Revised Subletting Policy for HDB Industrial Properties
From 1 Jun 2015, new and existing tenants of HDB industrial properties will not be allowed to sublet their industrial properties. Tenants with existing approved subletting arrangements will be allowed to renew their subletting agreements up to 31 Dec 2017, to give them time to make business adjustments. The revised subletting policy will better support industrialists in operating their core businesses, and enable more productive use of scarce industrial land in Singapore.
2 HDB manages close to 12,000 industrial properties island-wide, including workshops, warehouses and factories. Majority (about 98%) are rented out on 1-, 2- or 3-year term tenancies. Currently, tenants of HDB industrial properties are allowed to sublet up to 50% of their factory floor space. About 380 tenants, or approximately 3% of the total number of tenants, are currently subletting space in their industrial properties.
3 The main purpose of HDB’s industrial space is to support industrialists in operating their core businesses. To better achieve this intent, HDB will be revising its subletting policy for industrial properties. From 1 Jun 2015, all new and existing tenants will not be allowed to sublet their industrial properties. This revision also seeks to promote more responsible and productive use of scarce industrial land, by encouraging tenants to rent only the amount of space that they need. This change will also align HDB’s subletting policy for industrial properties with that of other government agencies such as JTC Corporation.
4 To ease the transition, tenants with existing approved subletting agreements may renew their subletting agreements up to 31 Dec 2017. Thereafter, they will not be allowed to sublet their properties. 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.
5 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.
“Related companies” refers to: a.Subtenant is wholly-owned by the tenant or vice versa; b. Percentage shareholding relationship (not including common individual directors and shareholders) between the tenant and the subtenant is at least 51%; or c. Tenant and subtenant are 100% owned by the same parent company.
6 HDB industrial tenants can call 1800-866-3077 for further enquiries on the revised policy.