Technical Due Diligence

TrustCapital Australia put their trust in Napier & Blakeley

2 properties joinedIn June 2017, TrustCapital Australia (TCA) engaged Napier & Blakeley to undertake Vendor’s Technical and Environmental Due Diligence relating to their commercial office portfolio.

Within two weeks of instruction we had reviewed all the available documentation, inspected all the properties and provided written feedback on our findings.

We were able to achieve this using our national team of building consultants, services engineers and cost consultants, in conjunction with external environmental consultants from our approved consultants panel.

This early stage reporting provided TCA, and their Facilities Managers, the opportunity to act upon minor items of deferred maintenance and short term future repairs and maintenance needs, to help prepare the properties for sale.

While the repairs were underway Napier & Blakeley completed the final  written reports.

Our reports covered the technical and environmental aspects of the property and risk assessment was facilitated by capital and maintenance forecasts over a ten year period.

Items in our forecasts are categorised by the detailed scope of the instruction along with a probability rating of the likelihood of such events occurring. Continue reading

Building Developers and Owners are Being Sandwiched

3 joined up claddingCosts, Risks and Returns are being impacted by uncertainty around the future acceptability of Aluminium Composite Cladding Panels (ACP).

Since the Lacrosse Apartment building fire in 2014 and the tragic Grenfell Tower fire of 2017, there are still more questions relating to the use of flammable ACP than answers.

Industry, governing bodies, financiers, building owners and occupiers, are yet to really understand their options.

  • Will the import and use of flammable ACP in Australia be banned? – one of the suggestions made by the Senate’s interim enquiry report.
  • Will the National Construction Code and Building Regulations be revised to require increased fire safety around the use of ACP? – as suggested by the current draft amendment out for public comment.
  • Will the ‘grey area’ of whether the ACP is an attachment or part of an external wall be confirmed?
  • Will Government required audits lead to large scale removal of flammable ACP and replacement with compliant materials?
  • Will insurers carve out flammable ACP from insurance policies?  Will premiums increase?
  • Is the reputation of ACP tarnished so much so that developers and architects turn their back on the material – as recently reported by Uniting Communities with their U City development in Adelaide? Continue reading

Sector Spotlight – Hotel Property

For 32 years and counting Napier & Blakeley has provided expertise to the hotel property sector throughout Australia, New Zealand, South East Asia, South Pacific and beyond.  Capture

Our services include :

  • Acquisition & divestment technical  due diligence
  • Capital and maintenance expenditure reserves
  • Building improvement and repositioning assessments
  • Capital allowances / tax depreciation
  • Asset registers
  • Quantity surveying
  • Project management
  • Project monitoring

Continue reading…

Technical Due Diligence and ESG

Capture 2Napier & Blakeley’s expertise in asset and development advisory provides an integrated approach to achieve the best results for sustainable property outcomes.

Our quantity surveyors, building consultants and engineers can plan and price works associated with improving the ESG performance of a building.

Sustainable investments achieve long-term financial growth where risks and opportunities are identified and managed through environmental, social and corporate governance or ESG.

Technical Due Diligence is a perfect tool to facilitate good property transactions, to initiate asset management and   to achieve investment goals.

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Developing Property to be Operations Ready

ready to goThe origins of ‘Operations Ready’ go back in time and relate to the military being ready to engage.

Property companies are turning to military like tactics to ensure property developments achieve the best possible performance at completion – and are mission ready for operations.

Whether property companies develop their own property or portfolios, procure by contracting or through  property acquisitions, they tell us of the challenges of navigating handover – through transition from construction to ‘taking ownership’ of the property – and the ongoing management requirements. Continue reading

Technical Due Diligence

Consistency, Clarity and Efficiency

Napier & Blakeley Due Diligence Reports are accepted by institutional grade investors – including REITS, super funds, sovereign funds, family offices, financiers and private equity globally.

We’re the market leader in the provision of Technical Due Diligence, demonstrated by the fact we’re involved in about 75% of all significant commercial property transactions to occur in Australia.

The key here is that a Napier & Blakeley Report is acceptable to all parties to a transaction.

Independence, Value, Risk Management and Upside

A Napier & Blakeley Due Diligence Report provides value to investors and their financiers as we are truly independent from the transaction, management or valuation of an asset.

We focus only on those financial matters, short to long term, material to the investment decision. Risk Management is facilitated by the allocation of probability of events occurring against their possible cost implications. This provides for a risk weighted expenditure forecast. Continue reading

Are Triple Net Lease Property Investments Risk Free?

Many property investors believe that triple net leased property investments make for good, safe, passive investments.

This can be the case, but there can also be serious financial consequences should they not be managed properly.

Triple net leases differ from traditional leases in that the tenant is generally responsible for all of the operating expenses including repairs, maintenance and life cycle capital expenditure – a new roof, air conditioning system, lifts, and the like.

However, there are risks to be aware of with such property. Triple net lease investments are often single tenanted properties, perhaps with a special purpose or use.

The commercial stability of the tenant is of course fundamental in any investment, but in a triple net lease are they also going to:

  • Take a proactive and planned approach to managing the asset?
  • Keep on top of property maintenance and life cycle repairs and replacements?
  • Fully understand what their obligations are?
  • Know how to live up to and manage their end of the bargain? Continue reading

Capex Planning Makes Property More Valuable

If you’re an Owner or Manager of commercial property you may well now be planning budgets and setting targets for the year ahead and beyond.

There are a number of questions to be answered:

  • What needs to be repaired, replaced or improved?
  • What are the priorities?
  • When does it need to be done?
  • What could safely be deferred?
  • How much will it cost?
  • What will be the return?

Napier & Blakeley can help answer all of these questions and more. Our expertise extends beyond Services Engineers, Building Consultants and Quantity Surveyors who have current cost information to produce cost estimates and property tax depreciation reporting aligned to the commercial goals of your business and intentions for the property.

Spending money is not all bad news:

  • Needs can be prioritised.
  • Cash flow can be improved through capital allowances and tax depreciation.
  • Valuations can be improved. Continue reading

Technical Due Diligence

Our Transaction & Asset Advisory professionals cover the core disciplines involved in the physical analysis of cost, risk and return of property acquisition, ownership and disposal.

We align our clients’ thoughts with our own and provide user friendly, accurate, meaningful and timely advice that is oriented to the commercial imperatives that actually matter.

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Strategy with the Sales Process

Those in the business of selling commercial property can achieve the best price within a short period of time through a staged approach to technical due diligence. 

The old adage of ‘buyer beware’ typically means that purchasers conduct their own technical due diligence which can uncover late in the day surprises relating to condition, deferred maintenance, non compliances with statutory obligations or capital expenditure needs. These may include deal breakers or points of negotiation on price and contractual conditions.

These late in the day uncertainties can be mitigated by vendors who take a staged approach to technical due diligence and where the end result, the technical due diligence report, can be assigned to the purchaser.  Continue reading