Poland is becoming the logistical heart of Europe. The new logistics map clearly shows that our region is gaining in importance. Investors are looking for new ways to grow quickly. One of the most interesting trends is investing on someone else’s land. This involves an investor building a warehouse on a property that does not belong to them. Sound risky? Only if you don’t know the rules of the game.
This business model enables large-scale operations, but it also requires extraordinary precision, especially when it comes to legal safeguards. In this article, we explain how to safely carry out such an investment. You’ll learn what to watch out for and how to protect your capital.
Why is investing on someone else’s land (the model of investing in someone else’s fixed assets) gaining popularity?
In today’s business world, time is money. Investing on someone else’s land (investing in someone else’s fixed assets) allows you to move faster. You don’t waste years searching for the perfect plot of land to buy. Instead, you tap into the potential of existing land. This is a solution for those who want to manage their capital wisely. You can establish your own investment on such land—for example, by building a warehouse. There’s a lot to gain from this model.
Flexibility and Cost Optimization
Companies that choose this model value their financial liquidity. Thanks to this model, they don’t have to tie up millions in funds to purchase land. Instead, they invest the money directly in the building and technology. This allows for the implementation of Build-to-Suit (BTS) projects. This approach involves constructing a facility perfectly tailored to the needs of a specific tenant. In this way, it is possible to create a high-bay warehouse or a modern transshipment center. The future tenant has full control over the standard of finish. At the same time, they optimize investment costs and maintain high quality while keeping expenses reasonable.
Warehouse Construction—Strategic Locations in Industrial Parks and Ports
The best locations on Poland’s logistics map are often already taken. Ports and industrial parks are areas with limited availability. They are often owned by the government or large property managers. They are difficult to purchase but easy to lease. By investing in someone else’s fixed assets, you gain access to strategic transportation hubs. You can build right next to the waterfront or right at a highway exit. Such locations guarantee success for investors and offer opportunities that wouldn’t be available if the investment involved purchasing a plot of land. These locations are often sites within special economic zones. There, you can count on subsidies and tax incentives.
Investing on Someone Else’s Land—Key Legal Challenges During the Planning Phase
Building on someone else’s land—including the construction of a warehouse—is a multi-stage process. Any mistake made early on can come back to haunt you at the end. Unfortunately, under Polish law, construction regulations do not tolerate a lack of precision. As a law firm handling large-scale industrial investment projects, we know that planning involves much more than just architectural drawings. The foundation of this process is, above all, a legal analysis of the parties’ options and a professional sequencing of actions.
- Are you planning to build a large-scale warehouse or do you have another industrial project and need professional legal support? Contact us.
Verification of Legal Title and Obtaining Permits
We start with the basics—namely, verifying whether construction is even permitted at the selected location. We analyze the landowner’s title. We review land registry records and lease agreements. The investor must be certain that their rights to the land cannot be infringed upon. Next, we move on to obtaining permits. We help secure all the necessary administrative approvals. We know how to communicate with government agencies to ensure the process runs smoothly. The absence of a single signature can halt construction for months. We make sure that such a situation never occurs.
Preparation of Contract Documentation
A good contract is like an insurance policy. We draft and review construction contracts that protect our client’s interests. The documentation must be clear to all parties. We specify timelines and quality standards in detail. We clarify who is responsible for any delays. We review the terms and conditions and documents necessary to safeguard the contractor. If needed, we seek the opinions of external experts. All of this is so that those who entrust their projects to us can rest easy.
Contract Negotiations – How to Avoid Losing Money on a Construction Project “at Someone Else’s Site”?
In negotiations, it’s best not to leave things to chance, but to choose a negotiator with extensive experience. The stakes are very high in the warehouse sector. You need to negotiate terms that will allow you to generate revenue for years to come. Provisions regarding rent, rent adjustments, and maintenance costs are particularly important. They must be extremely precise to avoid falling into a financial trap.
