Support of development greenfield and brownfield projects
The law prohibits the placement of production in residential buildings. Therefore, the manufacturing company must competently approach the selection of a property to accommodate a new production. The lawyers of DTK Partners will help you comply with legal regulations and find the right space.
What are greenfield and brownfield projects
The greenfield development project is the purchase of a new land plot to for the purpose of construction the production facilities.
Legal support for the greenfield project includes:
- choice of region (based on a favorable investment climate);
- legal audit of the site;
- settlement of issues on the establishment of a legal entity;
- transaction support for the purchase of the site;
- verification of project documentation;
- registration of ownership of the constructed object;
- post-investment legal support (environmental issues, insurance, dispute resolution).
In contrast, the brownfield development project is the process of purchasing an existing industrial premises for conversion to its own production.
The implementation of the brownfield project requires the following legal support:
- verification of the legal cleanliness of the facility (absence of encumbrances, rights of third parties);
- verification of the possibility of re-registering the object;
- transaction support for the purchase of premises;
- risk analysis in the implementation of ideas;
- settlement of land relations (rent, redemption, re-registration of land under the object).
Features of greenfield and brownfield projects
The choice of the type of project is up to the customer. But first you need to consider:
- The amount of financial costs. Not always the construction of a new facility will cost more than the conversion is ready. However, this issue must be studied individually and analyzed.
- Time costs. It is difficult to say in advance what will take more time: finding a suitable finished industrial site or building from scratch.
- Legal purity of the transaction. Ownership of the finished object may not be obtained in a completely legal way. As was customary in the Russian Federation in the 90s of the last century. But the new land may have a number of legal problems.
- Risks associated with downtime. In old industrial zones, as a rule, there is no single manager who is engaged in the maintenance of utility networks. Therefore, in the event of a breakdown, downtime may occur. During the construction of a new facility, problems may arise in connection with mistakes.
Assistance to DTK Partners in support of development projects
Thus, there is no single solution to choose a greenfield or brownfield project. Each situation must be considered individually.