General Terms and Conditions of Lease
Lease of Factory Space
Lease of Industrial Land
Lease of Factory Space
- The lease shall be for an initial duration of 3 years, starting immediately upon handing over of keys of the factory space to the Lessee.
- The lease shall be automatically renewed for further consecutive periods of 3 years unless otherwise expressly determined in writing by either party (Lessor (DBM) /Lessee (Tenant)) at least 3 months before its expiry.
- Every renewal, whether tacit or express, shall be subject ipso facto to an increase of the monthly rent and service charge by such percentage as shall be decided by the Lessor.
- The monthly rent payable shall be based on the prevailing rent rate at the time of occupation of the factory space as decided by the Lessor, and shall increase thereafter, on a yearly basis or at time of each subsequent renewal of the lease, by such percentage as shall decide the Lessor.
- A monthly service charge as decided by the Lessor shall also be payable to recoup the repairs and maintenance costs of the industrial site. The monthly service charge shall increase thereafter, at time of each subsequent renewal of the lease, by such percentage as shall decide the Lessor.
- The monthly rent and service charge shall be payable in advance on the 1st of each month through standing order arrangement with the Lessee’s banker.
- The Lessee shall have to make a deposit equivalent to 3 times the monthly rent payable, upon acceptance of the lease offer and prior to signature of the agreement evidencing the lease. The deposit shall not bear any interest and shall, at time of the termination or cancellation of the lease, be used by the Lessor towards payment for the reinstatement of the premises in its original state if deemed necessary.
- If the monthly rent and service charge are not paid when falling due, they shall bear penalty from the date when due at the rate of 10% p.a.
- The Directors/Office-Bearers of the Lessee (in case of Companies/Societies/Associations/etc..) shall guarantee the payment of the rent, service charge and any other dues under the lease.
- In default of payment of any rent and/or service charge when they become due and/or in complying with any of the conditions of the lease, the Lessor shall have the rights to cancel the lease and resume possession of the premises.
- The Lessee shall (a) keep the premises in good tenantable repair and condition; (b) maintain all interior services such as toilets, refectory and all other such interior facilities in a neat and tidy state and in working condition at all times; (c) be responsible for the proper care, maintenance and repair of all fittings, fixtures, plumbing and sanitary wares on the premises; and (d) maintain the interior yard and the frontage of the premises in a neat and tidy state.
- The Lessor shall carry out any necessary structural repairs to the premises at its costs, as soon as reasonably practicable and at such time convenient to both the Lessee and the Lessor.
Lease of Industrial Land
- The lease shall be for an initial duration of 20 years, starting immediately upon signature of the agreement evidencing the lease by the parties (Lessor (DBM) /Lessee (Tenant)).
- The lease shall be renewable for two further consecutive periods of 20 years each at the option of the Lessee unless otherwise expressly determined in writing by either party at least 3 months before its expiry.
- Every renewal shall be evidenced by an agreement and shall be subject to such conditions and in consideration of such rent as shall decide the Lessor.
- The monthly rent payable shall be based on the prevailing rent rate at the time of signature of the agreement evidencing the lease as decided by the Lessor, and shall increase thereafter, on a yearly basis or every 5 years, by such percentage as shall decide the Lessor.
- The monthly rent shall be payable in advance on the 1st of each month through standing order arrangement with the Lessee’s banker.
- The Lessee shall have to make a deposit equivalent to 3 times the monthly rent payable, upon acceptance of the lease offer and prior to signature of the agreement evidencing the lease. The deposit shall not bear any interest and shall, at time of the termination or cancellation of the lease, be used by the Lessor towards payment for the reinstatement of the land in its original state if deemed necessary.
- If the monthly rent are not paid when falling due, they shall bear penalty from the date when due at the rate of 10% p.a.
- The Directors/Office-Bearers of the Lessee (in case of Companies/Societies/Associations/etc..) shall guarantee the payment of the rent and any other dues under the lease.
- In default of payment of any rent when they become due and/or in complying with any of the conditions of the lease, the Lessor shall have the rights to cancel the lease and resume possession of the land.