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Industrial and warehouse project

Krzysztof Czekalski, Technical Director in the Industrial & Warehouse Department of Cresa Poland

A range of factors can affect the choice of a plot of land for a development project, including the rising supply of warehouse and industrial space, workforce availability and governmental amendments to legal acts such as building law, water law, zoning law or amendments to regulations on trading in arable lands said Krzysztof Czekalski, Technical Director in the Industrial & Warehouse Department of Cresa Poland. 

Both legal and environmental assessment of a land property and a physical inspection of the condition of the land and deep groundwater will have an impact on a project’s commercial viability and time required for completion. 

First and foremost, you should find out whether a plot is included in the Master Plan (MPZP) which is an act of local law adopted by a city or gmina council detailing permitted land use and development. These plans must be taken account of when applying for a building permit. Green area percentage, floor-area ratio, siting of a building on a plot, access to a public road, intended uses of adjacent lands, cubic volume of a building and its roof’s shape are some of the requirements that must be met by an investor. 

If a land for a planned project is not included in the Master Plan, you should consult a zoning study that sets out general restrictions on land use and constitutes a basis for applying for a zoning decision (WZiZT).  

In April the Polish government intends to amend the Act on Spatial Planning and Development quite significantly by limiting the validity of zoning decisions to maximum two years, introducing the requirement to provide utility infrastructure, develop the immediate vicinity, and to specify primary functions of schemes, among others. In addition, investors will be required to check the current class of land in a cadastral survey when applying for a zoning decision for a particular plot of land. 

No major issues are associated with lands intended for development and arable lands of class above IV. As regards arable lands with class below IV, a decision on exclusion of such lands from agricultural production and change of status from class III to class IV would have to be obtained. Given the current regulations on trading in such lands and other upcoming amendments planned for this year, this may also have a substantial impact on a project’s timeframe.

All the above checks are carried out as part of a legal due diligence process to review thoroughly the legal status of a plot of land before acquisition. Review includes in particular the land and mortgage register to check title to the property, perpetual usufruct, existing encumbrances such as easements, mortgages, and third party claims, and the cadastral survey. 

Source: Cresa

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