Due Diligence -services

TDD, EDD, and ESG DD services minimize the risks of real estate transactions.

We offer all the due diligence services necessary for buying or selling properties with experience in several domestic and international locations.

Through Sustera, you’ll receive:

• Technical Due Diligence reports
• Environmental Due Diligence reports
• ESG Due Diligence reports

Technical Due Diligence (TDD)

In Technical Due Diligence (TDD), we assess the current condition and future maintenance needs of properties. Properties are inspected by three experts in building, HVAC (Heating, Ventilation, and Air Conditioning), and electrical engineering. The result is a maintenance plan with cost estimates.

During the assessment, we investigate aspects of the property including:

• Usage, maintenance, and repair history
• Urgency-ordered repair, replacement, and improvement measures
• Familiarity of property managers with the property
• Legal requirements related to building permits, zoning, and periodic inspections.

TDD and transaction insurance

TDD and transaction insurance provides protection for the seller’s transaction process. The insurance covers issues related to the technical condition of the real estate portfolio. A TDD report issued by Sustera is required for coverage

The insurance coverage limits range from €10 million to €40 million. Deal size is up to €200 million. For larger transactions, a separate underwriting and pricing logic will be adapted. The policyholder is the seller of the property. The insurer is an insurance company Lloyds, operating independently of Sustera. For insurance matters, Nordic Broker is at your service.

Environmental Due Diligence (EDD)

In Environmental Due Diligence (EDD), we assess the environmental risks of properties. Through Susteran, you’ll receive Phase 1 and Phase 2 environmental assessments (EDD1 and EDD2). We are knowledgeable about environmental legislation in various countries.

During the assessment, we investigate aspects of the property including:

• Asbestos and other hazardous substances
• Radon levels
• Air emissions
• Noise pollution
• Current status of soil and groundwater
• Regulatory requirements
• Previous environmental studies and conservation measures

ESG Due Diligence (ESG DD)

In ESG (Environmental, Social, Governance) Due Diligence focusing on sustainability aspects, we evaluate the current status, risks, and potential of property-related sustainability practices.

The scope of ESG DD assessment can be tailored according to needs and may include examinations such as environmental certification, energy efficiency, compliance with EU taxonomy, carbon neutrality, as well as scrutiny of social and governance-related risks.