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DUE DILIGENCE

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Carrying out a pre-construction / pre-acquisition due diligence before the purchase of property is essential to assess potential risks, to protect the interests of both the promoter / developer and for the development of any business project.

Top Management can assist with the:

  • Identification of risks, mitigating them, specially those inherent in the processes of disposing or acquiring real estate.
  • Determination of the nature and extent of all technical risks within a project.
  • Analysis of the statutory, procurement, contractual, construction, operational issues and related financial risks, all of which can influence the value of a project.

What is a Technical Due Diligence?

Each real estate project begins with the purchase of a property, a property, which is generally a highly complex object. That is why developers often ask for various advice: commercial / financial / and legal.

A Due Diligence will always be necessary when purchasing a property and at Top Management we specialize in the Technical Due Diligence part:

  • We analyze the technical conditions of the property that you want to buy.
  • We meticulously study the property.

Any company can hire these services according to their needs. At Top Management we specialize in the so-called Technical Due Diligence.

As a result, there is a difference between:

– Properties with existing buildings (Brown Field)

– Plots (Green Field) with no type of construction.

A Due Diligence not only focuses on the purchase of a property but on an exhaustive analysis of the whole project.

Every time we study a property, we analyze and decide if something new can be built or if an existing building could be integrated into the project.

For this evaluation, Top Management always takes the entire project into account.

The objectives of a Technical Due Diligence

The objectives of a Technical Due Diligence are mainly the following:

  • Systematic and well-founded evaluation to obtain an overall objective evaluation of the property
  • Detection and assessment of possible risks related to the planned project
  • Facilitation of the purchase decision from a technical point of view
  • Serve as a tool for the future project

The extensive experience we offer focuses particularly on the inconveniences, requirements and unforeseen events that may arise throughout the process.

Consequently, we detect from the start the potential risks linked to the construction project.

The different stages of a Technical Due Diligence

When preparing the Technical Due Diligence we carry out a detailed preliminary analysis in different stages:

  • Physical conditions of the soil (topography, composition and structural qualities …)
  • Existing buildings and facilities (condition / defects / maintenance, permits and licenses …)
  • Urban planning regulations / charges (utilization ordinances, acoustic and traffic plans …)
  • Infrastructures, access to services (sanitation, electricity, drinking water, telecommunications, gas …)
  • Environment (pollution, flood, archeology, explosives …)

When working on a TDD, our experts follow the following procedure:

  1. Data collection is essential for starting any TDD:
  • Obtaining and analyzing documentation
  • Property inspection (visual and with topographic and geotechnical equipment)
  • Consultation of authorities or other entities
  1. Analysis of the information we have obtained
  2. Presentation of the results in two steps:

o Delivery of a first “red flag” report (in summarized form):

  • Highlights the most important evaluations.
  • Indicates if there are major risks / inconveniences and “red flags” (critical points to consider)

 

o Delivery of the final report, a more extensive report, that contains:

  • The analysis with an evaluation per chapter
  • An evaluation summary sheet
  • A final evaluation with recommendations
  • A list of the documents analyzed
  • Sending a link for the analyzed documents
  • The photographic report

Top Management’s extensive experience in the commercial, tertiary, logistics and industrial fields provides a broad perspective which is essential when dealing with the specific needs of a project.

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