Contracts will be broken, state-owned properties will be rented directly by the state.

Although existing legislation prohibits subletting business premises in state ownership, many tenants found ways to do so and earn money, but this will no longer be possible. Yesterday, the government accepted the proposal of the minister of state property, Goran Marić, which provides for the termination of contracts with tenants who use state-owned properties for third parties, for instance, through contracts of business and technical cooperation or trading representation.

Nearly 4,400

Taking into account that they are earning money from these activities, Marić believes that such properties are leased to tenants at prices below their market value, and the state can earn more from these properties. According to available data, there are around 3,700 business premises in the state's portfolio, excluding garages and parking lots, of which around 1,300 are empty. Over the last few years, the state has taken back some of the properties that were leased to tenants as it sought to bring order to the use of these properties. Last year, the state collected 60 million kuna in rental revenue from business premises, 10 million kuna more than in 2015. Around 200 properties have been declared non-valid users, and the state's debts from the use of properties exceed 21 million kuna. Contracts with all tenants who have traded state-owned business premises in breach of the law will be terminated, and state-owned properties will be rented out through public tenders. The proposed amendments to the law also define the conditions for the sale of business premises. The proposal is to sell such properties exclusively to the lessee, no longer to users without a lease agreement, and to do so provided that the lessee has properly satisfied any outstanding liabilities to the state. In addition, the sale will only be possible for properties that have been included on the list of properties intended for sale and will be publicly announced.

Otherwise, the existing law has provided for the possibility of direct sale of state-owned business premises to the user or lessee of the premises who have used them continuously for at least five years and have properly fulfilled all obligations, but in the past six years, this option has not been used because the criteria for selecting such properties for sale have not been established.

What will not be sold It is now proposed that properties that cumulatively meet the following conditions will not be included on the list: - Located in areas designated as the 0th or 1st zoning zones of cities and municipalities - Street front properties with a display window facing the street - Properties located in the basement - 15-year leasing income equals or exceeds the assessed value of the property poslovni.hr

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