Due diligence

Knowing where you stand when you buy property

If you buy property or a property portfolio you want to know where you stand. You want to know about the technical condition, the letting potential, the current contracts and all other matters that affect the present and future value of the property.

A due diligence investigation gives you transparency. It focuses on:

• determining the accuracy of the information provided to you;
• mapping out the risks and opportunities of the property on sale.

No nasty surprises

The term ‘due diligence’ really means appropriate care. A due diligence investigation includes financial, tax, legal, environmental and commercial aspects. This is important, because as a buyer you do not want to be in for a nasty surprise.

Technical and commercial expertise

We contribute our technical and commercial expertise to the due diligence investigation for commercial and residential property in the Netherlands. The following questions then arise:

• Can the market value be estimated?
• What is the current market rent and how does it compare to the contracted rent?
• What reference transactions are there?
• Tenant analysis
• Do the forecasted maintenance costs clearly reflect the technical condition of the property?
• Do the concluded facilities and maintenance contracts cover the need? Is execution in conformity with the agreement? Is the price/value ratio in line with the market?
• Could there be any changes needed to improve the letting potential?
• Is the forecasted future rent flow realistic, in view of the market circumstances and developments?
• Do the advance payments for service charges cover the actual costs?
• What is the vacancy rate on expiration of a lease?

Careful and critical

To acquire property is a complex matter and all risks attached can never be fully ruled out. However, we can largely reduce them. We also check the existing data against our extensive database. We carefully go through all matters involved to operate property and look at them critically. We also look ahead; what market circumstances and developments may yet affect the value of the property?

We execute inspections on site and desktop investigations, offering an independent evaluation geared to your specific needs and targets.

If there are any elements of a technical due diligence for which we lack the appropriate knowledge and expertise or the proper tools, we engage third parties. This may include soil surveys and asbestos inventories. Of course, third parties will only be engaged in consultation.

Clear approach, concise report

Due diligence investigations are often conducted against the clock. This means we will have to work efficiently. In advance, we make transparent agreements on our method, the process and the planning. We report our findings in a concise report, which includes a comprehensive risk analysis.

Would you like to know more or make an appointment?

Please, contact us. We are happy to help you.