Due diligence (DD) is “asset valuation” conducted during real-estate transactions. It consists of physical, economic, and legal surveys, where experts investigate and examine real estate from various perspectives to evaluate its value properly as an investment.
Engineering reports (ER) are conducted as part of the physical survey of DD. They consist of building status surveys, earthquake risk surveys, environmental risk surveys, etc. They involve quick and neutral investigations based on limited information from documents and visual inspections.
Takenaka can provide a wide range of services from ER preparation to the overall coordination of DD operations.
DD support in every aspect of a building life cycle
We provide support for DD operations performed for the strategic use of real estate and business development in all phases of a customer's building life cycle, during development, completion, operation, renewal, and reconstruction with our comprehensive capabilities including ERs.
This is due to the growing need for corporate real estate (CRE) strategy, compliance (CSR), business continuity planning (BCP), sustainability (SDGs), and long life for real estate as a financial product, and there is a growing demand for reliable ER in DD evaluation.
As an ER pioneer
Takenaka Corporation has been recognized for its early involvement in ER since the latter half of the 1990s. We have taken a leading role in activities aimed at the development and spread of ER, cultivating trust as a pioneer in Japan.
ER survey menu
Building status survey
Building and equipment degradation diagnosis
Diagnosis is conducted by examining documents, virtually inspecting the building, and interviewing the building manager.
Repair and renovation planning
Short-, medium-, and long-term risks are calculated based on the age of a building, construction history, and degradation diagnosis.
Replacement cost
The approximate cost of constructing a new building is calculated at current construction costs, and this is used as an index for various risk assessments.
Legal compliance survey
The building's compliance with laws and regulations is checked through verifying application documents and visually inspecting the building.
Seismic risk survey
In ER, seismic risk is assessed in terms of economic loss, and its index, probable maximum loss (PML), is calculated.
PML (probable maximum loss)
This is the ratio of the estimated restoration cost to the replacement cost of a building due to major earthquakes occurring approximately once every 500 years.
Portfolio PML
The seismic risk of multiple building groups can be assessed, considering risk mitigation through building dispersion.
Environmental risk assessment
Under an ER, an environmental risk assessment is performed, examining the risk of health hazards due to toxic substances contained within the building or on the land.
Environmental risk assessment
The usage status of toxic substances (asbestos, PCB, CFCs, etc.) is examined in the building.
Soil environmental risk assessment
The risk of soil pollution on the site is determined by a land-use history survey.
The next phase of sample collection and analysis survey is conducted if necessary based on the results of the environmental risk assessment
ER can also be used to help organize multiple real-estate properties.
We help our customers prioritize whether to continue to use, renovate, or rebuild their multiple real-estate properties, and provide comprehensive support for specific implementation planning, design, and construction.
We will bring together solutions from the Takenaka Group, including Takenaka Civil Engineering (civil engineering field) and Asahi Facilities (building management field).
Partnering with our customers, we can perform various investigations, studies, and proposals using ER. Please feel free to contact us.
