How to prepare an investment land to sell it successfully?

- Contrary to what it may seem, the success of investment land sales transactions is often not the location itself - said in an interview with Magazyny.pl Agata Zając, Associate Director, JLL. So what is important? - In the eyes of investors it is also important to properly prepare the land for sale – adds Agata Zając.


Magazyny.pl: How to sell an investment land?

Agata Zajac, Associate Director, JLL: In order to sell the land successfully you need three steps. The first is the proper preparation of investment memorandum.

What is it?

It provides a comprehensive compendium of information on the potential of the land for future use by the investor. It is also a kind of showcase of land to potential buyers.

What makes memorandum?

Firstly, it is all documentation of the plot, which include, among other things, extract from the register of land and buildings, basic map, land registers. The documentation will pre-determine the conditions of the property.

The second very important issue is to obtain technical conditions for connection to the media. Investor gives information, what kind of technical infrastructure is available in the area, will he have to incur expenditures to join the media and when basic utilities can be delivered.

Why is it such an important issue?

Knowledge of the technical conditions of the media - electricity, water, gas, sewage and telecommunications networks - increases the attractiveness of the property in the sales process and improves the time it takes to make a decision by the buyer. This issue is often overlooked by the owners of the land, and is not associated with high costs.

These are geotechnical studies that incur more costs, which is another important factor.

What does thanks to this research an investor find?

The investor is assured to the conditions of placing an object - if the ground is not contaminated, what are the geological conditions of it. The results of these studies will help the buyer to eliminate potential risks at an early stage, and thus save time and money.

What is the next step?

Obtaining environmental decision. For warehouse investments environmental decision may be issued within 3 - 6 months.

For more complex projects, having significant negative effects on the environment, the procedure may take 6-10 months. This is connected with the necessity to perform a report on the impact of the project on the environment.

Is the environmental decision an advanced process?

Yes, but, prior environmental decision allows a significant saving of time in the planned investment process.

The next step, after receiving the environmental decision, will be to obtain a building permit, from which the client often makes completion of the final purchase of the site dependent.

Both the environmental decision and building permit are issued based on the local plan - a strategic document created by the municipal authorities, setting out directions for development of the area. It is extremely important for investors.

The absence of such a document reduces the value of the property?

Of course, since the local plan determines the ability to locate a particular kind of investment in the selected area.

It determines the allowable building area of ​​land, the rate of the minimum biologically active area, the maximum height of buildings, the number of parking spaces and other conditions and parameters of the investment.

The property owner should be interested in provisions in the plan already during the procedure of its adoption. This is guaranteed by a public consultation and for the submission of proposals and comments. Information on the adoption of a plan gets to landowners through public announcements and notices - posted at the headquarters of the municipality or published on the Internet.

Earlier interest in voting on the plan and pay the appropriate entry allow the investor earlier recognition of investment parameters and risk reduction.


EXAMPLE
A local plan assumes that the building area can be up to 30%, and plan B assumes 60%. This means that in the first case, on the plot of the1 ha you can construct a building of 30,000 sq. m., and in the second as many as 60,000 sq. m. It is obvious that an investor chooses an area with larger investment opportunities.


It is worth remembering that the change of the plan is a very time-consuming procedure that can take 12 - 24 months, so as much as the adoption of the plan.


Katarzyna Bieszczad

Related

Panattoni stays strong in Bielsko-Biała


08-06-2021

Panattoni is to increase the supply of warehouse space in Bielsko-Biała, an industrial area bordering Silesia and Małopolska. The developer has started construction work on another park in the region - Panattoni Park Bielsko Biała IV. Three buildings with a combined area of 96,000 sqm are under construction, all of which are to be completed this year.

Panattoni to develop the production centre for dentistry and orthodontics


02-06-2021

European industrial market leader Panattoni is opening the doors for a global provider of the technologically advanced orthodontic devices and dental prosthetics to the market of the EMEA region. The developer is now building the company’s first European production centre. The project to be built in Wrocław comprises an area of around 40,000 sqm and is scheduled to open in January 2022. As a result, up to 2,500 people will find employment. The factory is to be built following the principles of sustainable development and is to be certified under LEED for a rating of 'Gold'.

Panattoni to deliver huge e-commerce project in Poznań


25-05-2021

European industrial real estate leader Panattoni has completed the shell stage of another huge commission for the e-commerce sector. In Żerniki near Poznań, the developer is building a BTS facility with an area of 105,000 sqm for DHL Supply Chain. The latter company will use the space to carry out the logistics operations, among others, for Zalando required for distribution to several European markets – including Poland and Germany.

Panattoni Park Gorzów set for expansion – as logistics operator Fiege leases 11,000 sqm


25-05-2021

European industrial real estate leader Panattoni is strengthening its position in western Poland by expanding Panattoni Park Gorzów, where it has recently secured another tenant. Global logistics operator Fiege has leased 11,000 sqm in the park, which the company will use for the logistics operations of a client from the production sector. Panattoni Park Gorzów should be completed in November this year when it will comprise almost 70,000 sqm. The entire park is to be BREEAM certified at the ‘Very Good’ level, a standard that complies with both the developer’s requirements and those of Fiege.