SINGAPORE – From June 1 this year(2015), tenants of Housing Board industrial properties will no longer be able to sublet them. About 380 industrial tenants are currently subletting part of their space.
Those with existing approved subletting arrangements will be allowed to renew these arrangements up to Dec 31, 2017 to give them time to “make business adjustments”, the HDB said in a statement on Monday.
“The revised subletting policy will better support industrialists in operating their core businesses, and enable more productive use of scarce industrial land in Singapore,” said the HDB. The change will encourage tenants to rent only as much space as they need.
The HDB manages almost 12,000 industrial properties, including workshops, warehouses and factories. Of these, 98 per cent are rented out on one-, two- or three-year tenancies.
Currently, such tenants are allowed to sublet up to 50 per cent of their factory floor space. From June 1, they will not be able to do so. This change aligns HDB’s industrial property subletting policy with that of other government agencies such as JTC Corporation.
“Tenants with excess space are encouraged to right-size their factories to smaller units, and can renew their tenancy with HDB for a lower quantum at the end of their current term,” said the HDB.
Tenants which are currently subletting their premises to wholly-owned subsidiaries or related companies will not be affected by the change and can continue their current arrangement.
HDB industrial tenants can call 1800-866-3077 if they have enquiries on the change.
BY JANICE HENG