JTC Assignment of Lease / JTC Lease Transfer

Categories of JTC Assignment or Transfer of Lease

Generally, this can be classified into the following categories:

1. Outright sale of factory premises plus leasehold improvements to a prospective buyer
2. Corporate restructuring and/or assignment or transfer of the lease of property to a related or joint-venture company where there is a shareholding relationship between the assignor or transferor company and the assignee or transferee company
3. Inclusion or withdrawal of partners within a firm (Applicable for sole-proprietorship or partnership only)
4. Conversion of legal entities from sole-proprietorship or partnership to a private limited company and vice-versa
5. Taking over of business as an ongoing concern, this involves a transfer of the manufacturing facilities, plant and machinery, and staff. The buyer will assume all business interests formerly undertaken by the seller. There is essentially no change in the existing approved site activities.
6. Sale and leaseback arrangement, where the industrialist assigns the property to a third-party facility provider and in turn rents it back again from the third-party facility provider for its continual usage. The intention is generally to facilitate off-balance financing.

The Eligibility for JTC Lease Assignment

You may assign your land lease, if:

• Your lease is not within the Assignment Prohibition Period – The Assignment Prohibition Period is the duration in which you are not allowed to re-assign your lease after the last assignment. The Assignment Prohibition Period is 5 years if your remaining lease is 30 years and less; or 10 years if your remaining lease is more than 30 years

• Your remaining lease term is more than 5 years

• You have made a written offer to JTC first if your Lease Agreement contains the Right of First Refusal clause

To ensure that the Assignee puts the scarce land resource to the most optimal and productive use, the application for assignment of lease is subject to an assessment of the Assignee’s business plan which will be evaluated based on the value-add to the economy and creation of good jobs. There may be other reasons when the assignment is disallowed.

What are the Information/ Documents Needed to Complete the Application for JTC Assignment of Lease?

 The following application types will require additional forms/ documents to be submitted for further assessment:  

• Assignee’s/ transferee’s (Buyer’s) updated company profile from ACRA 

• NEA’s (DCLD) advisory on Buyer’s usage for Industrial Allocation 

• For Land and Standard Factory customers: A copy of the Buyer’s latest annual report or audited accounts and a full business plan with details of your Buyer’s products/services to support the application 

• For Trusts and Investment Fund Buyers: A copy of the Trust Business Licence/ Capital Markets Services Licence issued by MAS 

• For Real Estate Developer Buyers: Buyer’s track record of property-related development projects in the last 5 years 

• If proposed usage includes Warehousing: Completed LTA Land Use Proposal Form. 

• If proposed usage includes storage of petroleum/ flammable material exceeding SCDF’s stipulated exemption quantities: SCDF approval is needed for storage of petroleum/ flammable material 

• For Waterfront sites: Application form for use of waterfront site.

• For Jurong Island sites: Completed NACWC Form for companies/ industries involving chemicals