Investing in assets of another country helps international companies expand influence and weight in their sphere of activity. In this regard, Belarusian market is interesting, where there is serious potential for greenfield and brownfield investment.
It’s about time to understand what they mean, because the terms greenfield and brownfield are increasingly being heard.

Greenfield and brownfield: difference

Greenfield investment are projects that need to be developed from scratch. The investor receives an empty plot for the construction of industrial facilities. As a rule, these are lands located in industrial parks. Considering the high cost of the project, large businesses are often interested in this sphere of activity.
Brownfield investment is the antipode of greenfield. These are lands that were previously in industrial use. The facilities are connected to communications and have the necessary infrastructure.

Greenfield or brownfield: what to choose

Depends on many parameters. Goals, objectives, deadlines and, of course, finances are taken into account.
The main advantage of greenfield is design flexibility, so the opportunity to buy a plot of land looks very attractive. By creating from scratch, you can take into account the individual characteristics of the business, use advanced equipment to minimize production costs and thereby ensure high efficiency indicators.
Brownfield includes former industrial facilities and individual buildings that, for one reason or another, suspended their activities or remained unclaimed. Renting commercial real estate in Belarus is suitable if you need to find ready-made space in a short time.

Greenfield and brownfield investment: nuances

Both have risks. In greenfield, actual construction costs may be higher than estimated ones. Additional unplanned work, lack of local labor resources, and other factors will increase the cost of the project. In brownfield, an unplanned expense item may be major repairs or refurbishment.
If you still have unresolved questions and doubts, we will help. If necessary, a personal manager will be assigned to you. He will advise and select an investment project that meets the requirements and needs of your business.

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