Important change in land trading: "Ready-made package" system introduced for lands unsold for 3 months
A completely new era has begun in Uzbekistan regarding the management of state property, bringing long-vacant areas into economic circulation, and the procedure for allocating land to investors. According to the President's new decree, a transparent mechanism has been approved to include non-agricultural land plots that have not found buyers for a long time in auctions as a contribution to the authorized capital of legal entities. Furthermore, to completely put an end to bureaucratic obstacles in the construction sector, a system is being launched to put land plots up for sale in the form of a "ready-made package" with all architectural permits officially issued. So, how can one own lands left without a buyer, what happens if a single bidder participates in the auction, and will lease agreements for privatized properties be re-concluded? At the end of the article, we will disclose the main intrigue — all the details regarding the procedure for covering the costs of the "ready-made package" and new conveniences being created for investors.
Unsold land to authorized capital: A decision will be made even if there is a single bidder
The following favorable conditions have been established for the development of remote land plots that are unattractive to buyers:
3-month period and authorized capital: Although their starting price is gradually reduced, the ownership and lease rights of non-agricultural land that has remained unsold for more than three months will be contributed to the authorized fund of legal entities;
Specific project condition: This mechanism is provided through an open electronic auction and with the obligation to implement a specific investment project on this land;
Single bidder opportunity: If even a single participant takes part in the open sales, the right to the land is contributed to their authorized capital at the announced price;
Buyback of the share: The state share formed in the enterprise in exchange for the land will subsequently be offered for full buyout to the legal entity itself in an extraordinary procedure.
"Vacant land benefits no one. Including it in the business balance as a share is the fastest solution to creating new jobs and production capacities," reads a commentary by industry experts.
Old lease rights are preserved and excessive red tape is eliminated
A number of reliefs are envisaged for entrepreneurs who purchase state immovable property:
Full preservation of rights: When state property objects are privatized, the existing lifelong inheritable possession, permanent use, and lease rights to the adjacent land plot are fully transferred to the new owner;
Re-conclusion of agreements canceled: One of the most important conveniences is that when such properties are purchased, it is not required to re-issue lease agreements for the land plot.
"Ready-made package" system for investors
The most important issue that interested many builders and investors was how to shorten the permit-obtaining processes that drag on for months after acquiring land. The most important conclusion is that from now on, land plots will be fully coordinated with local authorities and regional architecture and urban planning councils before being put up for sale, and provided as a "ready-made package" with all necessary documents for construction officially issued. In this case, all expenses are initially covered from the local budget, added to the starting price of the auction, and fully covered from the proceeds after the land is sold. This mechanism will be applied rapidly, first of all, in modern areas with an approved master plan.
In your opinion, to what extent will the system of including unsold auction lands into the authorized capital and the "ready-made package" with pre-prepared permits improve the business environment in Uzbekistan? Can this practice serve as an impetus for the development of entrepreneurship in remote regions? Leave your thoughts in the comments and share this important economic news with your colleagues and investor friends!
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