Arbitrage Real Estate was assigned a mandate to perform the technical due diligence of a 61,500m² commercial property portfolio consisted of big-box retail buildings in Athens and in Northern Greece. The technical due diligence was done on behalf of the interested buyer, a major domestic institutional REIC.
Arbitrage role was to review the buildings in terms of structural quality and repairs, to assess conformity with planning regulations and building standards as well as of compliance with current environmental and H&S standards. In addition, an energy audit has been carried out at the buildings electrical and mechanical equipment and infrastructure to identify the energy efficiency potential. Arbitrage also investigated associated risks from poorly equipped and maintained building equipment.
In cooperation with LDK Consultants and Delphis SA, the working team comprised of 12 experts including a project manger, specialist engineers, surveyors and technicians.
A technical due diligence report was handed out to the investor that included among other things detailed reference on derived facts and figures accompanied with a SWOT analysis and an indicative costing of remedial actions. Based on the planned investment holding period, energy efficiency potential was highlighted in conjunction with the impact of future operational and maintenance costs on NPV (>€5 million calculated in total). Our advice informed the investor's acquisition bid.