Environmental Due Diligence for Property Transactions
Remediation and Land Quality Management
In early 2009 Brixton plc sought to divest the property which occupied 23 hectares with units built over a period of time. An active remediation system had operated in part of the site for 10 years and other site areas had not been investigated in detail. The divestment failed due to unacceptable environmental risk and the purchaser's view that environmental liability exceeded £2 million. In August 2009, SEGRO plc acquired Brixton plc and sought to divest the site for a second time.
BWB undertook a critical review of available information and identified areas of concern to identify why due diligence issues had arisen during the first attempt to divest the site. Intrusive works and Detailed Quantitative Risk Assessment (DQRA) were undertaken with revised reports to document a greater degree of surety on environmental risks and liabilities at the site. The transaction was completed with no reduction in land value for environmental concerns. BWB's role was to act for two different landowners for asset disposal, with the expectation to demonstrate acceptable environmental liabilities and minimise risk to reduced land value as a result of ground contamination concerns.
The project ably demonstrates the positive and negative effects of ground contamination during the property transaction. The work demonstrated BWBs detailed knowledge of the site and led to the purchaser retaining our on-going services to manage the existing remediation system at the site and to investigate and manage other areas of the site where environmental issues have the potential to impact upon asset value or development proposals.