Table 2.1: Revisions to JTC’s Subletting Policy
Affected Parties Previous Policy
Revision with effect from
1 October 2014
End-user lessees
Can sublet up to 50% of GFA
per allocation upon Temporary
Occupation Permit (“TOP”) to
non-related companies
Can sublet up to 50% of GFA per
allocation to non-related companies
within 5 years after obtaining TOP,
and up to 30% thereafter
3
rd
-party facility
provider
- Can sublet up to 50% of GFA
per allocation to non-anchor
subtenants
- Must sublet at least 50% of
GFA per allocation to anchor
subtenants
1
- Can sublet up to 50% of GFA per
allocation to non anchor subtenants
within 5 years after obtaining TOP,
and up to 30% thereafter
- Must sublet at least 70% of GFA
per allocation to anchor subtenants
No minimum occupation period for
subsequent anchor subtenants
Minimum occupation period of
3 years for subsequent anchor
subtenants
Tenants
Can sublet up to 50% of GFA to
non-related companies
Not allowed to sublet
Source: JTC, DTZ Consulting & Research, February 2015
Revised guidelines for supporting uses in industrial developments
The Urban Redevelopment Authority (“URA”) reviewed the allowable supporting uses in industrial
developments, which are within the 40% ancillary component. The revisions, which are effective from
24 November 2014, give industrial developers more flexibility e.g., selected commercial uses such
as clinics, banking hall/ATMs and gyms are allowed in selected outlying industrial estates, subject
to certain conditions.
Proposed changes to the regulatory framework for REITs
The MAS launched a consultation paper in October 2014 for public feedback on their proposed
enhancements to the regulatory regime governing REITs and REIT managers. Proposed changes
were focused on enhancing the transparency and corporate governance of the REIT market and
mainly revolve around creating more stringent disclosure standards and providing REITs with more
operational flexibility.
3.0
PRIVATE FACTORY SPACE
3.1 Supply, Demand and Occupancy
Factory supply was relatively ample in 2014, similar to that in 2013
Total private factory stock has been growing at a relatively fast pace over the past two years, amid the
government’s plan to ensure that there is sufficient supply for businesses. Private factory stock grew by
4.2% (12.7 million sq ft) in 2014 from 302.3 million sq ft in 2013 to 314.9 million sq ft, higher compared
with the 4.0% (11.6 million sq ft) growth in 2013.
Most of the multiple-user factories completed in 2014 were strata-titled for sale and there were only
a few that were for lease only e.g., Aperia. Several major single-user factories and business park
developments catering to high-tech companies e.g., Microsoft, Hewlett-Packard and Seagate were
also completed in 2014.
INDEPENDENT MARKET STUDY
1
JTC defines an anchor subtenant as a company that satisfies JTC’s assessment on value-added, remuneration per worker and employee
profile and occupies at least 1,500 sq m (16,146 sq ft) of GFA.
SABANA REIT
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ANNUAL REPORT 2014
26
