SINGAPORE INDUSTRIAL PROPERTY MARKET OVERVIEW
The revised lease assignment policy will prevent speculative building and speculative buying/selling of
facilities in the secondary market, which is in line with the Government’s broader aim of ensuring the
availability of affordable industrial premises for genuine industrialists/end-users.
Lessees in most genuine sale-and-leaseback (“S&L”) transactions will not be affected as the typical
leaseback period is medium to long-term. However, industrialists and third party facility providers
like REITs/developers who own industrial properties on JTC leased sites will now have to hold these
properties for a longer period before they may sell them. This may lead to fewer en bloc industrial
property sales opportunities and a slowdown in such sales activities.
2.2.4.3 REVISED SUBLETTING POLICY
JTC tightened its subletting policy from 1 October 2014, lowering the maximum allowable sublet
quantum from 50% to 30% of the total GFA of the building. However, this sublet quantum cap does
not apply to lessees subletting to their wholly-owned subsidiary or company in which they have a
majority shareholding of at least 51%.
The revised ruling also disallows tenants renting industrial space directly from JTC to sublet any of
that space. JTC has given a three-year grace period – until the end of 2017 – for existing tenants and
lessees to adjust to the revised subletting rules.
Changes to JTC’s Subletting Policy (effective from 1 October 2014)
Affected Parties
Current Policy
Revised Policy from 1 October
2014
End-user Lessees
Can sublet up to 50% of GFA to
non-related companies.
Can sublet up to 50% of GFA
to non-related companies
within 5 years from obtaining
Temporary Occupation Permit
(“TOP”), and 30% thereafter.
Third Party Facility
Providers
Must sublet at least 50% of GFA to
anchor subtenants.
No minimum occupation
period for subsequent anchor
subtenants.
Must sublet at least 50% of GFA
to anchor subtenants within 5
years from obtaining TOP, and
70% thereafter.
Minimum occupation period of
3 years for subsequent anchor
subtenants.
JTC’s Tenants
Can sublet up to 50% of GFA
to non-related companies.
Not allowed to sublet.
Source: JTC
CAMBRIDGE INDUSTRIAL TRUST | ANNUAL REPORT 2014
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