Portfolio - Case Study 2

Pre-Acquisition Surveys Mackay Properties Limited

Investment/Building Inspection Reports

Over a period of time we have inspected a considerable number of modern office investments for this client. The purpose of our inspection is to de-risk the purchase and ownership of the property. Knowledge and understanding enable the purchaser to make well considered judgements.

Most investment decisions are a balance between capital and revenue. Even where a building is fully let on a long lease, it must always be appreciated that things can and do change. The Landlord can suddenly, on occasion, receive a building back for re-letting and if there are ‘issues’ then this will likely cause financial losses or delays or both.

The existence of collateral warranties should not remove the need to inspect this is because an insurance claim can be both a long and costly process.

Our inspections therefore aim to consider the following main issues:

  • How well is the property constructed, including workmanship and specification levels? We are looking to minimise the risk of any adverse effect on building performance that may affect occupation.
  • Under the heading of specification, there are many considerations including for example: compliance with a design build or development contract, longevity issues and wear and tear, ease of maintenance, quality of handover documentation. We essentially check the specification is fit for purpose.
  • Under the workmanship heading we are looking to ensure the building is well constructed. This involves looking at each element critically to establish good practice has been followed. Modern materials and techniques require increasingly careful interpretation and application.
  • We also look to establish the building complies with statutory requirements, both in terms of Planning Approvals (aesthetic) and Building Regulation (physical) compliance. This will involve a review of available documentation followed by a thorough examination of the built form to establish shortfalls. The presence of a local authority Completion Certificate is rarely sufficient.

Footnote

Experience shows that very few buildings are well constructed from start to finish and problems are very rarely so apparent that a cursory inspection is sufficient. But armed with facts our clients can either account for those defects or look to the parties responsible to correct them.