Effectiveness in Negotiations with Landowners and Authorities
Our law firm, LO:ME, based in Gdynia, has many years of experience in negotiations with public authorities. We know how to secure favorable terms of cooperation for our clients. We represent them in discussions with government agencies and subcontractors. We fight for every provision that affects the profitability of our clients’ businesses. We help establish clear rules for fee indexation. We ensure that operating costs do not come as a surprise after a year of operation. It is no secret that a party’s negotiating position strengthens when it has professional legal support behind it.
Provisions Regarding the Settlement of Expenses
This is the most important point of the agreement. What will happen to the warehouse when the lease expires? The law states that expenditures on another party’s fixed assets must be settled. We draft clauses that guarantee reimbursement of the costs incurred. We can also negotiate the right of first refusal to purchase the land at a specified price. We make sure that the fruits of several years of labor are not wasted. We precisely describe how the building will be valued at the end of the partnership. This approach protects against costly disputes in the future. The building is constructed on someone else’s land, but the profit remains with the investor.
Modern Investment Management Tools
Modern construction isn’t just about concrete and steel. It’s primarily about data. LO:ME keeps up with the times. We use modern technologies to give our clients a competitive edge. These days, the digitization of the construction industry is a necessity.
BIM (Building Information Modeling) in Logistics
BIM has been a game-changer. It’s a digital model of a project that evolves alongside the building. It integrates design, financial, and technical data. We handle the legal aspects of this technology. We draft contracts that take into account the unique characteristics of BIM. We protect the rights to digital models and databases. We clearly define responsibilities among architects, engineers, and contractors. Parties that build using BIM technology avoid conflicts on the construction site and save time. All of this translates into cost savings.
What if a dispute arises?
Even with the best-laid plans, problems can arise. Conflicts with contractors or disputes over the quality of flooring are commonplace in the construction industry. What matters is how you respond to such situations. It’s a good idea to prepare a defense strategy in advance.
Document Review and Claim Verification
In the event of a dispute, documents become each party’s secret weapon. We analyze schedules, minutes, and all correspondence. We look for arguments that will tip the scales in our client’s favor. We verify financial claims. We check whether contractual penalties are justified and properly calculated. We are not afraid of difficult cases or complex settlements. We work with as-built documentation to identify the other party’s weaknesses. Knowing what really happened on the construction site gives us a huge advantage.
Representation in litigation and arbitration
If amicable solutions fail, we go to court. We are professional attorneys-at-law (legal counsels). In court hallways, you can easily recognize us by our robes with blue trim. We represent clients across all court instances, from filing the lawsuit all the way to the final judgment. We build a litigation strategy tailored to the business we represent. We petition for the appointment of expert witnesses and ask them precise questions, knowing just how significantly a technical expert opinion can impact the outcome of the proceedings. We stay on top of all deadlines and respond swiftly to the opposing party’s moves. Your case is our priority.
- Would you like us to handle your construction case in court? Call us: 887 217 166
Warehouse construction with LO:ME Law Firm – why choose us?
Investing in a large-scale warehouse is a complex process made up of thousands of parts that must fit together seamlessly. As an investor, you want to build and turn a profit, not drown in regulations.
Our law firm specializes in helping clients achieve their vision. We understand the complexity of large construction projects and guide you through the entire process safely and successfully.
The head of the industrial investments practice at LO:ME is Anna Kluczek-Kollár. Anna is an attorney-at-law and partner with extensive experience. For many years, she has handled complex projects in the construction sector, advising on investments in industrial parks and port facilities. She knows the intricacies of this market inside out—from initial planning right through to building commissioning and handover.
Trust professionals who are not afraid of complex cases. We operate transparently and keep you regularly updated on progress. We help you minimize risks at every step.
Investing in third-party fixed assets can be your greatest business success. With us, you will achieve it professionally, securely, and in full compliance with the law.
Looking to securely execute your warehouse investment? Contact our law firm and let us safeguard your legal security.
