Automobile Megamart Lease Renewed Until 2040 After $68 Million Payment to SLA

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

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

The 15 May 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.

Mr Raymond Tang, chairman of the building’s lease renewal committee, 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.

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 each contributed to the collective $68 million renewal fee, the total stamp duty amount of $3.24 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.

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. The occupants are mostly dealers of new and used cars, as well as related businesses such as vehicle leasing and financing.

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 system. He added 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 19 May, 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 Tong 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.

The Straits Times, 20 May 2026