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 subsidiary proprietors (SPs), 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 of 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.

In response to BT’s queries, an SLA spokesperson said: “On May 15, 2026, SLA received the lease renewal acceptance documents and payment for the lease renewal premium, submitted by the appointed attorney on behalf of all the owners for the proposed lease renewal of 61 Ubi Avenue 2.

“The owners must still complete the necessary follow-up processes, such as the survey of land for the site. SLA will issue the fresh State Lease, which will be from Jul 19, 2026 to Dec 31, 2040, after the owners have completed the follow-up processes.”

Full consensus needed

Tang said: “This is a project we have worked on for more than five years. We are glad for the collective effort of our subsidiary proprietors and the leasing committee, and thankful to SLA for extending the deadline.”

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 noted 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 the payment required.

“As the site at 61 Ubi Ave 2 is a strata-titled car sales centre building (Automobile Megamart), all owners of the strata-titled development must accept the lease renewal offer by the final extended deadline of May 15,” said SLA.

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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.

If the application for lease renewal is approved, 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. Dealers 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.