Owners of the 76 units at Automobile Megamart, the largest used-car hub in Singapore, are faced with a SGD68 million (US$53 million) bill, due by May 15, to extend the complex’s lease until 2040. However, unanimous agreement between all owners is required, and it remains uncertain whether this will be reached.
Located within the Ubi industrial estate, close to the Paya Lebar Air Base, Automobile Megamart is the country’s largest dedicated used-car center. Spanning eight stories, the complex features 121 showrooms and offices.
Tenants of the hub include car dealerships offering both new and used vehicles, as well as businesses offering related services such as car financing and leasing.
The land lease for the complex was initially acquired by a consortium of car dealers in 1996 for a 30-year term. The lease is set to expire this year, and if a unanimous decision to extend it is not made by the tenants, they will be required to vacate by July 18.
This looming deadline comes after a final four-week extension was granted by the Singapore Land Authority (SLA), following several previous extensions.
During the renewal negotiations, a unanimous decision could not be reached, causing the initial renewal offer to lapse. The SLA then revised the terms and issued a second offer.
The renewal premium will be divided among unit owners based on variables such as the size and location of their respective units.
Lease renewal committee chairman Raymond Tang expressed gratitude to the SLA for the lease extension and extra time for payment, but highlighted the uncertainty of the situation, cautioning that the renewal could fall through if even a single owner fails to make their full payment.
Neo Tiam Ting, director of Think One Group, which owns four units in the complex, revealed that some older owners have chosen to sell their units, as they do not plan to continue in the trade for the long term.
Henry Heng of Prime Car Traders praised Automobile Megamart as being the only “proper” used-car center in Singapore, pointing to its tenant mix, convenient parking, and display facilities. Despite acknowledging the uncertainty, he expressed confidence that the lease renewal would go through, stating that he has no backup plan if it doesn’t.
The SLA indicated that it is open to considering extending the tenancy for the locations 7 Ubi Close, current home to Alpine Group and a BYD showroom operated by Harmony Auto, both of which have been rented since 2025.
Why does the lease renewal at Automobile Megamart require unanimous agreement from all tenants?
The requirement for unanimous agreement is likely due to the terms of the initial leasing contract, which can vary based on multiple factors such as the nature of the property and the lease duration.
What will happen to the tenants of Automobile Megamart if the lease renewal does not go through?
If the lease is not renewed, all tenants will have to vacate the premises by July 18, which could potentially disrupt their business operations.
What factors determine how the renewal premium is divided among the unit owners?
The division of the renewal premium among unit owners is typically based on factors such as the size and location of each unit within the complex.
