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Due diligence for industrial sites

Industry is under pressure: The energy and climate crisis, material shortages and changes in the production environment – as well as the skills shortage and technological advances – are transforming the industrial sector.

The pressure on core business is growing and leading to challenges regarding the way real estate is managed. We answer your questions on all aspects of industrial sites, allowing you to reach the right decisions fast.

To what extent are you affected?

  • You are a large company that wants to divest sites that are no longer required for operations.  
  • Your logistics or manufacturing company is looking at new sites with a view to opening up new markets or downsizing.  
  • Your company is in the automotive sector and wants to close or restructure production sites.  
  • Your pharmaceutical or chemical company is subject to strict regulations and requires sound technical due diligence when selling or restructuring.  
  • You are an asset manager with large real estate portfolios and want to sell or acquire industrial sites to expand or diversify an existing portfolio.  
  • Your city or local authority wants to revitalize industrial areas or to rezone them for a change of use.  
  • You are the owner of industrial properties that are no longer a strategic fit in your portfolio.  
  • Your institutional business development agency wants to strategically upgrade industrial sites for investors or companies.

Motives for change

  1. Equity release / sale and leaseback:   
    Sale of real estate to finance investments such as new technologies or capacity expansion. In such cases, the property remains a production site, with the former owner becoming a tenant.  
  2. Liquidity requirements:  
    Release of financial resources to pay off debt or bridge operational bottlenecks. 
  1. Refurbishment:   
    Aging plants or real estate requiring significant investment (for example, due to outdated infrastructure or high maintenance costs).
  2. Terminating use:  
    Closure or downsizing of production facilities due to changing market requirements or technical developments.
  3. Appreciation potential:  
    Properties are in attractive locations and could generate high sale prices after revitalization or repurposing.  
  1. Focus on key competencies:   
    Focus on key business areas and reduction of real estate holdings.
  2. Relocation of production:  
    Relocation of production to regions with lower production costs or to more strategic locations.
  3. Restructuring:  
    Sale of properties not required for operations due to company mergers, takeovers or spin-offs.   

Different solution strategies

The approach taken to overcoming existing challenges varies depending on the objective and urgency. These approaches differ with regard to duration and level of investment. 

 

Urgent sale

Real estate no longer needed is sold ‘as is’. This results in fast sale. Little capital outlay is required on the part of the vendor, but net proceeds are also limited.    

 

Short-term requirements

Consolidation and potential analysis of real estate that is no longer needed results in greater net proceeds. The properties can be sold in the short term with moderate capital investment.   

 

Medium-term requirements

The greatest net proceeds result when real estate that is no longer needed is redeveloped based on a repurposing concept. Capital investment is higher and a medium- to long-term increase in the value of the property/asset is achieved.

Our due diligence services for industrial sites

The benefits for you

Comprehensive expertise from a single source:

We offer bundled consulting, planning and management competencies – combined with our many years of experience in the field of real estate transactions and due diligence with our industry know-how. As a single source for all services, covering the entire value chain, we deliver maximum efficiency and provide comprehensive solutions. 

 

We also offer the following services for industrial sectors: 

Let's talk. 

We look forward to hearing from you!

Bernd Fisel

Associate Partner

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