Relief, frustration among Punggol East Container Park tenants over lease extension offer

Relief, frustration among Punggol East Container Park tenants over lease extension offer Some had already paid deposits and begun renovations at new premises, while others say the one-year extension gives them time to plan their next move. SINGAPORE: Some businesses at Punggol East Container Park and Tebing Lane were caught off-guard by a one-year lease extension after preparing to close, while others welcomed the extra time to plan. Founder of Play Pickle Darren Teo told CNA he learnt of the one-year lease extension from his landlord City Sprouts on Saturday evening (Oct 3). "We were surprised by the news and the abrupt change in circumstances. We had been preparing to vacate Tebing Lane at the end of October and had already begun making operational and business decisions on that basis," he said. The changes have caused a great deal of uncertainty for the tenants involved, said Mr Teo, noting that businesses need lead time to make decisions about staff, customers, equipment, finances and future locations. "It has been something of an emotional rollercoaster as well. We had already accepted that we were leaving Tebing Lane, informed our community and started preparing to say goodbye." Punggol GRC Member of Parliament Yeo Wan Ling announced on Saturday that the four master tenants at Punggol East and Tebing Lane, including social enterprise City Sprouts, had been offered lease extensions of up to a year. This could allow businesses to stay on until the end of 2027. The tenancies were due to expire on Dec 31, when the land would be returned to the Singapore Land Authority (SLA). City Sprouts had told its subtenants, including those at the container park, to cease operations by Oct 31. In September, more than 50 tenants were preparing to leave, CNA reported. PLANS ALREADY IN MOTION Some food and beverage operators told CNA they had committed to new locations, and the extension came too late. Smok Hous owner Isrudy Shaik first learnt of the extension on social media, before he was contacted a few days later and asked if he wanted to stay on. "It was a bit too late because I had already put down a deposit and started renovations," the 48-year-old said. Tenants should have been given a clear timeline from the start, Mr Isrudy said, adding that the initial deadline and subsequent extension had created "a lot of uncertainty". He worried that repeated changes would cause businesses to lose customers. "People will feel like, 'Oh, this is just a roti prata game – sometimes they close, sometimes they don't.'" Chickyfish owner Alvin Chua said he had planned to close at the container park regardless of the extension, as business had dropped by more than 50 per cent in the past few years. "Only recently when they announced about the closing, more people came. But we already cut down on manpower … so we already preplanned this whole thing," he added. At 6 Tebing Lane, bouldering and strongman gym Ark Bloc had already made arrangements to restore the site for return, said Mr Jeremy Ko, a co-founder of Arkkies, the company behind the gym. "Honestly, the news (of the extension) ruined my morning," he said. The company had paid a non-refundable deposit to a demolition contractor and sold about 60 per cent of its equipment, said Mr Ko. Demolition costs will run S$35,000 to S$40,000. "What frustrates us is that the position previously conveyed through our master tenant was definitive: there was no possibility of an extension. By the time we heard otherwise, we had already made substantial closure arrangements," he added. The gym announced at the end of August that it would close from Nov 15, after Sports Hub @ Punggol indicated that an extension was off the table. This gave members enough time to use up or refund their passes. Staff told members to sign up with other gyms, and revenue fell by 20 to 30 per cent in September. Mr Ko expects a further drop in October and November. "Offering us another year now would not automatically bring them (members) back," said Mr Ko. Arkkies, which runs 25 gyms in Singapore, will not extend Ark Bloc's tenancy in Punggol and has no confirmed relocation plan. Sports Hub @ Punggol management offered to lower the rent, but a slight rebate cannot cover a 30 per cent revenue dip, said Mr Ko. CITY SPROUTS RESPONDS City Sprouts told CNA it was informed of the proposed extension on Oct 3, the same day it was announced publicly. The social enterprise intends to take up the extension, and its tenancy would run until Dec 31, 2027. Subtenancies would last until about November 2027, leaving time for handover works before the site is returned. "We recognise that some tenants may already have secured alternative premises or committed resources towards relocation. We do not expect or require every tenant to reverse those plans," said its spokesperson. Tenants who want to stay will be "given priority" in discussions, said City Sprouts, adding that it will respect decisions to proceed with relocation. "Where tenants would like to remain or require additional time, we are equally happy to work with them on the appropriate arrangements." City Sprouts is the master tenant at 50 Punggol East Road, where Punggol East Container Park and other green spaces are located. The state properties at 32 Punggol East, 6 Tebing Lane and 10 Tebing Lane are tenanted respectively to Sing See Soon Floral & Landscape, Sports Hub @ Punggol and AT Punggol. Sports Hub @ Punggol declined to comment, while Sing See Soon Floral & Landscape did not respond to queries. CNA could not reach AT Punggol. CNA has also asked SLA whether all four master tenants have confirmed they will extend their leases, and why the extensions were announced shortly after subtenants were told to cease operations. GOOD NEWS FOR SOME Still, some businesses were glad to hear about the lease extension, saying the extra year has given them some "breathing room". At Uncle Leong Seafood, shop manager Gary Ong said the business had been scrambling to find a new location after learning on Sep 1 that it had three months to move out. "We feel quite relieved about the extension," said Mr Ong, who has worked there for 12 years. "We will use maybe six months to start looking for a new shop … we can slow down the pace a little." Despite the reprieve, the extension only delays an eventual departure from the site the restaurant has occupied for 15 years. Regulars have been dropping by since news broke of the impending closure, he added. "When we came here, there was no HDB (nearby), just the waterfront," said Mr Ong. "All these years, we watched everything come up." The site is also frequented by recreational users such as Mr Dickson Len and Mr Brian Lim, who play pickleball there about once every two weeks. The location is convenient for their group and courts are easier to book in the mornings, they said. Among the long-time patrons is Mr Satesh Raj, 36, who has been visiting the area since he was 19. "I feel very sad. I literally grew up here. I'm not sure where else there's a place like this in Punggol," he said.