PROJECT - Building Surveying

Supporting real estate transactions

Artelia’s Building Surveying team provided technical support and due diligence services to Landsec for the successful disposal of its hotel portfolio let to AccorInvest. This significant transaction involved the sale of 21 properties across key cities including, London, Birmingham, Manchester and Edinburgh, to Ares Real Estate funds for £400m.

Our service included:

• Detailed surveys and technical due diligence on each site for input to the seller’s pack, which included evaluations of building fabric, mechanical and electrical systems (M&E), and lifts.
• Phase 1 environmental due diligence, assessing potential site impacts such as flooding and contamination risks, along with a review of planning history.
• RAAC Inspections of each asset to assess risk.
• 10-year strategic capital expenditure plans for each asset, outlining projected spending on fabric and M&E, to aid potential vendors in future financial planning.
• Assisted with addressing site-related queries and information requests from prospective buyers, facilitating a smoother transaction process.

Artelia has been asset managing the hotel portfolio on behalf of Landsec since 2017, which enabled us to add value to the due diligence process with comprehensive knowledge of each asset and its stakeholders. Rather than a simple inspection report, our surveying team provided in-depth information about the property management regime, repairs, maintenance and development works carried out at each site. When buyer queries arose we were able to drill down into the detail, such as parties involved and available warranties and guarantees, to give confidence to the purchase decision.

AccorInvest will continue to lease the hotels with operations transferred to Ares’ hotel-operating partner EQ Group which manages approximately 5,000 rooms, including properties such as the Hilton London Metropole and Hilton Birmingham Metropole.

Our surveying team’s expertise not only facilitated a key strategic move for Landsec but also ensured that every stakeholder was well-informed and reduce unnecessary delay and negotiation with the purchaser.

Services