Car dealers submit S$68 million for renewal of Automobile Megamart’s lease

[SINGAPORE] Auto dealers operating at Automobile Megamart in Ubi are a step closer to securing a lifeline for their trade, after submitting a payment of S$68 million to the Singapore Land Authority (SLA) to renew the lease for the site.Raymond Tang, chairman of the lease renewal committee representing a collective group of sole proprietors, told The Business Times that the combined sum of S$68 million along with necessary documents had been submitted to SLA in the early afternoon on Friday (May 15), ahead of the deadline.The deadline – 6 pm on May 15 – was the final extension given by SLA for the lease renewal. The lease is set to expire on Jul 18.“This is a project we have worked on for more than five years. We are glad for the collective effort of our sole proprietors (SPs) and the leasing committee, and thankful to SLA for extending the deadline,” said Tang.The process has not been straightforward, as owners had previously been unable to come to an agreement. SLA had also issued multiple renewal offers, which lapsed.Tang said that obtaining consensus on renewal terms had not been easy as it required 100 per cent agreement from all SPs, and the process would fail if even one of them failed to make payment required.Navigate Asia ina new global orderGet the insights delivered to your inbox.The S$68 million cost was split among SPs, with size of premises owned and location among factors that were considered.The committee represents more than 70 SPs with around 120 showrooms and offices at Automobile Megamart, which is located at 61 Ubi Ave 2.If approved by the authority, the site’s lease will be extended until 2040. The eight-storey building was opened in 2000 and is the largest centre dedicated to used-cars in the Republic.SEE ALSOTroubled platform UCars founded by group of dealers wound up on S$4 million debt3 to be charged in Singapore over use of de-registered vehicles COEs for large cars up 4.3% at S$126,236, mainstream cars near S$125,000Dealers operating on the premises include Car Times (now part of the Carsome group), distributor of GAC Aion and Proton cars Vincar, Prime Cars and Jack Cars.Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.