Hampton Jones Provides TDD Reports for Auckland’s Largest Property Deal
Hampton Jones Provides TDD Reports for Auckland’s Largest Property Deal
GIC engaged Hampton Jones to perform Technical Due Diligence Reports for Auckland’s Largest Property Deal with a total worth of over $2.1 billion. Hampton Jones was involved in providing technical due diligence reports for two malls, including St Lukes and Newmarket, as well as Auckland’s Viaduct Corporate Centre, Air New Zealand Building and Fonterra Building. These reports were used to assist with the decision making process and allowed GIC to make an informed purchase. GIC now owns 49% share, in these properties.
Brian Jones, Managing Director, Hampton Jones Property Consultancy says:
Long term investment in New Zealand commercial property rivals amongst some of the best in the world.
Our developed market, building standards and ease of transactions is attracting international investors, which is great news for New Zealand.
Hampton Jones’ in-house team undertook a comprehensive building, structure, services, compliance and sustainability review of the buildings, as well as rebuild cost assessment and ten year capex forecast of each building. Hampton Jones continues to advise GIC on a Development Monitoring basis for the Fonterra Building.
Technical Due Diligence is necessary to establish the attributes of a building and the broad cost of maintaining the asset. The fabric and the building services of a building may have a life less than 25 years, but represent over 50% of the capital value associated with a building’s construction cost.
Identification of faults that stem back to the original design, compliance requirements that have changed since the building was built,
and building defects and shortfalls in maintenance are assessed and assigned budgets.
The associated costs can then be used to develop a Capital Expenditure (CAPEX) plan which allows the cost of owning the building over a 10 year period to be used in the purchase negotiations.