Technical Due Diligence

REDUCE INVESTMENT RISKS AND INCREASE RETURNS

IMPORTANCE OF TECHNICAL DUE DILIGENCE

With worldwide uncertainties and effects of climate change at a historic high, businesses now more than ever, should invest in Due Diligence that reduces risk and increases returns before making investment decisions.

We anticipate seeing an increase in property transactions in the aftermath of the pandemic as companies are expected to acquire, merge, grow and fold for more sustainable business models as they plan for the future.

Today, the majority of property transactions in the Asia Pacific region focus primarily on commercial viability as opposed to technical functionality and future-proofing. There is an evident lack of understanding about assets from a technical perspective, which is where Technical Due Diligence can make the difference.

Technical Due Diligence is designed to maximise the value of a project, by providing investors with a comprehensive independent analysis of a property prior to making any commitments.

Find out how our qualified engineering consultants and technical project management professionals can help you add value to your real estate portfolio by mitigating risk, securing returns and delivering future-proof buildings.

WHAT YOU CAN EXPECT FROM TECHNICAL DUE DILIGENCE?

The inspections and evaluations in Technical Due Diligence expose any potential hidden cost overruns and non-conformance to building codes and provide investors with increased certainty about the genuine value of an asset. In addition, investors will have access to detailed information on the technical functionality and performance of a building before making any commitments.

Often, the return on investment of a property is considered in terms of rental yield, occupancy and location, but there are other important factors to consider. Technical due diligence drives strategies to optimise returns - through structural assessments of a property that analyses systems and installations- and identify immediate measures that are required to reduce costs of operations both in the capital and operational expenditure.

A STEP BY STEP APPROACH

Technical Due Diligence is a 360-degree process that leaves no stone unturned and results in a detailed report in line with the Royal Institute of Chartered Surveyors (RICS) guidelines, recognised and trusted by investors around the world. Here is an overview of the steps:

STEP 1

A Non-Disclosure Agreement (NDA) is signed by both parties to ensure the confidentiality of the transaction
Upon issuance of the NDA, Drees & Sommer issues a list of documents that are required to ensure a deep dive study of the propert<
Due to the large volume of data involved in Technical Due Diligence, a shared document library is created to ensure the availability of all documents on a single platform

STEP 2

Once the client documents are received, Drees & Sommer reviews and validates them against the issued checklist to ensure all documentation is complete
Upon completion of the document review, a site visit is scheduled and conducted by the Drees & Sommer team

STEP 3

Our team of experts visually inspects the technical aspects of the building, focusing on the functionality, maintenance and general upkeep of the equipment
Upon successful completion of the survey, Drees & Sommer documents all findings, highlighting key areas that require immediate attention, in a detailed report

STEP 4

The report with the team’s findings and recommendations is issued to the Client for internal review and assessment
Drees & Sommer liaises with the Client to answer any queries and requests for clarifications and to respond to any comments on the findings and recommendations

STEP 5

In this last step, Drees & Sommer releases the final report with photographic documentation to enable the Client to take a final decision based on the technical assessment of the property

Technical Due Diligence AT DREES & SOMMER

‘THE BLUE WAY’– A HOLISTIC AND SUSTAINABLE 360-DEGREE SERVICE

At Drees & Sommer we leverage over 50 years of engineering excellence and expertise in real estate, design, services and operations to deliver exceptional technical assessments quickly and efficiently, combining our technical expertise with commercial acumen to achieve the highest returns on investment for our clients.

Drees & Sommer delivers comprehensive Technical Due Diligence for existing buildings and development projects by acting as independent third-party advisors and working closely with investors and developers. By undertaking detailed technical and operational assessments, our experts identify investment or development risks, and where required, estimate costs. Technical Due Diligence is increasingly seen as a negotiation tool for highly leveraged transactions, it provides transparency and allows for a well-rounded investment decision. Through our 360-degree Technical Due Diligence service, we bolster our clients’ negotiating positions and support investors to make evidence-based decisions.