Lecture 3 - Session 1

Question 1

Due Diligence

Answer 1

A measure of prudence, activity, or assiduity, as is properly to be
expected from, and ordinarily exercised by, a reasonable and prudent
person under the particular circumstances; not measured by any
absolute standard but depends on the relative facts of the special case.’

Question 2

Which levels is due diligence undertaken?

Answer 2

Organisational and project levels

Question 3

In a company situation due diligence involves the understanding of…

Answer 3

Debts, pending and
potential lawsuits, leases, warranties, long-term customer agreements,
employment contracts, distribution agreements, compensation
arrangements, and so forth.

Question 4

Relevant Risks in Property Investment

Answer 4

Market Risk
Tenant Risk
Physical and Building Risk
Cash flow risk
Interest Rate Risk

Question 5

Domains of due diligence process of acquiring a property for investment purposes

Answer 5

• Legal
• Financial
• Physical
• Building services
• Environmental
• Regulatory

Question 6

Property Development Due Dilligence

Answer 6

• Physical
• Strategic
• Regulatory
• Legal
• Political
• Market
• Financial

Question 7

Options for contracts

Answer 7

Simple contract
Call Option
Put and Call Option
Joint Venture