Case Study:
Technical Due Diligence assessment

This work was commissioned by a private real estate investment specialist. 

The property comprises of an eight-storey building with total lettable area of 20,613m2, most of which is office space, as well as a garden in the rear courtyard. 

The purpose of this Technical Due Diligence assessment was:

• to evaluate the quality of the property from a technical, infrastructural, architectural and environmental point of view 
• to identify potential or known technical issues, incompliances and risks, environmental incompliances and liabilities at the subject site.

The aim of the vendor due diligence was to detect possible risks associated with the operation and sale of the property and to develop recommendations, as well as define costs if required.

The Technical Vendor Due Diligence process consists of:

• Assessment of the building and its building services during a site visit
• Evaluate documents made available for review

Once this assessment has been made, the report sets out our findings, issues detected, recommended measures and associated costs for the following:

• Building (including structure, building envelope and interior and exterior areas)
• Building services (e.g. heating, cooling and building ventilation)
• Maintenance and inspection
• Warranties
• Legal conformity (e.g. building permits, fire safety, accessibility)
• Sustainability (EPCs and green building certification)
• Documentation (including permits, warranties etc.)
• Environment (e.g. contaminated land, hazardous materials)
  

The TVDD did not find any significant issues with the building, and risks identified were not considered critical.

Recommendations made included:

• Repair of building façade and glass roof
• Updates to heating, cooling and ventilation systems which are near end of useful life
• Replacement of water treatment and hot water facilities which are expected to reach end of useful life
• Replacement of building control systems, emergency lighting and firefighting pumps which are expected to reach end of useful life.