Focus on German Real Estate
Due diligence in structuring and managing successful property transactions
The German real estate market continues to be driven by a strong boom in demand. Given the increasing shortage of supply, the performance of a thorough acquisition analysis is gaining increasing importance and the role of due diligence has become key.
The standard valuation approach ignores many specific opportunities and risks of the individual property. Questions such as these can often remain unanswered:
- How sustainable is net rental income?
- Which factors favour an increase of rental income over time, and which factors may lead to a decrease of net rental income?
- Are there any factors, e.g. maintenance backlogs, that lead to higher maintenance expenses than usually expected?
This issue of Real Estate looks at due diligence from the perspectives of both purchaser and seller, as well as from the financing banks.
- Legal due diligence – common risks in real estate transactions
- Requirements for real estate due diligence from the perspective of financers
- Financial due diligence for buyers and vendors
- Is tax due diligence necessary if the tax clause is to the advantage of the purchaser?