Methodology
What we examine.
A structured review separates commercial, financial, operational, technical and legal considerations. Exact scope depends on the country, the investment type, the documents available and the package selected.
The People
- Promoters
- Developers
- Directors
- Managers
- Brokers
- Related entities
- Past projects
- Litigation or regulatory history where legally searchable
The Property
- Location
- Ownership
- Title
- Liens
- Debt
- Permits
- Construction status
- Physical condition
- Local comparables
- Rental demand
- Market liquidity
The Structure
- Investor's actual legal interest
- Direct ownership versus shares or contractual rights
- SPV structure
- Priority of claims
- Voting rights
- Control rights
- Transfer restrictions
- Exit rights
- Guarantees
- Collateral
- Escrow
The Numbers
- Acquisition price
- Development cost
- Financing cost
- Fees
- Commissions
- Property management
- Taxes
- Insurance
- Maintenance
- Vacancy
- Rental assumptions
- Return calculations
- Exit price assumptions
- Currency exposure
The Documents
- Differences between marketing and contracts
- Missing terms
- One-sided provisions
- Choice of law
- Jurisdiction
- Dispute resolution
- Cancellation rights
- Additional capital obligations
- Default provisions
- Developer discretion
- Limitations of liability