We were instructed to undertake independent technical due diligence on a six-storey Grade II listed office building in connection with a proposed acquisition.
The client required an assessment of the property’s condition, statutory compliance considerations and likely future capital expenditure to inform the acquisition decision and investment appraisal.
The building’s listed status introduced additional considerations, particularly in relation to the repair, alteration and replacement of historic building elements.
The instruction involved a multidisciplinary assessment of the building fabric, mechanical and electrical services and fire safety arrangements.
The assessment considered the condition of the principal building elements, the available compliance information and the implications of identified defects and anticipated expenditure.
Particular attention was given to distinguishing immediate remedial requirements from planned replacement and longer-term maintenance liabilities.
The findings were incorporated into a costed five-year capital expenditure forecast to provide the client with a structured basis for evaluating future expenditure alongside the proposed acquisition.
The inspection identified roof coverings and rainwater goods approaching the end of their serviceable life.
The anticipated replacement requirements were considered within the five-year expenditure forecast, allowing the client to distinguish immediate maintenance needs from planned capital works.
The building’s Grade II listed status introduced additional constraints on proposed alterations and replacement works.
Potential façade and window works required consideration of listed building consent, with implications for specification, procurement, programme and cost.
The assessment identified gaps in fire compartmentation between refurbished and original floors.
These findings required consideration as part of the building’s wider fire safety and compliance position, including the potential need for further specialist investigation and remedial works.
The identified defects, anticipated replacement requirements and compliance considerations were brought together within a costed five-year capital expenditure forecast.
This allowed the client to assess the likely financial implications of ownership and incorporate future works into the investment appraisal.
The technical due diligence assessment provided the client with an evidence-based understanding of the building’s condition, compliance considerations and anticipated capital expenditure.
The findings informed the acquisition appraisal and supported a revised offer reflecting the identified works and associated liabilities.
Technical due diligence is not simply a record of building defects. Its purpose is to establish the condition, risks and likely liabilities associated with an asset so that these can be considered alongside the commercial terms of a transaction.
For listed buildings, the assessment also needs to recognise that otherwise straightforward repairs or replacements may be subject to additional statutory controls, specialist requirements and associated costs.
Bringing condition, compliance and capital expenditure information together allows the findings to inform acquisition decisions rather than remain separate technical observations.
This approach forms part of our wider building surveying and technical due diligence work.
