Unidentified defects or risks in buildings and industrial plants are serious concerns for investors, financial institutions and owners of an asset. Restrictive environmental laws, increasing energy costs and sustainability aspects may also affect an investments’ value.
Failing to perform thorough real estate due diligence on your property portfolio can result in big financial problems. It’s important not to overlook this vital process.
This is where TÜV SÜD can help. We offer integrated commercial real estate due diligence services which are beneficial in the areas of mergers and acquisition, initial public offerings (IPOs), re-organisation and re-structuring, management buy-outs (MBOs), insolvencies as well as sale and leaseback transactions.
WHAT IS COMMERCIAL REAL ESTATE DUE DILIGENCE?
Commercial real estate due diligence is the process of evaluating the current state of a target company’s assets prior to acquisition or an investment decision, for example in a buy-side or vendor due diligence.
It is the standard and precautionary process that should be performed to ensure that the right information is attained before entering into a transaction or signing a contract.
By carrying out due diligence, you will make more informed financial decisions for the future of your business and avoid potential otherwise unforeseen pitfalls.
HOW CAN OUR DUE DILIGENCE SERVICES BENEFIT YOUR BUSINESS?
- Ensure secure investments – with realistic risk/ benefit assessment for maximum financial predictability for investments, planning and use.
- Achieve legal and planning certainty – with TÜV SÜD’s in-depth knowledge of legal regulations and early identification of weaknesses, which minimises the risk of liabilities and expensive rework.
- Benefit from integrated solutions – with holistic and integrated valuations that consider technical, structural and environmental risks for your business.
- Strengthen your position in negotiations – with objective, in-depth and unfiltered data.
- Enjoy global and regional support – with TÜV SÜD’s high level of knowledge in most markets, backed up by professionals who can be contacted locally.
Due diligence reduces the level of risk inherent in investments, planning and future use of real estate and industrial assets. Beyond enhancing your legal certainty and liability protection, carrying out due diligence is essential for achieving your business objectives and financial targets.
TÜV SÜD CAN PROVIDE COMMERCIAL REAL ESTATE DUE DILIGENCE SUPPORT IN THE FOLLOWING AREAS
- Mergers and acquisitions.
- Initial public offerings (IPOs).
- Re-organisation and re-structuring.
- Management buy-outs (MBOs).
- Sale and leaseback transactions.
Our worldwide reputation as an independent and impartial technical service provider ensures reliable and in-depth reports on which you can base your business decisions.
OUR DUE DILIGENCE SERVICES PACKAGES
We provide four fully integrated due diligence services that combine technical, environmental, sustainability and commercial due diligence. Our holistic approach encourages a materially beneficial effect on the operation and financial value of your assets.
TECHNICAL DUE DILIGENCE (TDD)
For TDD of real estate assets, our experts analyse the building structure, materials and technical systems to identify structural, technical, environmental and financial risks and opportunities. For TDD of industrial assets (plants and equipment), we determine the value and future viability of technical installations and equipment and review the efficiency and competitiveness of plant technology and production processes.
We use a holistic approach to check the plausibility of capital expenditure and operational expenditure assumptions and identify possible needs for future investments and the development of operational costs. This provides a technical perspective for evaluating whether the business and financial targets of a transaction are realistic.
ENVIRONMENTAL DUE DILIGENCE (EDD)
With our expertise in local and international environmental legislation, we perform an integrated analysis of existing contaminations in soil or building materials, indoor pollutants, waste management and other environmental factors. We narrow down ecologically sensitive areas and estimate the potential financial risk.
SUSTAINABILITY DUE DILIGENCE (SDD)
TÜV SÜD’s experts look at the current state and potential risks of your assets to evaluate long-term sustainability value. SDD serves as an initial assessment in line with the guidelines in common certified rating systems (BREEAM, LEED). We investigate a building’s potential SDD score, advise on the most suitable system and recommend ways to improve its rating.
COMMERCIAL DUE DILIGENCE (CDD)
We cover commercial analyses and the assessment of location and market factors, including legal requirements and general and special lease agreements. CDD determines the competitive landscape, right valuation, growth opportunities, potential risks and investments.
WHY CHOOSE OUR DUE DILIGENCE SERVICES FOR YOUR COMPANY?
As a third-party technical service provider, TÜV SÜD has a strong reputation for independence and engineering excellence. Our specialists have interdisciplinary expertise in business, real estate and technical subjects, as well as familiarity with national and international standards and regulations.
This ensures reliable reports for making informed investment decisions. Our long-standing involvement in the development of technical directives and standards ensures we are well acquainted with the latest measuring instruments, tools and techniques.