Acquisition
Our team provide thorough advisory support for clients interested in purchasing, selling, or investing in real estate assets (such as data centres and commercial buildings), including due diligence, acquisition strategy, cost assessment, and negotiation.
Phase 1: Pre-Acquisition Planning and Sourcing
Identify potential properties, align client objectives, and outline acquisition strategies to maximise value.
Client Consultation: Understand investment goals, risk tolerance, and asset criteria, including location, size, and technical requirements.
Market Research: Conduct regional and sector-specific market analyses to identify potential acquisitions, such as data centres and commercial buildings.
Sourcing Opportunities: Utilise Victor Henry Advisory’s network to source off-market and listed opportunities.
Preliminary Screening: Evaluate properties based on ESG compliance, infrastructure quality, and investment potential.
Phase 2: Due Diligence and Technical Assessment
Conduct thorough evaluations to assess asset quality, operational viability, and financial feasibility.
Building Condition Survey: Conduct a comprehensive inspection of HVAC systems, structural integrity, electrical installations, and data infrastructure.
Environmental & ESG Assessment: Evaluate compliance with energy efficiency standards, emissions regulations, and sustainability certifications, including LEED and BREEAM.
Operational Performance Analysis: Assess cooling systems, energy use, and maintenance records, particularly for data centres.
Cost of Refurbishment: Develop a detailed refurbishment budget that estimates the costs of maintenance, upgrades, and sustainability improvements.
Legal & Compliance Check: Ensure a clear title, zoning compliance, and fulfilment of lease obligations.
Phase 3: Risk Management and Strategy
Develop an acquisition strategy that strikes a balance between risk, cost, and long-term returns.
Investment Appraisal: Calculate Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period.
Cost Scenarios: Present the best, moderate, and worst-case financial models, taking into account refurbishment, compliance upgrades, and potential downtime.
Valuation Analysis: Compare market value vs. refurbishment cost to ensure a profitable acquisition.
Risk Mitigation Plan: Identify potential operational or regulatory challenges and propose corresponding solutions.
Phase 4: Negotiation and Deal Structuring
Secure favourable terms while ensuring that the acquisition aligns with financial and strategic goals.
Negotiation Preparation: Develop a negotiation strategy that emphasises asset value, identified issues, and refurbishment costs.
Stakeholder Engagement: Facilitate discussions between buyers, sellers, and legal teams to address key terms.
Deal Structuring: Provide advice on financing options, joint ventures, and equity partnerships as applicable.
Contract Finalisation: Oversee the drafting and execution of purchase agreements, warranties, and compliance clauses.
Phase 5: Post-Acquisition and Asset Management
Ensure smooth asset integration and long-term performance management.
Transition Planning: Develop a handover and operational continuity plan.
Immediate Maintenance and Upgrades: Prioritise urgent refurbishment needs identified during due diligence.
Asset Management Framework: Set up a maintenance schedule and performance monitoring system.
Long-Term Management: Implement energy efficiency measures to reduce operational costs and improve sustainability.