TÜV SÜD analyses - the way to optimise financing and climate strategies

TÜV SÜD analyses - the way to optimise financing and climate strategies

At Expo Real, the commercial property trade show held in Munich from 4 to 6 October 2011, TÜV SÜD will present its comprehensive range of due diligence services for property investors, developers and owners. The international service provider will also debut its carbon footprint solutions for buildings (Stand C1.212, A1.430).

The topic of refinancing in the property sector is at the centre of a tug-of-war between the new equity regulations set forth in Basel III and Solvency II, high liquidity requirements and sustainability. "All three of these major issues step up the pressure on evaluations of life-cycle duration and costs", notes Dr. Ulrich Klotz, Managing Director of TÜV SÜD Industrie Service GmbH and head of the Real Estate division of TÜV SÜD AG.

The integrated due-diligence approach adopted by TÜV SÜD Industrie Service establishes a robust basis for investors, developers and owners upon which they can estimate the future viability of their existing office and administration premises while also strengthening lenders' confidence in the properties to be financed. "A key structural element of Basel III comprises the increasing liquidity regulations (such as liquidity coverage ratio) with which banks must comply. These new rules state that sufficient liquid assets must be available to ride out any periods of market crisis securely", explains Rainer de Vries of TÜV SÜD ImmoWert GmbH. "The times when buildings with long life cycles lacked adequate follow-up investment through changing usage requirements are now in the past."

The end-to-end due diligence approach developed by TÜV SÜD comprises Environmental Due Diligence, Technical Due Diligence and Real Estate Due Diligence services. When energy-related and sustainable modernisation measures are implemented during a building's life cycle, ancillary costs may be reduced - but in order to refinance the investment, focus on the property's long-term marketability is generally required.

The narrow margin between essential and cost-effective sustainability measures clearly shows the importance of forward-looking planning and quality assurance during implementation. Any unforeseen additional costs arising from faulty refurbishment can significantly extend the payback period, increasing valuation risks. "To take such factors into consideration, TÜV SÜD employs an integrated end-to-end valuation system developed on the basis of numerous real-estate due diligence projects and examining approximately 150 informative and reliable criteria spanning five main valuation areas", explains Dr. Stefan Heuß, Director of the Energy Efficiency Center of Competence at TÜV SÜD Industrie Service. Criteria include assessment of the building's heating energy and electrical energy situation, its building structure and technical services, and any potential conversion options. The sustainability analysis also provides a robust foundation for later certification in line with international standards including BREAM and LEED.

Carbon footprints of buildings

At the 2011 Expo Real, TÜV SÜD will also debut its carbon footprint solutions for buildings. "This sector examines the building life cycle as a whole, from planning and construction, use and maintenance down to recycling", reports Thomas Claßen, Carbon Management Service Project Manager at TÜV SÜD. "Important aspects of a robust carbon footprint assessment include sensible classification of the building materials used, valid emission factors and transparent reporting.“ TÜV SÜD provides support for property owners and operators not only where sustainable construction methods are concerned, but also in their efforts to place emissions on a carbon-neutral footing and obtain corresponding certification.

Talks by TÜV SÜD experts at Expo Real:

  •  Gefma panel discussion: "Sustainability in existing buildings - dream or reality? Solutions 
     with a practical focus"
     Dr. Ulrich Klotz, Managing Director of TÜV SÜD Industrie Service GmbH and Director of the Real Estate 
     division of TÜV SÜD AG, will be on the panel.
     04.10.2011, 12:00 to 12:45 pm, Hall A2, Stand 040
  • Due Diligence Solutions – TÜV SÜD SCoRE (Dr. Stefan Heuß) and Carbon Footprint for Buildings (Thomas Claßen)
    05.10.2011, 10:00 to 11:30 am, conference room B12

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