Several nurseries in Yishun face uncertain future as lease expiry nears

Four of the nine nursery and farm tenants in Bah Soon Pah Road in Yishun have only a few days left to find new homes, as their tenancies expire at the end of the year.

The land that they sit on has been earmarked for residential development from next year.

Some may close permanently after more than 30 years there, citing problems in finding suitable plots that are big enough and that are at locations that are more accessible to customers.

The other five tenants have managed to secure new plots. But they are hoping for more time to get contractors in to move their supplies and prepare the land to return it to the authorities.

This is despite the Singapore Land Authority (SLA) informing the tenants in Bah Soon Pah Road, which is near the Seletar and Jalan Kayu districts, in July 2017 of the lease expiry.

The nine tenants comprise an organic farm, and wholesale and retail nurseries. The farm and three nurseries have not found new locations.

The space that most of them occupy ranges from 5,000 sq m to 32,000 sq m, which is equivalent to 0.7 to 4.5 football fields.

SLA said that for the past 4½ years, various agencies "have been engaging the tenants regularly to encourage them to secure replacement sites before their tenancies expire" on Dec 31 this year.

"Due to the urgent need to provide for the housing needs of Singaporeans, the tenants will be required to return their premises to the Government when the tenancy expires, so that the site can be developed for public housing," it explained.

SLA, the National Parks Board and the Singapore Food Agency have launched various sites for tender since 2016, and affected tenants that are keen to continue their business can bid for a plot.

SLA added: "Tenants have also been advised that they can source rental of other suitable spaces such as shops, warehouses or industrial units."

But some tenants pointed out that many of the plots available in tender exercises were either unsuitable for plant nursery activities or were too far from the heartland where most of their customers are.

Ban Nee Chen Nursery, for instance, has not secured a new plot yet, said Mr Teng Kai Wei, its corporate development lead.

"We have tried seeking commercial properties but, as the upkeep of plants requires natural lighting, we have not been able to find a strategic location that is able to house them," he added.

He said that relocating may put off heartland residents from getting their garden supplies from the nursery.

Without a new place to move to, it would also not have the capacity to provide sufficient supplies for its retail outlets.

"In the event that we are not able to sustain our business model, it will dishearten us to let go of our employees who have been with us for many years," said Mr Teng. The nursery employs more than 120 Singaporeans.

Some tenants that are fortunate enough to secure a new land plot are facing unexpected delays, with the Covid-19 pandemic causing issues such as labour shortage.

Mr Jesse Chua, 35, business development and operations manager at nursery World Farm, said it would need about a year to move to its new location in Sungei Tengah and return the land to the authorities.

"As a result of the manpower crunch, the contractors we spoke to were not able to commence work before Chinese New Year due to ongoing projects," he said.

"Furthermore, due to safe management measures, construction workers can no longer go to multiple job sites on the same day."

He added that the perishable nature of the nursery's products makes it tough to rent warehouses temporarily while it waits for its new home to be ready.

With time running out, some said they may have to end their businesses.

Ms Nancy Ang, 57, manager at Pioneer Garden Services, said her nursery found a suitable land plot in June this year. She had been looking for a plot since 2018.

But the tender results will be announced only next month.

"We will have no choice but to wind up our business of over 30 years if a time extension is not granted," said Ms Ang, adding that an extension of between 10 and 12 months would be needed to relocate and engage contractors to return the plot.

SLA said some tenants have asked for more time - till the end of Chinese New Year - to complete their reinstatement works due to manpower and relocation site issues. It added that their request for extension is being reviewed and will be responded to soon.