Assignment Prohibition Period for Third Party Facility Providers
(effective from 15 November 2013)
Situation
Assignment Prohibition Period
(i.e. duration inwhich Lessee is not allowed to assign)
Third party facility provider lessees in new third
party build-and-lease contracts
During investment period and 5 years thereafter
Third party facility providers who have
purchased JTC facilities from the secondary
market (i.e. new assignment contracts)
Leases with ≤ 30 Years Remaining
• 5 years from date of legal completion of
assignment
Leases with > 30 Years Remaining
• 10 years from date of legal completion of
assignment
All third party facility provider lessees
Leases with < 5 Years Remaining
• all owners of industrial premises on JTC-
leased sites with less than five years' balance
lease are no longer allowed to sell them
Source: JTC
Additionally, the lessee may sell to a third party facility provider after the assignment prohibition
period, provided that it leases back at least 50% of the GFA and minimally 1,500 sq m (about 16,146
sq ft) for a minimum occupation period. The remaining GFA can be sublet to other industrialists (i.e.
normal subtenant), subject to usage and compatibility.
Minimum Occupation Period (revised from 15 November 2013)
and Gross Floor Area for Anchor Tenants
Situation
Minimum Occupation Period
(i.e. duration in which anchor
tenant is required to operate on
the premises)
Minimum GFA
(i.e. space which anchor
tenants are required to occupy)
Anchor tenants in new
third party build-and-lease
programme
During the investment period and
5 years thereafter
Collectively, to occupy at least
50% GFA and each to occupy
minimally 1,500 sq m
(about 16,146 sq ft)
Anchor tenants in new
sale-and-leaseback
programme
Leases with ≤ 30 Years Remaining
• 5 years from date of legal
completion of assignment
Leases with > 30 Years Remaining
• 10 years from date of legal
completion of assignment
Collectively, to occupy at least
50% GFA and each to occupy
minimally 1,500 sq m
(about 16,146 sq ft)
Source: JTC
CAMBRIDGE INDUSTRIAL TRUST | A WINNING FORMULA
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