Technical due diligence for real estate transactions in Germany
We review existing buildings and transaction assets before acquisition or financing. You receive a sound overview of building condition, CapEx, hazardous materials, ESG risks and technical deal breakers, prepared by civil engineers and reported in English.
A technical due diligence (TDD) is the systematic review of the structural and technical condition of a property before acquisition, financing or sale: structure, roof, facade, building services, fire safety, suspected hazardous materials, energy and permit situation, brought together in a risk report with a CapEx estimate. Schneider Theißing prepares TDDs for international investors, funds, family offices, lenders and developers in Frankfurt Rhine-Main, on the Bergstraße and in Rhine-Neckar, and for larger transactions across Germany.
Price agreed, technical condition unknown
In real estate transactions the decisive risks often lie in the technical condition rather than in the sales memorandum: refurbishment backlogs, unclear hazardous materials or capital expenditure that changes the business case. Buying without a systematic review means taking on risks that often only become concrete after closing.
Documents in transactions are often incomplete or prepared with the sale in mind, and facility management reports show the actual condition only to a limited extent. What is often missing is a systematic technical inspection with a traceable assessment of defects, CapEx and risk before the purchase agreement.
Our TDD delivers a structured report with traffic-light rating, defect register, CapEx estimate and risk classification, prepared so that the results can be used directly in price negotiation, financing structure and investment memo. Legal, tax and commercial due diligence are not part of our work; we provide the technical basis for those decisions.
Describe the asset, the data room and the time window
TDD services: red flag report, full TDD, hazardous materials and CapEx
Compact first assessment for go or no-go decisions in deal screening. Focus on deal breakers: suspected hazardous materials, structure, fire safety and indications of contamination from documents and the official register of contaminated sites. Soil investigations are commissioned separately.
Detailed report on the condition of the agreed trades, defect register with photo documentation, CapEx estimate by time horizon and overall risk classification.
Suspicion assessment and recommendation for asbestos, PCB, man-made mineral fibres and wood preservatives. Where needed, coordination of laboratory analyses and a dismantling concept.
Energy condition: energy performance certificate (Energieausweis), insulation level, foreseeable refurbishment needs and, for institutional requirements with sufficient data, CRREM and stranding questions.
CapEx estimate by urgency and time horizon, ready for price negotiation, financing model and maintenance planning, as far as data and scope of review allow.
Standardised review of several assets in one transaction, with a uniform rating matrix, aggregated CapEx and comparable traffic-light ratings across the portfolio.
Who we work for
Developers and investors
Acquisition review before letter of intent or signing. Technical assessment for the business case, CapEx as a basis for price adjustments and financing structure.
Real estate funds and family offices
Structured TDD reports with traffic-light rating, CapEx table, optional ESG assessment and red flag summary for investment committee and fund reporting.
Lenders
Plausibility check of CapEx, maintenance reserves and condition as part of the financing review. Technical basis for financing discussions and further valuation steps.
Asset managers and long-term holders
Condition survey before portfolio clean-ups, refinancing or sale processes. Technical basis for CapEx provisions and maintenance strategies.
Review areas, traffic-light rating and CapEx table
We work with a standardised review catalogue based on the requirements of institutional investors and lenders. The scope of the report is defined in advance; CapEx estimates are structured by time horizon and trade.
Review areas
- Roof and facade: condition, remaining useful life, refurbishment needs
- Structure and foundations: visible signs of stability problems, settlement, crack patterns
- Building services: heating, ventilation, plumbing, electrical, lifts
- Fire safety: fire-safety related findings within the agreed scope
- Hazardous materials: suspicion of asbestos, PCB, man-made mineral fibres or wood preservatives
- Energy: energy performance certificate, insulation level, building-specific modernisation topics
- Accessibility: obvious barriers and adaptation needs within the agreed scope
- External areas: parking, access roads, drainage, landscaping
Report format
- Executive summary with traffic-light rating (red, amber, green)
- Detailed defect register with photo documentation
- CapEx table with cost estimate by trade and time horizon
- Red flag report for a fast purchase decision
- Risk classification by probability and impact
- Recommended actions ranked by priority
Where institutional requirements and data allow, the TDD can be extended with CRREM, stranding or taxonomy-related assessments. This information can feed into the CapEx model but does not replace a regulatory or legal review.
From appointment to the TDD report
Briefing and scope
We clarify asset type, transaction stage, time pressure and depth of review. You then receive a written proposal and a schedule for inspection and report delivery.
Document review
Review of the data room: floor plans, building description, energy performance certificate, maintenance records, hazardous material reports, rent roll. Information gaps are identified.
Site inspection
Systematic inspection of all relevant areas: basement, roof, facade, plant rooms, staircases, sample apartments or rental areas. Photo documentation of all findings.
Assessment and CapEx
Defects and risks are classified, priced and transferred into a CapEx table by trade and time horizon: immediate, short term, medium term.
Report and discussion
You receive the TDD report with executive summary, traffic-light rating, CapEx table and action points. On request we explain the results to the investment committee, the lender or the seller.
Why a civil engineer’s view makes the difference
A TDD is only as good as its scope, the data and the construction experience behind it. Civil engineers with site practice translate findings into refurbishment logic, CapEx and their effect on the decision.
- PracticeConstruction site experience: we recognise the defect and estimate what the remedy is likely to cost and how long it takes.
- CostCapEx estimate based on traceable calculation logic, specific to the asset and the agreed scope.
- TimeTime-critical reviews are prioritised by asset, documents and necessary depth. What matters is that the scope of the report fits the decision.
- FormatReport in the format institutional investors use: traffic-light rating, CapEx table, executive summary.
Frequently asked questions
Technical clarity before you sign
Describe the asset, the transaction stage and the depth of review you need. We give a first view on scope, time frame and fees.