No new lease for Keppel Club; other clubs get leases through to 2030 and 2040

MinLaw said in a statement that six other clubs, whose leases run out in less than a decade, will be offered lease extensions. The new leases will run through till 2030, 2035 or 2040.

Here is the press release in full from the Ministry of Law: Get the full story from The Straits Times.

The leases of seven golf clubs will expire in the next 10 years. They will be offered new leases for some of their courses. The leases will be for differing periods which will end between 31 December 2030 and 31 December 2040. They are Changi Golf Club, National Service Resort and Country Club (Changi), Orchid Country Club, Seletar Country Club, Sentosa Golf Club, Singapore Island Country Club (SICC) and Tanah Merah Country Club.

Achieving balance between competing land use needs

One of SICC's two 18-hole courses at the Bukit location will be reallocated as a public course. It will be managed by the labour movement for the general public and for the labour movement, when its lease expires on 31 December 2021.

Keppel Club's lease will expire on 31 December 2021. No new lease will be offered as the land is needed for housing development.

Singapore has 17 golf courses (14 private and 3 public) on approximately 1,500 ha of land. The majority of these are located on 30-year leasehold land.

Golf course leases

Golfing is an activity that is enjoyed by many Singaporeans, with many of them owning or aspiring to own memberships in golf clubs. In addition, the presence of golfing facilities adds to Singapore's attractiveness as a business hub.

However, golfing and golf clubs are land intensive and there is a need to balance the competing demands for land. As a result, the amount of land used for golfing will have to be reduced over time, and the sites reallocated for uses such as housing and public infrastructure.

Lease renewal decisions

Golf club leases are for a fixed term with an end date. This information has always been public and known to those who become golf club members. When the lease ends, the land reverts by law to the Government. This position applies for all State leases, whether the leases are for residential, commercial, industrial or other uses.

The Government is taking the step of letting the clubs, their members and the public know the status of expiring leases more than seven years in advance.

Keppel Club's lease will expire on 31 Dec 2021. The land is needed to redevelop the site for housing. This plan was announced in 2001 in URA's Concept Plan.

To support the club's continuity, if the club is keen, it will be offered an alternative site to operate as a social club. Discussions are on-going as to the possible location.

The operator of the new public course (see paragraph below) will be encouraged to discuss the possibility of offering some arrangement to Keppel Club members. This depends, of course, on all the parties being able to agree on terms.

SICC will be offered a new lease at the Island location until 2040. SICC will also be offered a new lease for one of the two 18-hole courses at the Bukit location, until 2030. The other 18-hole course at Bukit will be run as a public course upon lease expiry on 31 December 2021, to be operated by the labour movement for the benefit of the general public and the labour movement.

Summary of Q&A Session with the Law Minister

This will ensure continued public access to golfing facilities when the Marina Bay Golf Course is phased out for redevelopment. However, in order to secure the extension for the 18-hole course at Bukit, SICC will have to work with the labour movement and conclude an agreement by the end of February 2015 on how the courses can be reconfigured, and the necessary arrangements for the sharing of facilities.

Tanah Merah Country Club and National Service Resort and Country Club (Changi) will also be offered new leases. However, their courses will become smaller as parts of the sites will be affected by Changi Airport's expansion plans, the details of which will be announced separately.

1. Members asked if it was fair to Keppel members who had bought their membership earlier.

Minister explained that golf club leases are for a fixed term and members should have factored in the term of the lease when they bought their memberships. Keppel members would have also known that the land would be needed for housing development. This plan was announced as early as 2001 in URA's concept plan.

2. In response to Members' request for a short extension for their current land and to retain some portion of their existing clubhouse, Minister shared that the land preparatory works will be initiated quite immediately after the lease expiry in 2021 and hence these options were not possible.

3. As for why it would not possible to allocate another golf course to Keppel, Minister explained that the overall land allocated for golf has to be reduced over time as there is need for other uses such as housing and infrastructure. Government will therefore be unable to provide replacement golf courses to clubs affected by the redevelopment plans.

4. With regards to the potential site for Keppel's social club, members asked if there would be concessions in obtaining the new piece of land.

Noting that Keppel will be the first club whose lease will expire without being offered a replacement golf course and in recognition of Keppel's heritage, Minister said that Keppel would not have to bid to lease the new site.

In addition, Keppel could explore partnerships with other clubs to ensure continued access to golfing. The operator of the new public course will also be encouraged to discuss the possibility of offering some arrangement for Keppel Club members.

5. Some members also asked if Keppel could operate the new public golf course.

Minister clarified that this was not feasible as the course would have to cater to both the labour movement and the public. The new public golf course will not have individual private memberships.