% of the gross floor area of the development during the first five years from the TOP (Temporary Occupation Permit) Date to ensure the land is actively utilized for its intended purpose.

Answer: No, the lessee is not allowed to subdivide or strata subdivide the land during the lease term. This restriction maintains the integrity and intended use of the industrial land.

Answer: Assignment of the lease is not allowed without prior written consent from JTC. Specific conditions apply during the first five years of the lease term to ensure the land is used as intended and to prevent speculative activities.

Answer: Non-compliance with the Conditions of Tender can result in forfeiture of the tender deposit, termination of the lease, and other legal actions by JTC to ensure compliance and proper use of the land.

Answer: The lessee must comply with JTC’s Environmental Site Assessment Requirements and Technical Guideline, including conducting environmental assessments, decontaminating the land if necessary, and ensuring sustainable development practices.

Answer: The lessee must submit detailed layout plans, building plans, and other required documents to JTC and relevant authorities for approval before commencing any development work to ensure compliance with planning and building regulations.

Answer: The lessee must install and maintain solar photovoltaic panels on the roof of the building if the available roof area is at least 800sqm, promoting sustainable energy use and compliance with JTC’s green initiatives.

Answer: JTC has the right to terminate the lease early if the lessee fails to comply with the Conditions of Tender, such as non-payment of rent, unauthorized alterations, or failure to maintain the land, ensuring proper use and compliance.

Answer: The lessee must regularize and remove any encroachments at their own cost, complying with JTC’s requirements. Failure to address encroachments can lead to penalties and legal actions.

Answer: The Project Completion Period is typically 60 months from the date of the Tender Acceptance Letter, within which the development must be completed and operational, ensuring timely utilization of the land.

Answer: With JTC’s consent, an Approved Developer can be appointed to carry out the development and sign the Building Agreement in place of the Successful Tenderer, ensuring professional and compliant development.

Answer: Possession is delivered upon receipt by JTC of all required payments and documents. A possession letter will be issued stating the possession date, which marks the start of the lease term.

Answer: The land cannot be used for any purpose other than development without prior approval from JTC and relevant authorities, ensuring compliance with the intended use and development timeline.

Answer: The Building Agreement formalizes the terms and conditions for the development and lease of the land. It must be signed by both JTC and the Successful Tenderer and is legally binding.

Answer: JTC will inform the Successful Tenderer through a Tender Acceptance Letter. The Successful Tenderer must then pay the appropriate stamp duty and submit other required documents within specified timelines to finalize the lease agreement.

Answer: Failure to sign the Building Agreement within the specified time can result in termination of the tender and forfeiture of deposits, ensuring only committed and compliant tenderers proceed.

Answer: The Successful Tenderer must pay 25% of the Tendered Sale Price within 28 days from the Tender Acceptance Letter date and the remaining 75% within 90 days, ensuring timely financial commitment.

Answer: The lessee must decontaminate the land to JTC’s satisfaction at the end of the lease term, complying with JTC’s Environmental Site Assessment Requirements and Technical Guideline, ensuring the land is returned in good condition.

Answer: Mortgaging the land is allowed only after signing the Building Agreement with JTC’s prior written consent, ensuring financial stability and compliance.

Answer: A successful tender submission requires complete and accurate documentation, compliance with all Conditions of Tender, timely submission of the Tender Deposit, and adherence to JTC’s requirements and guidelines, demonstrating commitment and capability.

Answer: Errors or omissions in the tender documents do not invalidate the tender or entitle the Successful Tenderer to compensation or reduction in the Tendered Sale Price, ensuring clarity and responsibility.

Answer: JTC will conduct a random ballot to select one for acceptance, with tenderers invited to witness the ballot, ensuring fairness and transparency.

Answer: The Successful Tenderer must pay the ad valorem duty within 14 days of receiving the Tender Acceptance Letter, ensuring timely compliance with tax obligations.

Answer: The Successful Tenderer will receive vacant possession of the JTC Land upon fulfilling the requirements stated in the Tenderer's Packet, which includes making the necessary payments and submitting the required documents as specified by JTC.

Answer: The commencement date of the Lease Term is established by delivering a letter to the Successful Tenderer, indicating the specific date from which possession of the Land is deemed to be handed over to them. This designated date will mark the beginning of the Lease Term.

Answer: By accepting the Land on an "as is where is" basis, the Successful Tenderer acknowledges and agrees to assume responsibility for the condition and state of the Land as described in the relevant section of the Tenderer's Packet. Any existing conditions, limitations, or factors related to the Land are accepted by the Successful Tenderer without alteration or modification.