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Tag: lease

  • Singapore’s Top Used-Car Hub Faces Uncertainty: Dealers Scramble to Raise $53M for Lease Extension

    Singapore’s Top Used-Car Hub Faces Uncertainty: Dealers Scramble to Raise $53M for Lease Extension

    Owners of the 76 units at Automobile Megamart, the largest used-car hub in Singapore, are faced with a SGD68 million (US$53 million) bill, due by May 15, to extend the complex’s lease until 2040. However, unanimous agreement between all owners is required, and it remains uncertain whether this will be reached.

    Automobile Megamart: A Prime Location

    Located within the Ubi industrial estate, close to the Paya Lebar Air Base, Automobile Megamart is the country’s largest dedicated used-car center. Spanning eight stories, the complex features 121 showrooms and offices.

    Tenants of the hub include car dealerships offering both new and used vehicles, as well as businesses offering related services such as car financing and leasing.

    The Lease Extension Dilemma

    The land lease for the complex was initially acquired by a consortium of car dealers in 1996 for a 30-year term. The lease is set to expire this year, and if a unanimous decision to extend it is not made by the tenants, they will be required to vacate by July 18.

    This looming deadline comes after a final four-week extension was granted by the Singapore Land Authority (SLA), following several previous extensions.

    During the renewal negotiations, a unanimous decision could not be reached, causing the initial renewal offer to lapse. The SLA then revised the terms and issued a second offer.

    The renewal premium will be divided among unit owners based on variables such as the size and location of their respective units.

    Stakeholder Sentiments

    Lease renewal committee chairman Raymond Tang expressed gratitude to the SLA for the lease extension and extra time for payment, but highlighted the uncertainty of the situation, cautioning that the renewal could fall through if even a single owner fails to make their full payment.

    Neo Tiam Ting, director of Think One Group, which owns four units in the complex, revealed that some older owners have chosen to sell their units, as they do not plan to continue in the trade for the long term.

    Henry Heng of Prime Car Traders praised Automobile Megamart as being the only “proper” used-car center in Singapore, pointing to its tenant mix, convenient parking, and display facilities. Despite acknowledging the uncertainty, he expressed confidence that the lease renewal would go through, stating that he has no backup plan if it doesn’t.

    Future Possibilities

    The SLA indicated that it is open to considering extending the tenancy for the locations 7 Ubi Close, current home to Alpine Group and a BYD showroom operated by Harmony Auto, both of which have been rented since 2025.

    Questions & Answers

    Why does the lease renewal at Automobile Megamart require unanimous agreement from all tenants?
    The requirement for unanimous agreement is likely due to the terms of the initial leasing contract, which can vary based on multiple factors such as the nature of the property and the lease duration.

    What will happen to the tenants of Automobile Megamart if the lease renewal does not go through?
    If the lease is not renewed, all tenants will have to vacate the premises by July 18, which could potentially disrupt their business operations.

    What factors determine how the renewal premium is divided among the unit owners?
    The division of the renewal premium among unit owners is typically based on factors such as the size and location of each unit within the complex.

  • DBS Plans to Take Lion’s Share of Used-Car Loans

    DBS Plans to Take Lion’s Share of Used-Car Loans

    DBS has doubled its used-car loan market share, space traditionally dominated by lenders like Hong Leong Finance and Maybank. It hopes to grab 80 percent of used-car loans taking place online by 2021.

    The bank’s decision to focus on the used-car segment came about two years ago, partly due to regulatory changes as well as expectations of decreasing certificates of entitlement (COEs) over time.

    «With the COE quota reducing, the argument is that the premium could possibly go up, but we have not seen it yet as it’s too early to tell,» said Nelson Neo, head of new business for DBS’ deposits and secured lending division.

    «So what we see is really the potential, where consumers will continue to buy used cars, so that’s why we decided to intensify our focus around used cars,» added Neo, who plans to plans to rev up growth in used-car loans by 20 percent.

    Prior to 2018, used-car loans made up 10 percent of the bank’s auto loans, with new-car loans accounting for the rest. Now that used-car loans make up 20 percent, DBS is aiming for 80 percent of used-car loans taking place online by 2021.

    The rapid expansion was a combination of competitive pricing by offering one of the lowest rates in town, stronger partnerships with dealers, and enhanced digital capabilities that allow car owners to complete a loan application online, Neo said. Its interest rates for used cars are similar to new cars at about 2.28 percent.

    Two years ago, used-car loan rates were higher than that of new cars, but they have since fallen to either on par or even lower, depending on promotions.

    Aside from its new car pricing strategy, it is the bank’s data and digital capabilities that have been a game-changer.

    Last October, DBS fully digitized its sign-ups, allowing customers to apply online either through the national data repository MyInfo or DBS’ digital banking platform.

  • Honda Cars India Partners With Tranzlease For Smart Auto Loan Solutions

    Honda Cars India Partners With Tranzlease For Smart Auto Loan Solutions

    In a bid to make its cars more attainable, Honda Cars India has tied up with TranzLease to offer ‘Smart EMI’ auto finance solutions to its customers. The company will be leasing its cars via TranzLease and offer customized EMI packages that not only include the cost of the vehicle but also registration, insurance and maintenance requirements of the car during the financing period. The company says that Smart EMIs are much lower than the standard EMIs that customers opt for via the standard banking network. Customers will have the option to lease the car or return it at the end of the tenure or retain the car by paying the balance amount to the company. In addition, Smart EMI guarantees a high resale value on the vehicle.

