Empowering you to invest in real estate without the risk
Manage third party development risk with development monitoring. It’s an essential due diligence and governance discipline for clients with an interest in a real estate development project they don’t control directly. You might typically be a funder, investor, JV partners or an occupier, in which case development monitoring is for you.
We always start with a detailed review of the scheme, coupled with an assessment of your interest, objectives and risk profile so we can represent you effectively. Rigorous scrutiny throughout ensures risks are being assessed and managed. We have different approaches designed to suit property investors, lenders and occupational clients. We also have a range of complementary specialisms including building services engineering, facade consultancy, capital allowances and environmental advice that we can bring to the table.
Overseeing more than £4 billion of development, our team has expertise in real estate development across all the major asset classes to represent your interests throughout the development process. In addition, being part of the world’s largest real estate advisory firm means that we have immediate access to subject matter experts in every discipline that makes up the development process. This gives us an unrivalled deeper understanding of real estate development allowing for a holistic and pragmatic approach to assessing and managing development risk.
Main Contacts
Development Monitoring Services
Monitoring for Funders
Providers of development finance need to know their funds are secure and where this may be compromised, where development risks are coming from on any given scheme. They will look to expert technical advice typically in the form of a project monitor as part of their advisory team that will include lawyers and valuers. Using our knowledge of development and construction, we advise extensively on funding transactions in the low seven figures to north of £½ billion.
Services for funders, such as banking clients, are characterised by considerations of development cost, cash flow, maximum commitment, compliance and contractual recourse. The defined duration of most development funding commitments tends to place emphasis on the construction stage and immediate post-construction period, but whilst having due regard to the wider aspects of a development and the exit route. Key features include:
- Funding agreement terms
- Development cost and maximum commitment
- Specification and cost benchmarking
- Cash-flow and progress
- Statutory compliance
- Contractual reliance and recourse
- Certification of development finance
- Third party commitments
Contact: Ash Hirani - Senior Director, Devlopment Monitoring | [email protected]
+44 20 7182 3584
Monitoring for Investors
Purchasers of investment assets look at acquiring schemes during their development phase often to secure an advantage in the market place. Seeking to make a commitment at the riskier stage of a property’s life cycle, they need to know that the development will be delivered through to completion smoothly, and crucially, without compromise to quality of the asset. Combining our detailed technical design and construction expertise with our development know how, we advise investors across the scale on their investments.
The commercial position and potential risk exposure of investment clients often requires full due diligence and monitoring duties. Services often span the detailed design and implementation stages of a project and will include cost and development finance monitoring functions, where a client has entered into a forward-funding commitment. An investor’s long-term interest in the completed asset will require emphasis on aspects of market appeal and enduring investment value.
Depending on the requirements of the project we can draw upon specialist in-house mechanical, electrical and façade engineering expertise to complement our core monitoring functions.
The key features of our service for investment clients include;
- Development agreement terms
- Detailed design review
- Development cost and maximum commitment
- Specification and cost benchmarking
- Cash-flow
- Programme and works progress
- Specification compliance
- Works Quality
- Statutory compliance
- Contractual reliance and recourse
- Certification of development finance
- Building commissioning and handover
Contact: Stephen Flower - Senior Director, Devlopment Monitoring | [email protected]
+44 20 7182 2385
Monitoring for Occupiers
Occupiers of property can look to commit themselves to the leasing of a building during their development phase to secure a timing advantage and/or meet timescales of an occupier’s real estate strategy. The making of such a commitment needs to be negotiated with expert representation on technical and commercial terms. Then having made a commitment, occupiers need the comfort of knowing that the developer is on track to deliver the project on time and to the required quality with occupier specific requirements fully thought out and captured. Combining our detailed technical design and construction expertise with our development insights, we can advise occupiers giving them the comfort and confidence they need.
Occupational clients attach particular importance to the suitability, quality and performance of the completed building. Timely delivery is paramount for reasons of business continuity. So is the relationship between the base-building and a tenant’s installations, as this can affect the future fitting out and operation of the building. Our services for occupational clients therefore place emphasis on;
- Lease agreement terms
- Design suitability
- Specification compliance
- Programme progress
- Works quality
- Contractual reliance and recourse
- Building commissioning and handover
Contact: Stephen Flower - Senior Director, Devlopment Monitoring | [email protected]
+44 20 7182 2385
Case Studies
Brookfield
100 Bishopsgate
Safeguarding construction finance
