What We Do | Due Diligence
Due Diligence is a complex bespoke process that needs to be built for each project or property investment decision individually, because each property has its’ own unique risk elements.
So what is it and how do we add value?
One Size Does Not Fit All - Types of Due Diligence
1. New Property Development
Primarily involves the assessment of a ‘green-field’ site for development. A vacant parcel of land or land with improvements that are of little future value and will be mainly demolished. There are no existing tenancies and the site is either newly developed land, or existing improvements having reached the stage of their life cycle or gentrification, where demolition and redevelopment is the highest and best use.
2. Existing Asset Investment
Where an existing improved asset is being assessed for investment purposes. This includes existing residential, retail, offices and shopping centres. The property has existing improvements with existing income streams that require assessment against required rates of investor return.
An existing income producing asset may also have available land for further development, or an opportunity to reposition the existing asset to improve the return and overall asset value.
3. Tenant Site Selection
Commercial and retail businesses often have specific location criteria that dictates where they establish new outlets. This is referred to as a ‘Tenant Driven’ opportunity and requires an alternate and different set of due diligence and selection criteria. Satisfying location, sight lines, access, demographics, financial capacity, competitors and generators and some of the specific criteria that are required to be addressed in the Due Diligence for Tenant Site Selection.
4. Other
Due Diligence is a broad term that covers any investment decision. The focus of this Tool is on Property Development and Investment, but understand that DD also covers terms such as Cost Benefit Analysis and can be applied to refurbishment decisions, redevelopment decisions, capital expenditure and maintenance budgets.
The key is to have a clear methodology and a comprehensive understanding of what knowledge is required to make the best financial decision possible. We have created a quick tool for you to use to in your prep time, click the link below for your free download.