    Speaking about the innovative auto finance solution, Rajesh Goel, Senior Vice President and Director, Marketing & Sales, Honda Cars India Ltd said, “Honda is committed to providing innovative ownership solutions with evolving customer preferences. The first of its kind SMART EMI option now makes it easier and convenient for the consumer to enjoy the Honda range of cars in a unique financing option.”

    Anindya Chakraborty, MD & CEO, TranzLease said, “In today’s age where consumers want a car but uneasy about the associated hassles, risks, cost of ownership, Smart EMI comes as a solution that allows the love of car without the chaos – Smart EMI blends the best features of auto loan, auto lease and subscription model to create a true fit for the Indian car buyer.”

    Initially, the service will be offered to customers in Delhi-NCR and Mumbai and will be later made available in Bengaluru, Pune, Hyderabad and Chennai. The Smart EMI plan can be availed at any of the Honda dealerships in the cities, and based on the response it will be rolled out pan India at a later stage. Post-delivery of the car, Smart EMI will have a personalized car portal for customers to manage the entire car life-cycle during the leasing period.

    Smart EMI also provides protection from risk arising out of insurance tariff fluctuations, unforeseen maintenance costs and fluctuation in the resale value of cars. While the payment solution is innovative for cars, Bangalore-based start-up OTO Capital introduced something similar earlier this year that promise 30 percent lower EMIs when on a vehicle when compared to that from a bank. Much like TranzLease, OTO too offers the option for complete ownership or to return the vehicle at the end of the tenure.

  • UBS Signs for New Office Lease in Singapore

    UBS Signs for New Office Lease in Singapore

    UBS will move to 9 Penang Road, where the firm will take up all eight floors of office space at the redeveloped Park Mall building.

    UBS Singapore has signed a lease to take up all the office space of the redeveloped Park Mall building at 9 Penang Road, developer SingHaiyi Group and its joint venture (JV) partners Suntec Reit and Haiyi Holdings announced on Wednesday in a press release.

    The firm, which was mulling over a move to consolidate its One Raffles Quay and Suntec City offices in Singapore, will occupy 381,000 square feet of office space across two towers and eight floors at the development, which is expected to be completed by the end of the year. UBS will relocate there in the second half of 2020.

    The 10-storey grade A office building located at the gateway to the Orchard Road shopping belt and close to the Civic District and CBD will house the firm’s 4,000 Singapore employees, as well as its UBS University, which provides training and development programmes for employees across the region.

    «The move will allow us to bring employees currently working at One Raffles Quay and Suntec City under one roof to enhance collaboration, as well as offer new capacity for future growth in Asia Pacific,» August Hatecke, country head of UBS Singapore, said in the press release.

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  • Hertz appoints former Burger King chief to new role

    Hertz appoints former Burger King chief to new role

    Hertz International has appointed Tracy Gehlan as chief operations officer. Reporting to group president Michel Taride, Gehlan is based at the car rental company’s International headquarters near London.

    In this newly created position Gehlan has assumed overall responsibility for delivering sustained growth, efficiency and customer service across the company’s wholly owned operations in Europe and Asia Pacific.

    Gehlan brings 23 years of operating expertise in a fast-moving retail environment from her leadership roles including Smashburger Master, Burger King Corporation and The Restaurant Group.

    Previously, as managing director/CEO of Smashburger UK, Gehlan led the entry of the US Smashburger fast food hamburger chain into the UK market and developed the company’s plans to expand across Europe.

    In her 11 year career with Burger King, Gehlan most recently served five years as COO, EMEA, where she optimised the business across the region’s franchised and wholly owned restaurants throughout 42 countries.

    Prior to joining Burger King, Gehlan served in operational management positions over a nine year period at The Restaurant Group. Gehlan has also held a non-executive directorship with the British Retail Consortium as Board Member, Scottish Retail Consortium (2008-2011).

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  • Japanese leasing firm expands in Indonesia

    Japanese leasing firm expands in Indonesia

    Mitsubishi UFJ Lease & Finance Company Limited (MUL) has announced its subsidiary in Indonesia, MULI, has opened a branch in Bandung, in a bid to capture new business as the country’s economy improves.

    The Bandung Branch is MULI’s second branch in Indonesia following the opening of its Surabaya Branch in October 2014. Since establishing a subsidiary in Jakarta in 1995, MUL has provided financing services focusing on mechanical equipment leasing and other activities for over 20 years.

    MUL says it aims to tap into growing demand in Indonesia, which is experiencing high economic growth in the ASEAN region, and expand the business opportunities. To this end, MUL is actively working to develop its business through such measures as acquiring an auto lease company, diversifying funding sources with the issuance of Indonesian rupiah-denominated notes, and providing asset management services that attract strong demand in Indonesia.

    Located about 150 km southeast of the capital Jakarta, Bandung, site of the latest branch, is the third largest city in Indonesia where the manufacturing and fiber/sewing industries are thriving. As a growing number of domestic and foreign companies are setting up their business there, growth is expected in the region. Through the establishment of the Bandung Branch, MULI will expand business bases in the West Java area and provide tailor-made services to meet the diverse needs of companies in Bandung and the surrounding areas.

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