Abbey National’s sale of its portfolio of 128 commercial properties is believed to be the largest commercial property transaction in UK history. CB Richard Ellis Limited (CBRE), acting as the main real estate adviser, required a partner to assist them and provide environmental due diligence support to the vendor.
Given the size of the portfolio and the tight timescale to prepare the due diligence, and the obvious high profile the transaction was going to take, CBRE needed to appoint a consultant with ample resources and an appropriate track record.
The sale between Abbey National PLC and ING Real Estate Investment Management (UK Funds) was valued at £1.2billion.
WSP Environmental mobilised its investment transaction focused UK Environmental Due Team of over 30 environmental auditors based across the UK to take on the task.
WSP Environmental undertook:
- Full Phase I Environmental Site Assessment of approximately 80 sites in the portfolio, including all of the industrial premises and the Irish elements of the portfolio
- Desk Study Environmental Assessments of all the remaining properties, mostly comprising lower risk office and commercial sites
- A full standalone report was prepared for each site; to be placed alongside the CBRE reports in their electronic dataroom
The three week timescale required WSP Environmental to not only work at speed to allow the reports to be available for potential acquirers on time, but also to allow CBRE to incorporate the conclusions in their individual site reports.
WSP Environmental completed its scope of works within the due diligence timescale and its reports were accepted by the eventual purchaser ING, who took reliance. A full environmental risk assessment was part of each assessment presenting WSP Environmental’s clear opinion as to the potential liabilities facing the individual properties.
Project information
Client: CB Richard Ellis Limited for Abbey National Plc
Project size: 128 sites
Project value: N/A
Status: completed