TDD and EDD1 examinations of house portfolios purchased by American bank Morgan Stanley

A real estate fund managed by American bank Morgan Stanley Real Estate Investing purchased the house portfolio of 40 real estates from Kojamo Oyj in March of 2018. Raksystems executed a Technical Due Diligence and a Phase I Environmental Due Diligence for all of the rental apartments.

The buyer wanted to determine the technical value of the house portfolio before transaction, in order to identify possible repair needs now and in the future to have an idea of upcoming repair costs. Determining the repair costs beforehand is important, because it makes it possible for both parties of the transaction to evaluate the relevancy of purchase price. Also, the possible presence of hazardous substances was examined in the ground and buildings.

The real estates are located in Tampere, Turku, Vantaa, Kuopio, Jyväskylä, Lahti, Hämeenlinna, Kotka, Kouvola, Lappeenranta, Mikkeli, Pori, Porvoo, Riihimäki and Rovaniemi.

Finland attracts

The 97 M€ transaction in question is one of the largest real estate transactions in Finland in the past 6 months and this buyer’s first real estate transaction in Finland. Raksystems has executed TDD and EDD examinations to as many as 100 other real estate’s simultaneously to this transaction.

Seller of house portfolio: Kojamo Oyj
Buyer of house portfolio: real estate fund managed by American bank Morgan Stanley Real Estate Investing
Number of municipalities: 15
Number of real estates: 40
Number of apartments: 1594
House portfolio’s selling price: 97 M€