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

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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2016 in review and 2017 going forward

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We are already off to a busy start to 2017 with expectations of substantial Real Estate Investment activity in our region over the year ahead.

2016 saw many milestones for us and our independent and trusted advisory services, throughout which we worked on:

  • more than 600 technical due diligence reports for vendors, purchasers and financiers of property or development acquisitions. Our large national team allowing us to deliver more than 12 due diligence projects every week.
  • a significantly increased number of debt rollover re-financing due diligence projects for financiers of existing assets. Continue reading

Season’s Greetings from Napier & Blakeley

santa-present-beach-reduced2016 was quite an incredible year with significant global change and with it, new opportunities opening up for us here in Australia.

It was also another busy year for Napier & Blakeley, with our independent trusted advisory services again being in great demand from both local and offshore clients investing in Australia and SE Asia.

In 2016, we managed client projects across all states and territories of Australia and also in Singapore, Hong Kong, Indonesia, Sri Lanka, Fiji, The Maldives, Guam and New Zealand.

We would like to say a big thank you to all of our clients and send all of you and your families our Season’s Greetings.  We look forward to working with you again and to a successful and prosperous 2017 for all.

Our offices will close at 5pm on Friday 23rd December and reopen on Monday 9th January.

Should you have any urgent business during that time, please contact our Managing Director, Alastair Walker on 0419 503 289 or at awalker@napierblakeley.com. 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

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

Strategic Asset Management

Property owners are now emerging from survival mode and searching for opportunities. 

One of the first steps is evaluation and gaining a better understanding of their existing portfolios, to make the best of what they’ve got – given constraints on availability of finance.  Typically the portfolios are older, B grade and ripe for opportunity.

Strategic Asset Planning provides short, medium and long term views on minimising cost, managing risk and maximising returns through continued due diligence.

There is a positive trend towards this approach starting with understanding baseline data in terms of condition, performance and environmental and regulatory compliance in such a way that is cost effective, meaningful, useable and enduring.  It is vital to know what data needs to be collected and how it should be best used and managed for maximum effect. Continue reading

Where next for the Development Markets ?

Over the past few years, the Australian development market has been severely hit by the credit crisis by the reduction in primary lenders and also the remaining banks appetite (or sometimes lack of it) to fund anything that they deem to be “risky”.

“Risky” has taken on a whole new meaning in the last few years and as we’ve talked about before you could have the best site in town, with an award winning design and 100% pre sales – but this in some instances still proved too risky for the banks in an uncertain market going forward.

To be fair to the banks, we are seeing increased lending activity in some sectors of the market, generally not large builds but certainly in the up to $20m market and more recently to a limited extent in the $20m to $100m sector with some isolated builds over $100m, so some of the banks, at least seem to have a developing appetite for deals.

A significant issue raised by a number of banks, is the quantum and quality of equity being put forward by developers with lenders wanting to see “real dollars” as a means of mitigating their risk further. Continue reading

End of Year Investment Property Tax List

 Property Tax Deductions are available as follows:

  • Depreciation of plant – such as air conditioning and mechanical ventilation, some electrical items, lighting, carpets, lifts, furniture and fittings.
  • Building Structure (Capital Allowances) for investment properties constructed after July 1982, or for refurbishment, renovations, additions alterations after that date.

Now answer these questions…

  1. Have you got a current depreciation schedule? If not Napier & Blakeley are qualified to establish values for the depreciating assets that you own.
  2. Have you bought an investment property throughout the tax year?
  3. Have you altered, renovated or added to your existing investment property throughout the tax year?
  4. Have you demolished all or parts of your investment property?
  5. Have you changed, added to or thrown out any items of fitout or FF & E during the financial year?

The establishment of a compliant depreciation schedule allows you to calculate your entitlements to Depreciation and Capital Allowances deductions and to manage the process of change to your asset.  Continue reading