New and existing tenants will not be allowed to sublet their industrial properties from Jun 1 this year, the Housing and Development Board said in a press release on Monday (Mar 30).
However, to facilitate business adjustments, HDB said tenants with existing approved subletting arrangements will be allowed to renew their subletting agreements until Dec 31, 2017.
According to the HDB website, some of the industrial properties include the Ang Mo Kio Industrial Park, Defu Industrial Estate and Pasir Panjang Wholesale Centre.
The revised policy is to “promote more responsible and productive use of scarce industrial land in Singapore”, HDB said. Tenants are encouraged to rent only the amount of space they need.
HDB also said tenants with excess space are encouraged to “right-size” their factories to smaller units, and can renew their tenancy with the board for a lower quantum at the end of their current term.
Currently, tenants are allowed to sublet up to 50 per cent of their factory floor space. About 380 tenants, or approximately 3 per cent of the total number of tenants, are currently subletting space in their industrial properties, HDB said.
The board added that tenants who are currently subletting their premises to their wholly-owned subsidiaries or related companies will not be affected by this policy revision, and may continue their subletting arrangement. For further enquiries on the revised policy, tenants may call HDB at 1800 866-3077.
Source : Channel NewsAsia – 30 Mar 2015