SMRT-UOB partnership lets retail tenants convert rental deposits into bank guarantees

[SINGAPORE] Businesses operating in Stellar Lifestyle-managed retail spaces can now convert their cash security deposits into UOB-issued banker’s guarantees, potentially freeing up the equivalent of three months’ rent to support cash flow.

The initiative will apply to new and re-contracting tenants, SMRT and UOB said in a joint press statement on Tuesday (Nov 25), following the signing of a memorandum of understanding (MOU) to “elevate the commuter experience by transforming train stations into vibrant retail hubs”.

SMRT said the scheme is already in effect.

Stellar Lifestyle, SMRT’s business arm, manages about 800 retail spaces across the rail network, which serves more than two million commuters daily, and was described in the statement as a “vital platform for local entrepreneurs”.

Beyond the banker’s guarantees, the partnership will also give tenants access to UOB BizSmart – a suite of digital tools designed to simplify operations and boost productivity by streamlining functions such as accounting, human resources and digital marketing.

The statement added that tenants will receive guidance from UOB’s digital advisers, who will offer complimentary consultations to support their digital transformation needs. Some BizSmart services will also be provided for free or at discounted rates.

“This initiative aligns with Singapore’s national SME (small and medium-sized enterprise) digitalisation agenda, helping small and medium businesses strengthen resilience, adopt technology and remain competitive amid evolving retail and consumer trends,” the statement read. 

Aside from deposit flexibility and digital tools, the MOU also spans commuter experience enhancements, transport-service offerings and supply-chain support. 

Both SMRT and UOB will work to improve in-station retail through marketing tie-ups and new technologies introduced under the tech accelerator Stellarate Innovation Programme.

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The partnership will also extend to SMRT’s subsidiary Strides, exploring areas such as limousine and taxi services for UOB cardholders, cross-border transport options, and preferential-rate auto loans from UOB for customers purchasing vehicles through the Strides network.

On the enterprise front, UOB will explore supply-chain financing solutions for SMRT vendors and provide sustainability-linked advisory frameworks to support their environmental, social and governance transition and regional growth plans.

SMRT chairman Seah Moon Ming said in a speech during the MOU signing ceremony that Stellar Lifestyle “remains deeply committed to enabling the success of businesses operating within our network”, and that its partnership with UOB will “make a real difference” due to the bank’s financial strength and experience.