Asset managers future-proofing the viability of property

Munich. The integrated approach to due diligence analysis developed by TÜV SÜD Industrie Service offers investors, developers and property owners a reliable basis for evaluating the viability of existing office and administrative properties and for certifying their sustainability. The TÜV SÜD experts will present their comprehensive range of services at Expo Real, held in Munich from 4 to 6 October, where they can be found in Hall C1/Stand 443.

Despite the spread of sustainability certificates, a key topic of discussion in the property sector continues to revolve around reliable criteria for assessing sustainability in portfolio properties as part of modernisation, refurbishment and revitalisation plans. In addition to energy efficiency, important factors in drawing up future-proof building utilisation profiles are the building concept, its location and the potential presence of pollutants. "A sustainability analysis of existing properties is not only designed to preserve their value but must also identify potential areas of securing marketability", points out Dr. Stefan Heuß, head of the Energy Efficiency Center of Competence at TÜV SÜD Industrie Service.

Using its extensive experience in real-estate due diligence as a basis, TÜV SÜD has developed an integrated valuation system made up of around 150 informative criteria in five assessment categories, including the situation with respect to thermal and electrical energy, the architectural design of the building, building service equipment and potential opportunities for change of use. The analysis also examines the building materials used, the possible presence of pollutant loads and property-specific details of the building's attractiveness and environment. The real-estate due diligence also forms a reliable basis for possible certification.

Analysis tool in preparation for transactions

The integrated sustainability analysis enables valuation risks which may result from unscheduled refurbishment measures or other initially unforeseeable operating costs to be identified at an early stage.



Dr. Stefan Heuß explains, "For investors and portfolio managers, our analysis tool for strategic property management pinpoints a comprehensive array of strengths and weaknesses of a property." The plausibility analysis of existing documentation alone can provide investors, developers and owners with a clear overview of the actual condition of a property and any weak points, bringing transparency to issues such as whether details of areas given in plans are correct, whether the insulation materials used correspond to planning specifications and whether the information in the building's energy pass is correct. In addition, the transparency of information succeeds in extending the group of prospective purchasers, strengthening the seller's position in negotiations and smoothing the overall transaction process.

As the complexity of these wide-ranging aspects is almost impossible to cover in depth by a single sustainability auditor, TÜV SÜD provides its integrated due diligence services by networking the specialist areas of structural engineering, electrical engineering and building services, environmental technology and real-estate valuation. "By applying an inter-disciplinary approach in our analysis, we establish a basis for reliable sustainability certification, while also pointing out methods of future-proofing the property's viability", explains Dr. Stefan Heuß.

TÜV SÜD Lecture Forum at Expo Real (Monday, 4 October, 10.00-11.30 am)

• Due diligence approach in valuing portfolio properties (length 20 min.) Speaker: Dr. Stefan Heuß. Location: Conference Room B12
  
• Quality assurance in international construction projects abroad (length 20 min.) Speaker: Dr. Joachim Junggunst. Location: Conference Room B12