Due diligence. Pre-investment analysis
Due diligence is a checkup of initial (or current) construction procedure state in the interests of an investor including presence and quality of constitutive, preliminary permission and engineering documentation. The analysis’ purpose is to study construction feasibility, real situation in investment construction project, determination of investment prospects, detection of the project’s hidden agendas.
Analysis’ volume depending on Customer’s purpose and objectives can differ from inspection auditing check to full assessment of the Object’s state aspects.
Checkup of investment construction Project starts with studying initial situation and accomplishment of control measures complex:
Determination of initial state of the Project
- Analysis of the Project’s purpose and tasks, project life;
- Studying of concluded contracts, contract commitments of present project participants;
- Verification of contract commitments, actual work results, outstanding disbursements;
Checkup of permit documentation / analysis of completeness, volume, work execution accuracy/:
- Constitutive documentation;
- Initial permit documentation for designing including Investor’s technical design specification, Urban planning (Architectural planning) assignment for designing, technical specifications for connection;
- approvals and expertise designing estimates;
- notification and permits for construction;
Analysis of project documentation:
- результатов инженерно-геологических (технических, экологических) изысканий;
- hecking the design documents for compliance with:
- Technical specifications for the design,
- Town Planning (Architectural and planning) assignment,
- Technical conditions,
- Normative legal documents defining completeness, volume, paper work accuracy;
- Standards of the corresponding real estate object classification;
- Quality and effectiveness (optimality) of design options
Analysis of estimate documentation for compliance with:
- Design concepts;
- Normative legal documents, acting in the territory of the Russian Federation;
- Price application accuracy of multiplying ratio, indirect costs norms.
Architectural and Functional design
According to the studying of investment prospects situation and Investor’s technical design specification checkup in relation to investment consideration of construction project, the SEVERIN group of companies develops Architectural and Functional design of the object. In the section Architectural and Functional design optimal business filing of real estate object (team of anchor and related tenants), effective correlation of lease and total object area are offered, and the following main technical and economic object performance are defined:
- Site area;
- Building area;
- Total building area;
- Underground and superstructure area;
- The number and layout of car places in the adjacent territory and underground parking
Object location specific character, urban planning specific character of particular city and region, developmental level of necessary engineering infrastructure, access to transportation, existing local administrative conditions are considered in the Design.
Real estate object development perspective is estimated by currently existing competitive landscape density, current demand, satisfied (unsatisfied) requirements in lease areas, lease rate range, market conditions including predictable region development prospects in the near 3-5 development years.
Total investment volume, predictable annual gross income, annual amount of exploitation and operating expenses, and total estimation of object energy consumption are calculated on the basis of space-planning solutions of the object Design.
The development of Architectural and Functional design is completed with object pay-off estimate including influence factor, conclusions about investment prospects of the project and recommendations about object development variants.
Architectural and Functional design includes textual graphic materials including explanatory note, floor plans, dimension plan, facades, maps, schemes, tables, diagrams.
