Madrid’s land goes up for grabs

Madrid's land goes up for grabsMadrid is planning on making its surplus land available for industrial use at reduced rates to attract more business to the city.

There are currently 11,455,951 square meters of industrial land available, of which 348,658 square meters belongs to the City Council. As of now they are sitting unused. The team of the mayor, Manuela Carmena, has decided to change that situation and offer it to companies, both through sale, assignment or rent.

This is one of the measures included in the Industrial Strategy for the City of Madrid, which was presented last month to employers and unions. The scheme also includes other subsidies and aid to small to medium enterprises. This is a continuation of the development of Madrid’s infrastructure following promising plans in Alcorcon late last year on the back of significant Chinese investment, as well as Lidl’s plans in Alcala de Henares.

Don’t let the grass grow

The strategy to turn Madrid into an industrial city has an investment of close to 20 million euro. Together with the Polytechnic University, the City Council has developed an inventory and a diagnosis of the industrial areas of Madrid to learn about the distribution of economic activities. In addition to this it is conducting a census of premises, activity and employment in the industrial estates and in the urban plots.

It has also opened the deadline for small to medium enterprises to apply for grants, planning to allocate 1.2 million euros in over two years.

Carmen said, ‘Companies have not been coming to Madrid because the land price is not accessible. Well, that will change. We will be putting it at an affordable price to attract them.’

And this is not just about revenue with a side aim and benefit being to create more employment.

Madrid City Council economist Carlos Sanchez Mato said, ‘Although this land was municipal property which the city has theoretically always been able to sell, it was impossible to do so. Also, since it is all cited for industrial use, it has not been able to be used for anything else. As a result, so far it has all been abandoned, which is why we are now offering many formulas to attract companies to these plots.’

JosĂ© Manuel Calvo, delegate of Sustainable Urban Development, added, ‘It is the City Council’s obligation that these lands stop growing grass and start growing companies.’

What it is and how to get it

Three lines of aid are to be made available. Line one is focused on the improvement of productivity, efficiency and competitive position. Line two focuses on the creation or transfer of companies to the productive areas of Madrid. And line three is aimed at improving the environmental and energy management of industrial or servindustrial companies. These are services to industry such as component companies and marketing.

For the three lines of aid, expenses and actions carried out by the potential beneficiaries between July 1, 2016 and October 20, 2017 are considered eligible for this year’s call. Then, for the 2018 call it will be actions to be carried out between October 21, 2017 and June 15, 2018.

The sites for development are located in Carabanchel, Usera, Ciudad Lineal, Hortaleza, Villaverde, Villa de Vallecas, Vicálvaro, San Blas and Barajas.

The 2017 call has been set between October 23 and November 6. Applications can be submitted in any Register of Madrid City Council and can also be made online.

For more information, please contact corporate law firm Argali Abogados

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