Environmental due diligence
Environmental due diligence can protect your company against environmental liabilities incurred following real estate transactions.
The fast pace of the commercial real estate and investment industry requires rapid financial decisions. To protect against potential litigation and remediation costs associated with environmental issues, financial institutions and corporations require environmental information before making a financial commitment. Due diligence is the investor’s process of investigating the details of a potential investment, such as examining operations and maintenance procedures, and verifying material facts.
Why is environmental due diligence so important?
In terms of real estate, Environmental Site Assessments (often referred to as Phase I and Phase IIs) are the most common tools for evaluating site history and possible environmental liability. The Environmental Site Assessment is an essential part of any commercial or industrial real estate transaction. In general, these assessments are conducted to provide an independent professional opinion regarding the environmental conditions and/or liabilities, if any, associated with a property.
When environmental conditions are identified during a Phase I Environmental Site Assessment, Bureau Veritas can investigate further to quantify and resolve environmental issues. We can tailor a Phase II Site Investigation to determine whether contamination exists – and if it does, define the type and extent of contamination. Additionally, we can provide cost estimates and timetables for addressing identified environmental liabilities so transactions can be properly structured.
What are the key benefits?
Effective environmental services are the basis for well-informed decisions regarding purchase, remediation, or legal action. Properly conducted assessments enable corporate managers, borrowers, investors, and lenders to fulfill due diligence requirements for all types of properties before purchase, sale, development, refinancing, or foreclosure.