No more subletting of HDB industrial properties from June
NEW and existing tenants of Housing Board industrial properties will not be allowed to sublet their properties from June 1, HDB said yesterday.
Tenants with existing approved subletting arrangements will be allowed to renew their subletting agreements up to Dec 31, 2017, to give them time to make business adjustments.
"The revised subletting policy will better support industrialists in operating their core businesses," HDB said.
"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."
The change will also align HDB's subletting policy for industrial properties 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 HDB.
HDB manages close to 12,000 industrial properties islandwide, including workshops, warehouses and factories.
About 98 per cent are rented out on one-, two- or three-year term tenancies.
Currently, tenants of HDB industrial properties are allowed to sublet up to 50 per cent of their factory floor space.
About 380 tenants, or about 3 per cent of the total number of tenants, are subletting space in their industrial properties.
THE BUSINESS TIMES, THE STRAITS TIMES