Lease for S’pore’s largest used-car hub set to be renewed till 2040 after owners pay $68m

SINGAPORE – The lease for Automobile Megamart in Ubi is set to be renewed until end-2040, after the owners of the eight-storey building paid $68 million by the deadline set by the authorities.

The Singapore Land Authority (SLA) confirmed on the evening of May 18 that it received payment on May 15 from the lawyer appointed by the owners for the lease renewal. The existing lease would lapse on July 18.

Located in the Ubi industrial area near Paya Lebar Air Base, the complex is Singapore’s largest dedicated used-car centre, with 121 showrooms and offices. The occupants are mostly dealers of new and used cars, as well as related businesses such as vehicle leasing and financing.

Following the payment of the lease renewal premium, SLA said it would issue a fresh state lease for the period from July 19, 2026, to Dec 31, 2040, after the owners complete the necessary follow-up processes.

Mr Raymond Tang, chairman of the building’s lease renewal committee, said these include the submission of surveyor reports for the property.

In a phone interview on May 18, Mr Tang said the appointed surveyor has already completed the work and he estimated that the reports will be submitted to the Building and Construction Authority in May. It cost the owners around $150,000 to engage the surveyor.

Mr Tang said that all 76 unit owners will also have to pay stamp duty to the Inland Revenue Authority of Singapore to transfer the strata titles of the property to the individual units.

Similar to the share they contributed to the collective $68 million renewal fee, the total stamp duty amount of $3.4 million will be apportioned based on factors such as the size and location of each unit.

For Mr Tang, each of the two units he owns on the third floor will incur a stamp duty of more than $20,000.

May 15 was the deadline for the owners to pay the premium to renew the lease of the site.

This deadline was set after a final four-week extension following earlier rounds of extensions.

The owners were unable to come to a unanimous agreement at several points in the renewal process, causing the lease renewal offer to lapse once before SLA revised it and issued a second offer.

SLA had been working with the owners of Automobile Megamart since March 2024 on the renewal.

The original 30-year lease for the land was awarded to a group of car dealers in 1996. The building was officially opened in 2000.

Mr Mike Wee, chairman of Automobile Megamart’s management corporation strata title, said plans are in place to refurbish facilities such as the building’s lifts and electrical systems.

Mr Wee, who runs a used-car dealership on the fifth floor, said that before the lease renewal was due, some shop units were left vacant because it was difficult to find tenants willing to sign short-term rental contracts.

With the lease renewal now on track, Mr Wee expects new tenants to come on board.

When The Straits Times visited on May 19, at least four units were being renovated or in the process of getting new signage, suggesting that new car dealerships are moving in.

A check on CommercialGuru, an online commercial and industrial property portal, showed nine showroom units of various sizes and locations at Automobile Megamart listed for rent at between $7,800 and $20,000 each per month.

With the property’s lease on course to be renewed, Mr Tan Wee Yong of MyCar, a car importer and retailer, said he is looking to renovate his first-floor showroom to improve customer experience, as he believes that this will give his business an edge.