Tenants in 26 blocks at Eunos Industrial Estate are being relocated as the Housing Board plans for future redevelopment of the estate.
The Housing Board (HDB) will offer the 399 affected units replacement space in a new high-rise industrial complex in Ang Mo Kio Industrial Park 3, it said on Tuesday.
The 4.7-ha complex in Ang Mo Kio is expected to be completed in mid-2018.
Eligible tenants will be given an goodwill payment of $48,000 per relocated unit to defray relocation costs.
They will also be offered a rent-free fitting-up period of two to six months. Rents for the replacement units will be set at the market rate as of the date the tenant selects the new unit, or as of the date the new tenancy starts, whichever is lower.
The relocation is part of HDB's industrial redevelopment programme (IRP), which was launched in 1997 to "recycle, redevelop and intensify" existing HDB-managed industrial land and to relocate pollutive businesses, HDB said.
This will mark the 14th batch of relocations under the IRP. To date, the HDB has relocated about 3,000 industrial units islandwide to new high-rise industrial complexes.
Completed in 1981, the Eunos Industrial Estate originally housed 1,089 units. Four batches of its tenants have been relocated so far, including the current batch of 399 units.