SLA - FAQs >> Rental of State Property - Tenancy Matters For Prospective Tenderers

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Rental of State Property

Tenancy Matters For Prospective Tenderers

1.	If the tender bids are below the expected rent, will SLA still award? In evaluating the bids submitted, SLA considers among other factors, the tendered price, concepts, proposed uses, track record and financial health of the bidders.
2.	What criteria does SLA consider when awarding the tender? In evaluating the bids submitted, SLA considers among other factors, the tendered price, concepts, proposed uses, track record and financial health of the bidders.
3.	If an existing tenant has good track record throughout the tenure and puts in the same bid as a new bidder in a fresh tender, will he have advantage over the new bidder? All interested parties, including the existing tenant, are given equal opportunities to bid for the property.
4.	When a party bids for a State property, what is the tenure like? State properties pending long term development are let out for interim uses. The available tenure for each property varies and is determined by the planning authority, depending on the development timeframe for the site. The available tenure is stated explicitly in the tender documents.
5.	What does a tenure of 3+3+3 mean? The tenure of 3+3+3 years means that the tenancy is granted for an initial term of 3 years. Subject to the tenant’s compliance with the terms and conditions in the Tenancy Agreement, the tenancy can potentially be renewed 2 further terms of 3 years each. The Government has the sole discretion on whether or not to offer a renewal and on the terms and conditions to be agreed on.
6.	Will SLA renew a tenant’s tenancy automatically after each term? Generally, SLA will be prepared to consider renewing the tenancy if there have been no breaches to the conditions set out in the Tenancy Agreement. Such renewal will be at the sole discretion of the Government and on the terms and conditions to be agreed on. If the incumbent tenant wishes to renew the tenancy for the second or third term, he has to give SLA not less than 6 months' written notice before the expiration of the existing term.
7.	Is there a rent-free period? Yes, the rent-free period is estimated to be 3 months. Yes, the rent-free period for the first term of tenancy only is estimated to be 3 months. Under the tenancy terms, tenants are required to compensate the State for the rent-free period should they fail to complete the tenancy term as contracted.
8.	Will there be any extension of rent-free period? No. The rent-free period commences from the tenancy commencement date and will expire upon the stipulated period without further extensions.
9.	Will rents increase after a tender is awarded? The rent payable for the first term of the tenancy is based on the rent bidded by the tenant. Where there are further terms for renewal, the rent for the subsequent tenancy terms will be reviewed based on prevailing market rates at the point of renewal.
10.	Can successful bidders demolish existing State property and build new structures from scratch? As in the case of a private property, tenants are generally not allowed to demolish State buildings as the buildings are assets belonging to the landlord, which in this case, is the Government.
11.	Is sub-letting allowed? Residential properties are rented out for the sole use of the tenant and his immediate family members and no sub-letting is allowed. For non-residential properties, sub-letting will have to be evaluated and approved by SLA on a case-by-case basis. The tender documents will indicate the provisions for sub-letting.

Last Update : 01 July 2013


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