Energy infrastructure due diligence for a US real estate portfolio
Assessing infrastructure risk and capital requirements across a US real estate portfolio ahead of a potential transaction.
The challenge
URBS was engaged to assess a multi-asset real estate portfolio across the United States ahead of a potential transaction. The buildings varied in age, condition and local requirements, making it difficult to compare infrastructure risk and investment priorities consistently across the portfolio. The assessment needed to look beyond reported energy performance and determine what each asset would require to meet the investor’s environmental and investment objectives. This meant identifying weaknesses within the existing infrastructure and establishing the likely scale of intervention and capital investment required.
The system approach
URBS developed a common technical framework and applied it to every asset using available building information and on-site walkthroughs. For each property, we identified the critical infrastructure gaps, defined the interventions required and estimated indicative capital costs. We then consolidated the findings at portfolio level, distinguishing recurring issues from asset-specific risks and showing where the greatest technical and financial exposure was concentrated. The resulting assessment gave the investor a consistent basis for evaluating the transaction and planning future capital investment.