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photo's author Nerijus Bikulčius
Buying green

  Brownfield and greenfield investments

This information presented in order to show the general guidelines related to the land acquisition procedures for the investors. However, in order to be accurate to say, the approximate time and procedures is a subject to particular project and changes of a legal acts.

  • Contact Kaunas Regional Development Agency, which will help dealing with local municipalities and will help to approach local real estate agencies and architecture companies or Kaunas Free Economic Zone management company.
  • There is no centralized overview of available state-owned land plots. This is taken care of at the municipality level where, at least in some, it has remained difficult to find the appropriate contact person.
  • Significant part of all land is agricultural land. Foreign investors cannot own agricultural land. The land can only be leased and this situation is expected to remain in place till 2011. Rezoning of an agricultural land is time consuming process and takes more than 6 months. Land zoning process is on Kaunas County level.
  • Purchasing non-agricultural state-owned land can be a cumbersome process and can easily take months. The process is regulated through an auction and an auction can only be organized by particular municipality when the zoning of the estate has been drafted and approved. Since the majority of land sites and estates lack an approved zoning, this often means the investor has to do the drafting and get involved in the process of approval. Then, the auction still has to attract a minimum of two potential buyers, other wise the process has to start all over again.
  • To avoid this process, it is recommended to lease a piece of land with some existing private buildings and zoning. Leasing can be for 99 years, but an option to buy is primary right for the owner of the buildings in this case.
  • Another option is to check the existing or available industrial zones within a municipality.
  • In major number of cases for industrial greenfield projects, detail assessment of impact on the environment is also a part of the construction approval process.
  • For the receiving permission for the construction, project need to receive connection conditions to the main utilities (electricity, water, gas).
  • After the completion of the construction, premises must be revised by fire Kaunas County Fire Protection Dept.
  • Whole process from the beginning of detail planning process up to the beginning of the construction takes from 6 to 24 months.
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