Industrial Redevelopment Programme (IRP)

Background

Launched since Feb 97, the IRP focuses on the relocation demand generated by rehousing HDB's tenants who are mainly the Small and Medium Enterprises.

The objectives of IRP are mainly to free up land for higher intensity development. In view of the growing environmental concerns, IRP is also programmed to relocate tenants in pollutive trades to mitigate pollution discharged into the new water catchment areas such as the Marina Barrage, Punggol & Serangoon reservoirs. Affected tenants will relocate to new industrial premises which are designed with better design features and facilities so as to meet the tenants' operational needs such as higher electrical loading and ample loading/unloading facilities. It will also cluster tenants from closely related trades within the same industrial development for better synergy. Examples include high-rise motor workshop developments such as AMK AutoPoint (Ang Mo Kio) and food developments such as Shimei East Kitchen (Bedok).

To date, a total of 10 relocation batches involving about 3,000 over units had been announced for relocation and 14 new high-rise developments built to meet the above objectives of IRP.

Relocation Benefits

Replacement Unit
Existing tenants of industrial premises under the HDB's Industrial Redevelopment Programme who satisfy HDB's eligibility conditions may rent on fixed term tenancy a replacement unit (RU) in an industrial development to be constructed by HDB. Tenants are required to settle all rental arrears and regularise all tenancy infringements prior to the selection exercise, failing which he is not allowed to book a unit.

Rent Concession
Eligible Singapore Citizens renting the RU will be given up to 6-months rent free concession period (2 months fixed, additional 4 months pro-rated according to the share-holding of Singapore Citizens). The Rent payable for the RU shall be based on the lower of its Market Rent at selection date or tenancy commencement date i.e. it will not be higher than market rent at selection. If the rental rate (psm) of the premises affected by the relocation exercise (hereby called "affected premises") is lower, it can be carried forward for the balance term to the RU.
[With effect from 2007, the Option to Purchase the RU will no longer be offered.]

Ex-Gratia Payment
An ex-gratia is payable after vacant possession had been obtained by HDB. Ex-gratia is not payable for
(a) Tenderers on/after 1 Jan 98;
(b) Licensees with premises on Temporary Occupation Licence (TOL);
(c) Assignment on/after 1 Jun 99;
(d) Companies with a change in majority shareholders from original letting on/after 1 Jun 99;
(e) Businesses with foreign ownership, either partial or full, as at the Date of Announcement;
(f) Tenants whose premises are under legal action and being recovered by HDB; or
(g) Tenants who have served notice to quit on or before the announcement date of the relocation exercise.

Ex-Gratia is a goodwill payment and subject to changes at the sole discretion of HDB without any prior notification. Tenants are advised to settle all arrears before they will be considered for eligibility.

Selection

Selection of the RU is based on the balloted queue number. RUs are allocated based on one-for-one. Where the shortfall in the area of the RU exceeds 10% of the affected premises, the tenant is allowed to select an additional unit subject to availability.

Mutual exchange of RU subject to HDB's consent is allowed prior to obtaining TOP. Mutual exchange after the execution of Agreement will require execution of fresh sets of Agreements. Both parties will have to bear additional stamp fees and legal costs.

Booking Fee

Upon selection, tenants are required to pay a non-refundable booking fee of S$3,000/-.

Approved Use

Under the Planning guidelines (administered by the URA), the approved uses and quantum are as follows:

Development	Use
Factory	Minimum 60% of the floor area for production, manufacturing, assembly, processing, repair, servicing or workshop and ancillary store. Maximum 40% of the floor area for other ancillary uses (eg. office, showroom)
Warehouse	Minimum 60% of the floor area for warehousing. Maximum 40% of the floor area for ancillary uses (eg. office, showroom)

Tenants are required to seek on their own from the various respective Government Authorities (eg. National Environment Agency [NEA], Agri-Food & Veterinary Authority [AVA], Singapore Civil Defence Force [SCDF], Ministry of Manpower [MOM], etc) the required approvals and licences necessary, depending on the types of trades to be carried out before operating at the new premises (RU).

Others

Assignment of tenancy of the affected premises after HDB’s announcement is allowed. However, the ex-gratia eligibility, if any, is not portable. The Assignee would not be granted the ex-gratia. However, if the Assignee takes up a RU, he would still be granted the 6-month rent-free period for the RU. The ex-gratia would also be withdrawn from the Assignor on assignment. [Assignment application fee is $200/- plus GST; Subletting consent fee is based on 3% pa of sublet rent, subject to min $500/- pa plus GST.]

10.

Tenants with units in other industrial estates, but not due for relocation, can be allowed to consolidate their operation needs and select additional unit(s) in the same new development, subject availability, and conditions as follows:

No ex-gratia payment will be paid for those units not affected relocation;
No rental concession will be given to the additional unit(s);
Subletting and Assignment of these additional RUs would not be allowed in the first three years of occupation; and
Upon taking possession of the RUs, the tenants are required to terminate the existing tenancies and return the units to HDB. Assignment of the existing tenancies would not be considered.

11.

Except for the situation mentioned under item 10 above, there is no restriction period for subletting and assignment in RU subject to prior consent from HDB and payment of fees.

12.

Termination of the tenancy of the RU within the rent-free period would result in withdrawal of the rent-free period equivalent to an amount of $3,000/-.

The information contained in this section is current at the time of printing. It is subject to change as may be required by the relevant authorities and for at the sole discretion of HDB.