When there is :-

1. Outright transfer of tenancy plus improvements to another party (a Sole-Proprietor, Partnership, Limited Liability Partnership or Private Limited Company).
2. Inclusion / Withdrawal of partners / shareholders within firm (where original tenant / partner(s) no longer holds minimum 51% ownership)
3. Change of company name with a change in ACRA Registration number
4. Conversion of legal entity from Private Limited company to sole-proprietorship / partnership / Limited Liability Partnership
5. Conversion of legal entity from Limited Liability Partnership to sole-proprietorship / partnership / Private Limited Company

Eligibility

• Tenant is eligible to apply for assignment provided that HDB has not commenced any legal action against him; all outstanding arrears/charges have been cleared; and no breach, eg unauthorised addition and alteration works, has been committed.
• Assignment of Tenancy of premises allocated under Expansion Scheme is not allowed within 1st 3 years of occupation.

Rent & Benefits

• Rental is revised to prevailing market rent or to existing rent whichever is higher, If New Tenant opts for 1, 2 or 3-year Fresh Term.
• Existing Rent would not be revised if New Tenant opts to take over the Balance Term.
• Rental rebates, relocation benefits eg ex-gratia, etc would not be extended to New Tenant.
• No rent-free 'fitting-up' period is given to New Tenant.

Performance Required

• New Tenant to take over premises based on its existing condition and furnish a Certificate of Compliance for the electrical installations.
• New Tenant to obtain eg NEA's/AVA's/HSA's/MOM's clearance for his trade and/or licences.
• Tenancy Agreement between HDB and New Tenant to be executed. Stamp fees to be borne by New Tenant.

Penalty on Illegal Assignment

• The existing rental would be revised to prevailing market rental (if higher) and backdated to date infringement is detected.
• In addition, a penalty equivalent to one month of existing rent (including SC/CC) is also levied.
• For second time offenders, HDB will recover possession of the premises.

$200 (GST exclusive)

Application Procedure

(Click here for Application form)

When :

1. Tenant rents a portion of his building space to another party - including one that he wholly owns or is related to.

Eligibility

• Subletting in Premises allocated under Expansion Scheme are not allowed within 1st 3 years of occupation

Space Allowed

• Up to 50% of Floor Area allowed for subletting. [Up to 100% allowed for sold factories subject to minimum occupation of 5 years.]
• 60/40 Rule (Under URA ruling, at least 60% of the total gross floor area must be set aside for industrial activities, inclusive of ancillary store/warehouse. The space should be used either by Tenant & sub-tenants. The rest may be used for storage, as an ancillary office or other ancillary purposes. If premises is purpose-built warehouse, industrial activities shall be replaced by warehousing activities.)
• No limit for joint-ventures companies where Tenant has at least 51% stake.
• Occupation by tenants' subcontractors not treated as subletting.

Tenure

• Maximum 3 years, not beyond the term tenancy, renewable

Permitted Sublet Trade

• Use like Office / Retail / Storage are not allowed
• Tenant to ensure that sub-tenant obtains NEA's/AVA's/HSA's/MOM's clearance for his (sub-tenant's) trade prior operation.
• Separate Factory Licence may be required

Sublet Consent Fee

• Payable for all subletting in rental or sold properties
• Fee Computation :- 3% of Sublet Rent pa x Shares not owned by Tenant, subject to minimum sublet consent fee of $500 p.a.(GST exlcusive).
• 50% discount on sublet consent fee, subject to a maximum $3,000 p.a. to 1st time application, subject to following conditions :-
  1. Complete application ie NEA/Competent Authorities' clearances received before commencement of subletting
  2. Sublet consent fee paid to HDB within 14 days from subletting commencement date.
  3. Sublet fee after discount is subject to a minimum of $500 p.a.(GST exlcusive).
• A one-time administrative fee, fixed at $500 p.a.(GST exlcusive), for subletting to wholly-owned or parent company is imposed. Renewal of subletting is not required.

Penalty

• Interest at 8.5% pa payable for late renewals / late payment of consent fee
• For unauthorised subletting,
  1. 100% of sublet consent fee backdated to detection of infringement (not from date of HDB's approval) would be recovered.
  2. In addition, a penalty fee based on one-month existing rent (includes SC/CC) would be imposed.
  3. For subsequent offence, in addition to above, rent would be revised to market rent, if higher.

Consent Fee subject to minimum $500 p.a. (GST exclusive)

Application Procedure

(Click here for application form)

When there is :-

1. Outright Transfer / Inclusion / Withdrawal of partner(s) / shareholder(s) within firm /company involving immediate family members viz parents, siblings, children, or holding co /subsidiary.
2. Inclusion resulting in conversion of sole-proprietorship to partnership / Private Limited company / Limited Liability Partnership involving immediate family members viz. parents, siblings, children, or holding co / subsidiary.

Rent & Benefits

• Rent shall not be adjusted
• There is no control on retention of minimum shareholding.

Performance Required

• Execution of a new Tenancy Agreement or Supplementary Agreement for the balance term and payment of stamp fee (where there is change in business mode)(Click here to see IRAS rebate in stamp duty)

Important Note:-

If Tenant is eligible for compensation or ex-gratia or relocation benefits whatsover in the event that the premises are affected by relocation, such eligibility shall automatically be withdrawn without notice in the event that a non-Singaporean takes over or a non-Singaporean partner / shareholder has been included.

$100 (GST exclusive)

Application Procedure

(Click here for application form)

When there is :-

1. Conversion of sole-proprietorship to Private Limited company involving no change to original tenant.
2. Conversion of partnership to Private Limited company or to Limited Liability Partnership involving no change to original partners.

Rent & Benefits

• Rent shall not be adjusted
• New Entity to take over the remaining term of tenancy

Performance Required

• Execution of a new Tenancy Agreement and payment of stamp fee (Click here to see IRAS rebate in stamp duty)

$100 (GST exclusive)

Application Procedure

(Click here for application form)

When there is :-

1. Inclusion / Withdrawal of partner(s) / shareholder(s) within firm/company (not involving next-of-kins and where original tenant / partner(s) still holds minimum 51% ownership.)

[Withdrawal of shareholder / partner resulting in business mode no longer being a legal entity eg from a Pte Ltd Co / Ltd Liability Partnership to a Sole Proprietorship will be treated as Assignment.]

Rent & Benefits

• Rent shall not be adjusted
• Original tenant / partner(s) / shareholder(s) to retain minimum 51% ownership

Performance Required

• Execution of a fresh Tenancy Agreement or Supplementary Agreement for the balance term and payment of stamp fee (where there is change in business mode)(Click here to see IRAS rebate in stamp duty)

Important Note:-

If Tenant is eligible for compensation or ex-gratia or relocation benefits whatsover in the event that the premises are affected by relocation, such eligibility shall automatically be withdrawn without notice in the event that the original tenant's / partner(s)'s / shareholder(s)'s shareholding is reduced to less than 51% or a non-Singaporean partner / shareholder has been included.

$100 (GST exclusive)

Application Procedure

(Click here for application form)

When there is :-

1. Change of Name of Private Limited company, without change in Company's Registration No and any other changes

Rent & Benefits

• Rent shall not be adjusted

Performance Required

• Tenant to forward HDB a copy of the Certificate of Change of Name of Company.

Nil

Application Procedure

(Click here for application form)

When :-

1. Tenant wishes to carry out a new or additional Trade, without any other changes

• Rent shall not be adjusted

Performance Required

• Tenant has to comply with the regulations of competent authorities (eg NEA/AVA/HSA/MOM) for new / additional trade

$100 (GST exclusive)

Application Procedure

(Click here for application form)