Real estate due diligence (pdf) - Cowi

2 3Real estate due diligence- A matter of trustBank of IrelandAn investment company which ispart of Bank of Ireland purchasedthe shopping centre Galleri K incentral Copenhagen for approximatelyEUR 150 million in late2007. COWI carried out technicaldue diligence for the buyer in closecollaboration with the Danish lawfirm Bech-Bruun.Galleri KPhoto: Keops Development A/SLandic PropertyCOWI has carried out a duediligence for the Danish propertycompany Atlas Ejendomme inconnection with a sale to LandicProperty. Subsequently, we haveassisted Landic Property withseveral due diligence assignmentsas well as provided comprehensiveconsultancy in connection withrehabilitation and design projects.Valad Property GroupCOWI has carried out environmentaland technical due diligencefor Valad Property Group in connectionwith the group‘s purchaseof totally 260,000 m² in Sweden- a deal worth approximately EUR300 million.COWI and CAT Alliance Ltd.COWI is a leading northernEuropean consulting group. Weprovide state-of-the-art serviceswithin the fields of engineering,environmental science and economicswith due considerationfor the environment and society.COWI is a leader within its fieldsbecause COWI‘s 4,000 employeesare leaders within theirs.Through the subsidiary CAT AllianceLtd., which COWI ownstogether with the British companyEnviros and the Dutch companyTauw, we have a global networkof partners within the environmentaldue diligence field. Thismeans that we can offer ourclients vast local knowledge regardlessof where in the world thetransaction takes place.0211-1800-064d-08a/niCOWIprintCOWI A/SParallelvej 2DK-2800-Kongens LyngbyTel +45 45 97 22 11Fax +45 45 97 22 12www.cowi.com

COWI‘s real estate due diligenceMarked blue.4 5COWI provides consultancy in connectionwith property transactions, and we focus onuncovering technical and environmental riskswhich we transform into financial risks relativeto the specific transactions.With our technical expertisecombined with many years ofexperience with due diligenceprojects, we are able to converttechnical facts into knowledgequickly which is relevant for thetransaction. We always adapt ourservices to the specific project inco-operation with the client, andwe always assign a key person toact as sounding board and liaisonbetween the client and COWI.COWI‘s business within realestate due diligence has developedbased on long-term relations withour customers. Most of our customersare investors who buy or sellproperties in Europe. Our businessis based on trust, and discretion isa matter of course when COWI isinvolved in a property transaction.CommunicationCommunication is the key in connectionwith COWI‘s consultancy.We emphasise to communicate theresults of our investigations clearlyand accurately. In connectionwith portfolio assignments, weprepare an overview showing riskranking of the properties whichwill be marked high, medium orlow. The risk ranking is graphicallypresented by red, yellowand green colours respectively togive an overview of the size of therisk. We have therefore named theoverview traffic light. Our reportsare in a format which matchesinternational due diligence standards.A strong networkCOWI is a strong partner in thedue diligence process. COWI has ateam of approximately 100 highlyqualified employees who havecompetencies within real estatedue diligence. With this large resourcebase, COWI can act fast onspecific assignments. In countrieswhere COWI is not represented,we have business partners withwhom we have firm agreements.COWI‘s real estate due diligencenetwork is represented in Denmark,Norway, Sweden, Finland,Russia, Turkey, Poland, Latvia,Lithuania and Germany. In addition,we can draw on 4,000 colleaguesin a large network of specificcompetencies.Facts about due diligenceWe provide professional consultancycovering the whole transactionprocess. Our services addvalue by:• Identifying and assessing aspectsof the property which mightcause extra costs• Assessing the development potentialof the property within theframework of building regulationsand district plans• Creating an overview of thenecessary maintenance of theproperty including the efficiencyof the building installations• Assessing the profit of renovatingthe property.