Site Development Transaction Support

Site development transaction support refers to the expert advice and due diligence services provided to clients who are acquiring, disposing of, or financing land and property assets. It is important because these transactions involve complex legal, technical, and commercial considerations that can significantly impact the value, risk, and feasibility of the development project.  

By engaging site development transaction support services, you can make informed decisions based on a comprehensive understanding of the site’s environmental, geotechnical, and planning conditions, constraints, and opportunities. This helps to minimise risks, optimise returns, and ensure the successful delivery of the development project. 

The key elements of environmental due diligence for redevelopment include: 

• Data room review: Examining the available information on the site’s history, environmental records, and previous investigations to identify potential contamination issues and data gaps. 

• Site assessments: Conducting site visits and inspections to assess the current site conditions, land use, and potential contamination sources or pathways. 

• Targeted interviews: Engaging with key stakeholders, such as current or former site owners, operators, or regulators, to gather additional information on the site’s environmental history and status. 

• Liability and cost estimates: Develop preliminary estimates of the potential environmental liabilities and remediation costs associated with the site, based on the available information and professional judgment. 

• Financial modelling inputs: Providing inputs into the client’s financial models, such as cash flow projections and net present value calculations, to assess the impact of environmental risks and costs on the project’s viability and returns. 

• Commercial and financial advice: Providing clear and concise advice to the client on the environmental risks and opportunities associated with the redevelopment project, and recommending strategies for managing and mitigating those risks. 

The purpose of a pre-acquisition opinion report is to provide a preliminary assessment of a site’s constraints and opportunities to assist clients in assessing site value and identifying areas that may require further assessment prior to exchange or completion of a property transaction. The report typically covers a range of issues, such as environmental contamination, geotechnical conditions, flood risk, ecology, demolition requirements, and planning considerations.  

The opinion report is based on a desk-based review of available information and a site visit, and provides a concise summary of the key findings and recommendations for further due diligence or investigation. The report helps clients to make informed decisions about whether to proceed with the acquisition and on what terms, and to budget

A site investigation may be necessary during the due diligence process when desk-based activities, such as data room review and site assessments, identify unacceptable or uncertain risks that require further assessment or quantification. For example, if the desk-based review indicates a history of potentially contaminative land uses on or near the site, but there is insufficient information to determine the extent or severity of any contamination, a site investigation may be recommended to obtain more definitive data. Similarly, if the site is located in an area with known or suspected geotechnical hazards, such as unstable ground or shallow mineworkings, a site investigation may be necessary to characterise the ground conditions and assess the feasibility and costs of any necessary mitigation measures.  

The decision to conduct a site investigation during due diligence will depend on the specific circumstances of the project, the client’s risk tolerance, and the time and budget available.  

We work closely with you to advise on the appropriate level and scope of site investigation, balancing the need for robust information with the practical constraints of the transaction process. 

High-level abnormal development appraisals can support site valuation by providing early-stage estimates of the potential costs associated with preparing a brownfield or derelict site for redevelopment. These costs can include items such as demolition, site clearance, remediation of contamination, ground stabilisation, and infrastructure provision, which are not typically included in standard construction cost estimates. By modelling these abnormal costs based on the available information about the site’s history, condition, and proposed use, high-level appraisals can help clients assess the financial viability of a redevelopment project and negotiate appropriate prices or terms for the site acquisition. The appraisals can also help clients to budget and plan for the necessary work and to identify opportunities for cost savings or value engineering.  

Lucion’s HILDA tool provides a structured and consistent approach to high-level abnormal development appraisals, based on industry-standard guidance and our extensive experience in brownfield redevelopment projects.