An investment company which is part of Bank of Ireland bought Galleri K for approximately DKK 1.1 billion. COWI has carried out technical due diligence for the buyer in close collaboration with the Danish law firm Bech-Bruun.
"The collaboration has been exceptionally good, and we have worked closely together to obtain the best conditions for the client", Stig Lohmann-Devantier, Market Co-ordinator in COWI, explains. Together with Laila Stub, Chief Project Manager in COWI, Stig Lohmann-Devantier has made a great effort to establish and maintain good contact to his partners. "The good collaboration and the knowledge of the partners' fields of work do not come into existence by itself".
Recently, COWI's Real Estate Due Diligence team visited the large law firms in Denmark and spoke with key employees in the transaction departments in order to get to know each other's fields of work. The team has arranged several future meetings with lawyers and commercial brokers about exchange of experience.
"A well-established collaboration makes it possible to move fast", Stig Lohmann-Devantier explains. "When this kind of transaction begins, things move fast". Within a deadline of about two weeks, COWI has made a technical assessment of the Galleri K building for faults and imperfections and has provided input in a format which Bech-Bruun can use in connection with the legal/financial aspects of the purchase.
Stig Lohmann-Devantier explains about the process:
"Colliers/CBRE were commercial brokers on the transaction, and we were also in close collaboration with the civil engineers working with the seller during the due diligence process. Knowledge of each other and knowledge of what the other consultants believe to be important enabled us to prepare the background material for the exciting transaction in record time".
COWI's due diligence work is based on understanding the client's risk profile in connection with the property transaction. The objective is to provide the investor with documentation of the risk factors that are connected with the investment. The documentation can be used in connection with improvement of the negotiations. According to Stig Lohmann-Devantier, COWI found several decisive factors which were included in the final negotiations of the Galleri K purchase.
Purchase of the former City Arkaden for approximately DKK 1.1 billion. The size of the shopping centre is 16,285 m2. The basement, which is mainly used for storage, is approximately 5,000 m2.
COWI carried out the technical due diligence.
December 2007 - January 2008
Bech-Bruun, legal advisor for the buyerColliers Hans Vestergaard, advisor for the buyerCBRE, advisor for the buyer
Bank of Ireland