Pre-Acquisition Due Diligence and Investment Analysis
Acquiring commercial real estate is a big decision; therefore, due diligence can help mitigate potential financial and physical risks and give confidence in your investment decision.
Pre-acquisition is generally commissioned by an individual or organisation contemplating the purchase of an interest in a property, whether leasehold or freehold, to determine factors that would influence the decision regarding the suitability of the eventual purchase price
The due diligence process involves reviewing and evaluating critical details that determine property nature, condition, estimated income and operating expenses.
Our due diligence and investment analysis key services include:
- Location analysis
- Rental and Sales Comparable analysis
- Property income valuation and market research
- Condition assessment (identifying defects that need urgent attention and issues that need further investigation)
- Investment Value advice
- Cash flow analysis and modelling
- Income / Vacancy risk analysis
- Competitive information on how the property compares to other relevant properties
- Scenario modelling and sensitivity analysis based on our client’s objectives
Importance of Investment Value & Analysis
It is important for potential property buyers to ensure that their potential property projected price meet or exceed their anticipated Target Rate of Return (TRR) and, also provide adequate security of income. Investment Value analysis allows investors to make an intelligent purchasing decision that is in line with their investment objectives.
Large Commercial Real Estate Investment Value is directly related to its present and future income and for capital growth. Getting all the financial details and understanding them is where the property analysis report comes in