Arbitrage RE provided Technical Due Diligence advisory services to a leading hotel investment and management firm (the potential “Investor”) and its advisors in relation to a potential acquisition of a resort complex, located in Chalkidiki peninsula, Macedonia region, Northern Greece.
Arbitrage provided technical expertise in connection with an initial technical due diligence comprising of a red flag report and renovation investment cost estimate based on a set of defined specifications. The purpose of the technical advisory work was to inform the decision making of the Investor in respect of the acquisition of the resort complex.
The resort complex comprises two 4*and one 5* hotel, initially constructed during the 1970s and lastly renovated 10-15 years ago. The hotel properties were built on a land plot area of more than 140,000m2 and include a total buildable area of more than 73,000m2.
The technical advisory team focused on the “red flag” technical issues, especially on the planning and structural aspects as well as on the renovation costs. It advised on the following technical points related to the resort complex:
1. Reviewed of all the available technical and planning documents in the data room
2. Assessed the compliance with existing urban planning legislation and building regulations
3. Undertook a high-level topographical survey to assess the position and size of all buildings against the valid building permits of each of the hotel properties
4. Conducted a macroscopic structural evaluation
5. Overviewed the existing MEP installations and the current repairs state
6. Provided strategic input and technical assistance to the Consultant in relation to the potential refurbishment investment costs