Underutilized real estate in Belarus can be transferred to ownership without conditions

The State Property Committee is preparing a document that will allow for the transfer of underutilized real estate properties into ownership without any conditions. This was reported to a BELTA correspondent by Victoria Vasilyeva, Head of the Main Department for Property Management of the State Property Committee, following a meeting of the department's board held today.

"We are completing the preparation of a draft resolution of the Council of Ministers, developing Decree No. 169 of the Head of State 'On the Management of State Property'. It will outline a clear algorithm for each state body to follow if a potential investor or someone wishing to utilize a long-standing unused property approaches them," said the department representative.

Currently, unused or underutilized real estate can be put into circulation in several ways. These include sale at auctions, bidding with a starting price of one base unit (1 BU is Br25.5), and gratuitous transfer of these properties into ownership. Each of these mechanisms has its own specifics. For example, the main condition for sale at one base unit is the conduct of entrepreneurial activities using the acquired properties and/or the construction of new facilities. In addition, the buyer has the right to demolish the purchased properties if they cannot be used for entrepreneurial activities. Furthermore, if reconstruction of the property is required, specific deadlines for its implementation are established in the sale and purchase agreement. Until these conditions are met, the buyer cannot engage in transactions with this property.

Regarding the gratuitous transfer of properties into ownership, the priority requirement is the mandatory commencement of business activities. Despite the absence of a long list of conditions, this mechanism is not widely used today due to the lack of a clearly defined algorithm for its implementation.

The number of properties that have been idle for years and do not attract investor interest, even at a price of one base unit, is increasing. For instance, two years ago, there were about 350 such properties in the republic, and by the end of 2019, this figure is expected to exceed 500.

One of the solutions to the problem (if an asset cannot be sold or transferred free of charge for more than five years) proposed by the State Property Committee is the write-off and demolition of such assets. The second option could be the transfer of these assets free of charge without conditions. In this regard, the Chairman of the State Property Committee, Andrei Gaev, asked all interested parties to actively engage in the development of this document.

According to the State Property Committee, the task for 2019 is to involve 2096 assets in economic circulation and demolish 725. As a result of the work carried out on all types of state property for the first half of the year, 465 assets were involved in economic circulation (22.2%), and 212 were demolished (29.2%). Out of 46 assets subject to gratuitous transfer, decisions were made to transfer 28 (60.9%), and 18 assets were transferred (39.1%).

News of Belarus (BELTA)