Amendments such as introduction of GST tax regime, granting infrastructure status to logistics, ‘Make in India’ initiative coupled with consumption lead demand from e-commerce, 3rd Party Logistics (3PL), organized retail and manufacturing has created demand for larger and better quality assets capturing the attention of developers and investors. The land with minimal risk factors, clear titles & best location for these Industrial Parks is a challenge and requires careful assessment.
Colliers was appointed by an investor to provide technical advice for their interest in buying stake in an Industrial Parks portfolio spread across strategic micro-markets in India. The portfolio consisted of large land parcels partly developed with warehousing facilities and with additional land for future development and few are only land parcels. Colliers experts had to evaluate and validate the extent of possession of land area with the developer, audit of built warehouses, establish the future potential to build, cost & time to complete the development.
Colliers dedicated Technical Due Diligence (TDD) team conducted the site visits. Our in-house Architects conducted detailed analysis of the land extent wrt to the developed areas from a statutory compliance as well as functional perspective and validated the future development potential of each property. Land Surveys were conducted to assess the risks related to the land and to establish the potential for future development. Multiple meetings were conducted between the developer’s team, liaison consultants & Colliers Experts to discuss the deviations and to conclude the land part along with assets diligently.
Each land parcel had undergone a comprehensive review based on its location, survey numbers, nature of proposed business and industry, topography of the property, approach road width etc., and the findings were recorded in the form of reports. Our experts identified deviations in the land proposed to our client based on the physical land survey, superimposed on the revenue documents with land records. We also identified the utilities supply stations like water, electricity, nearby market places, railway & highway connectivity, construction facilities, etc, which helped our client to make a conclusive decision on the property. The detailed analysis was done on built structure cost, specifications, future development strategy and timeline. The team led detailed workshops along with all stakeholders and recommended options to regularize the deviations.
The Colliers analysis and recommendations helped the client in understanding the anticipated risks & challenges and potential development in the proposed land deal and the required precautions to be taken to safeguard the investment. Our TDD Team understands the language and needs of our clients and is capable of focusing and filtering the required information. Proactive single window approach adopted for comprehensive technical evaluation of property has helped Colliers in being a market leader in offering Technical Due Diligence Services.