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Rental of State Property

Tenancy Matters For Existing Tenants

1.	Why must a State property be put up for tender when the current tenancy expires? Why are existing tenants not allowed to stay on? State properties pending long term development are let out for interim uses for a specified tenure. The available tenure for each property varies and is determined by the planning authority, depending on the development timeframe for the site. Prior to expiry of an existing tenancy, SLA will consult the planning authority on whether further interim use of the State property can be supported. Where it can be supported, it is only fair that an open tender be called among all interested parties to decide on the allocation. The existing tenant is welcome to participate in the tender.
2.	Why is a tender launched even before the expiry of the existing tenancy? This is to allow all interested parties, including the existing tenant, an equal opportunity to bid for the property. We are mindful of the possible disruption to the existing tenant’s operations and can work with the tenant to arrange to conduct an early tender to minimise any inconvenience. The tenant can thus continue to enjoy the seamless use of the State property if he decides to participate and is successful in the tender. Conversely, he will have sufficient time to prepare for the relocation of his operations upon expiry of his tenancy if he is unsuccessful.
3.	Are there any exceptions for State properties to be renewed directly to existing tenants? By default, to ensure fairness and transparency, an open tender has to be called when allocating vacant State properties. In exceptional situations, direct renewals for existing tenants will require a waiver of competition (WOC) which has to be formally approved by the Tender Board.
4.	In the event that the existing tenant cannot stay on, when do they need to reinstate the property? We will generally inform the tenant of our reinstatement requirements 6 months prior to the expiry of their tenancy. For cases with shorter tenures, we will inform them earlier to ensure that the tenant has sufficient time to reinstate and prepare for the handover of the property upon the expiry of the tenancy.
5.	If the existing tenant is unable to stay on, will SLA help in the relocation of the tenant to another available site? At the expiry of the contracted term, the existing tenant will have to vacate and deliver vacant possession of the property. If the tenant is keen to tender for another State property, SLA can include him in our mailing list for upcoming tenders so that he can participate in them.
6.	Will SLA speak to the successful tenderer who wins the tender to see if they are able to take in existing tenant who did not win the bid? The agreement between the successful tenderer and its prospective sub-tenant is privy to the parties. Once the parties have reached an agreement, the successful tenderer can seek SLA’s approval prior to subletting the property.

Last Update : 01 July 2013


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