Additionally, JTC continues to require anchor tenants to meet two key criteria i.e. they must occupy at
least 1,500 sq m (about 16,146 sq ft) and meet JTC's requirements in value-added-per-sq-m of space
occupied, remuneration per worker and skilled-worker profile.
Due to the revised subletting policy, third party facility providers may face increased difficulties in
executing S&L transactions and also redevelopment opportunities. The search for replacement
anchor sub-tenants when secondary industrial space becomes available from expiring S&L leases is
also expected to become more challenging. Hence, anchor subtenants of space leased by third party
facility providers may have a stronger bargaining stance.
End-user lessees of land from JTC who are unable to fully utilise the building space due to changes
in business operations or business conditions will have less room to mitigate occupation costs
through subletting. Although tenants renting industrial space from JTC can renew their leases at
the end of their current term for a smaller area if they have excess space, they have less flexibility to
instantaneously rescale their space requirements to respond to any change in business climate or
operations during their existing lease term.
2.2.4.4 REVISED GUIDELINES FOR E-BUSINESS AND MEDIA USES / SUPPORTING USES IN INDUSTRIAL
DEVELOPMENTS
The Urban Redevelopment Authority (“URA”), together with MTI and economic agencies, has revised
the guidelines for ebusiness and media uses as well as supporting uses in industrial development
8
. The
revised guidelines, effective from 24 November 2014, apply to all new applications
E-business and Media Uses
Under the revised guidelines, businesses that provide telecommunications infrastructure and/
or develop software (i.e. activities previously classified as Type 1 e-business) as well as core media
activities
9
, will continue to be allowed in industrial developments. These uses will be computed as part
of the 60% predominant component and levied Industrial “D” rates.
Meanwhile, businesses that use software to conduct business electronically and non-core media
activities
10
will now be regarded as commercial uses. These activities should be located in commercial
premises andwill no longer be allowedwithin the 40% ancillary component of industrial developments.
Call Centres
Previously, only digital call centres (i.e. those that involve the use of IT) were allowed in industrial
developments. Under the revised guidelines, URA will now allow all call centres to be located in only
Business Park and B1 developments, as part of the 60% predominant component levied Industrial “D” rates.
Supporting Uses in Industrial Developments
The revised guidelines for supporting uses in industrial development, effective from 24 November
2014, are summarised in the following table:
8 All supporting uses must be kept within the 40% ancillary component of industrial developments. The 60% predominant component is safeguarded
for core industrial uses such as manufacturing and warehousing.
9 Core media activities are production services which require technical facilities (e.g. studios, high-tech production equipment).
10 Non-core media activities include the marketing, distribution and aggregation of digital content.
CAMBRIDGE INDUSTRIAL TRUST | A WINNING FORMULA
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