As an RICS-regulated firm, our overseas client knew they could confidently rely on Prendos to provide an impartial and professional TDD assessment of a South Island storage property they were planning to purchase. The term ‘technical due diligence’ (TDD) is generally adopted for this type of survey, and when carried out by an RICS member or RICS-regulated firm, TDD consists of the systematic review, analysis, discovery and gathering of information about the physical characteristics of a property.
With TDD engagements, our aim is always to provide a concise, clear report that gives a balanced and professional opinion of the condition of the property. This is especially important for our overseas clients, for whom access to the property may be restricted due to proximity. With clear guidance from a Chartered professional on the ground in NZ, we enable our client to make an informed assessment of the technical risks associated with their overseas acquisition.
Thanks to our nationwide presence, one of our senior Christchurch-based Building Surveyors carried out the inspection on this property. While the recently constructed building was generally found to be well designed with high occupancy, our investigation identified a number of defects and deficiencies that could impact the asset’s performance in immediate, short, medium or long term.
Identifying defects and deficiencies in a building is one aspect of TDD. But more importantly, our reports also consider the level of impact each may have, and recommend solutions. Our TDD report therefore provided a basis for our client to negotiate a fair purchase price for the asset. It also allowed them, upon acquisition, to address the issues in a planned way, minimising disruption to the users of rented storage spaces, which are accessible 24/7.
As part of our TDD engagement for this property, we also provided a 30-year CAPEX and repairs and maintenance (R&M) plan, offering a level of protection for our client, their investors and funders.
As a result of engaging Prendos to carry out TDD, our overseas client was made fully aware of the technical risks and liabilities of this transaction. They were able to rely on our report to satisfy their fiduciary responsibility to their stakeholders that all reasonable risks, liabilities and cost implications were fully understood, and move forward with the transaction in confidence.
If you’re considering acquiring or divesting property in New Zealand, talk to our RICS-regulated Building Surveyors today about expert Technical Due Diligence (TDD) services. Call +64 9 970 7070 or email prendos@prendos.co.nz.
The term ‘technical due diligence’ (TDD) is generally adopted by our industry, but ‘pre-acquisition survey’, ‘vendor survey’, ‘building survey’ or ‘building condition assessment’ are also often utilised.