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HDB on Monday (30 March) announced the revision of its policies on industrial properties where its new and existing tenants will not be allowed to sublet their properties.
Tenants with existing approved subletting arrangements will be allowed to renew their subletting leases up to 31 Dec 2017, to give them time to make business adjustments.
Currently, HDB industrial properties tenants are allowed to sublet up to 50 percent of their factory floor space.
According to HDB, the revised subletting policy will better support industrialists in operating their core businesses, and enable more productive use of scarce industrial land in Singapore.
“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,” noted HDB, highlighting that the main purpose of its industrial space is to support industrialists in operating their core businesses.
Close to 12,000 industrial properties island-wide – including workshops, warehouses and factories – are being managed by the housing board and about 98 percent are being sublet on a one-, two- or three-year term tenancies.
Image: one of HDB’s industrial properties.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg.
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