Due diligence
Real estate acquisitions and sales are situations with inherent risk. Our due diligence process provides impartial information to support your decision-making.
We help minimise the risks associated with acquiring and selling both individual properties and extensive property portfolios, while also streamlining the transaction process.
Who is the Due Diligence service for?
Property seller
The law requires the seller to disclose all essential information about the property to the buyer. An independent and high-quality due diligence assessment speeds up the sales process when all factors influencing the purchase decision are presented clearly and reliably.
Property buyer
Before making a major decision, a comprehensive and impartial understanding of the property and its conditions is crucial. It is important to identify any previously unknown risks and assess whether the property aligns with your property strategy, including aspects such as sustainability.
Outcome: what does the Due Diligence process include?
The assessments, analyses and reports prepared by our experts give you a comprehensive and impartial understanding of the property subject to the transaction. The outcome is an independent expert view of the property’s technical condition, environmental risks, energy efficiency and sustainability.
In the acquisition or sale of existing properties, we ensure that all essential information is identified and brought forward before the transaction is completed. During the acquisition process, we are also ready to support the property handover after the deal.
For properties under construction, we assess the project’s risks and responsibilities throughout the development phase. After completing the due diligence assessment, we can help ensure that construction proceeds in accordance with what was agreed in the property transaction.
TEDD for excisting properties
Regulatory review
For example, zoning details, building permits and easements.
Technical condition assessment
A comprehensive assessment carried out by experts from various technical disciplines, providing a clear picture of the property’s condition.
CAPEX assessment
We evaluate the maintenance and repair projects needed for the property over the next 10 years.
Environmental risk assessment or survey
We identify and review the environmental risks related to the property.
Operational cost analysis
We assess the property’s cost efficiency from a maintenance perspective.
Property tax review
We verify the basis of property taxation for the asset or portfolio.
ESG assessment
We analyse the energy efficiency potential and certification readiness of the property. The assessment includes an EU Taxonomy review, climate risk analysis, CRREM analysis and a biodiversity assessment.
Area measurements
We verify the actual floor area of the property.
Energy certificate
If the property does not have a valid or up-to-date energy certificate, we prepare one.
TEDD for construction projects
Zoning details, building permits and easements
Review of technical designs
Review of project and contract documents
EDD environmental risk assessment and climate risk analysis
Biodiversity assessment
Owner’s representation and project monitoring throughout the construction phase
Monetising the risks in property transactions
During the due diligence process, we assess and quantify the property’s technical and environmental risks in monetary terms, making it easier to address them during negotiations between the parties. The most significant financial risks in real estate transactions can relate to contaminated soil, where potential costs may be substantial.
Risk factors connected to safety and health can also have major impacts on the property’s usability and costs. For example, if mandatory periodic inspections have been neglected or the property has issues related to indoor air quality or fire safety, a minor incident can lead to major consequences.
Due Diligence process – step by step
Initiation
- Definition of objectives, scope and schedule
- Collection of initial data
Information gathering
- Review of available documentation
- Site inspections and interviews
- Consolidation of insights from technical disciplines
Initial findings
- Immediate communication of any concerning red-flag observations
Reporting
- Action recommendations
- Cost implications
- Quality-assured TEDD reports
- Review of findings together with the client
Final steps
- Incorporation of identified issues into the transaction agreement, if needed
- Reliance letter process
Support throughout the entire property transaction process
In acquisition and sales situations, you have access to our experts throughout the entire transaction process. Our TEDD services can be fully tailored to your needs.
Our services for property acquisitions and sales are based on active, ongoing consultation, ensuring you receive up-to-date information at every stage. All work related to the DD process is strictly confidential. We handle, protect and name each DD project with great care.
OUR STRENGTHS
ESG assessments
Granlund’s environmental experts produce high-quality sustainability assessments that help you form a clear understanding of the property’s current level of responsibility, its development potential and any related risks.
Our ESG assessments cover evaluations of energy efficiency potential, certification readiness, EU Taxonomy alignment, climate risk analysis, CRREM analysis and a biodiversity assessment.
Get in touch — we’ll help you minimise the risks in your property transactions!
Jari Loukiainen
Ritva Rissanen
Valtteri Saariaho
Lauri Partanen
Ask for more information or request a quote
Tell us about your project or what kind of service you need. We will get in touch with you shortly.
Find your nearest contact person
Subscribe to our newsletter
Be among the first to hear about the latest news and trends relating to Granlund and the real estate and construction sectors.