Legal Due Diligence

Easements/Encroachments Identify site encroachments and boundary issues
Environmental Listing Determine environmental risks with the site and search the Environmental Contaminated Site Register (EMR/CLR)
Leases/Licenses Review terms and conditions of all leases and agreements
Native Title/Heritage Listing Determine if the site is free from heritage or 3rd party claims
Title Searches Investigate title for freehold/leasehold issues and risks
Vendor/Company Searches Confirm vendor has legal right to sell the property
Witness Transactions Independently witness a transfer of property between parties under the Land Title Act 1994 and Land Act 1994
Zoning/Restrictions on site Confirm building compliance and current use to Local Zoning

Financial Due Diligence

Asset Schedules Confirm assets included/excluded from a transaction
Capital Expenditure (CAPEX) Review capital expenditure and input to IRR calculation
Operational Expenditure (OPEX) Review income and expenditure for market analysis
Development Feasibility Assessment Hypothetical development feasibility assessment and valuation
Financial Management Plans Develop long-term financial management plan and produce financial models
GST Audit Audit all GST collectable and reconcile to GST payments
Income/Rent Analysis Review the lease summary for net and gross income
Independent Valuation Determine market value (or fair value) of property
Land Tax Issues Review valuation and calculations at time of purchase or revaluation
Lease Disputes Investigate all current lease disputes for financial impacts
Mortgaged Assets Confirm mortgages on property assets
Profit & Loss Statements Review last profit and loss statement for abnormalities
Rate Notices (Statutory) Review current rate notice/outgoings and recoveries
Rent Reviews Check pending rent reviews/conditions and incentives, Determine market rent – independent valuation
Rental Arrears Audit rent receipts to confirm income and arrears
Revenue/Expenditure Forecast Review income and expenditure with sensitivity analysis
Side Agreements Investigate any side agreements and other income streams
Sinking Funds Check sinking fund contributions and projected expenditure, Determine appropriate sinking fund allowance
Tax Depreciation Schedules Review latest taxation depreciation schedule or develop new tax depreciation schedule (simplified or complex)
Vacancies/Temporary Leases Confirm conditions of temporary leases and passing rent

 

Technical Due Diligence

Asset Register (FAR) Construction Development of a new Fixed Asset Register (FAR) or re-structure of existing FAR
Asset Insurance (Replacement) Value Estimate building insurance and asset replacement value, including cost estimates for debris removal and lead time
Asbestos Risk Identification of possible asbestos containing materials (ACM) and removal of non-friable ACM
Building (NLA) Areas Confirm NLA floor area survey to PCA & API guidelines
Building Condition Assessment Visual inspection of building components for deterioration and failure risk
Building Performance Assessment Review building performance requirements, gap analyses, and benchmarking of asset components
Disability Discrimination Act DDA Compliance audit for buildings and facilities
Environmental Risks Check EPA (EMR/CLR) Registers for contaminated site listing
Facade/Cladding Risks Visual inspection of facade for deterioration and failure risk
Historic Site Listing Risks Check statutory listing for heritage status of site or neighbouring site
Life Cycle Costs Calculate remaining life and CAPEX forecasts, preventive maintenance tasks, schedules and OPEX forecasts
Market Research Report Review, forecast and report trends in property / construction market
OH&S Compliance Review of building OH&S risk and propose remediation strategies
Plant & Equipment Lists Review the equipment register for depreciable assets
Flood Risks Review site’s susceptibility to flood
Security Assessment Review site’s security and risks
Site Selection Analysis Analysis of required property and assessment of alternatives
Structural Risks Inspect accessible structure for cracks, water damage and concrete cancer etc
Zoning Compliance Check DA approvals to confirm Zoning compliance