MUMBAI: Due Diligence, part of preinvestment advisory provided by Quantum, is a process of evaluating details to facilitate a business decision. It can be a legal obligation, but the term more commonly applies to voluntary investigations. One of the key objectives of due diligence is to minimize, to the maximum extent practicable, the possibility of there being unknown liabilities or risks. The exercise is multi-dimensional and involves investigation into the business, tax, financial, accounting, technical, commercial and legal aspects.

Recently in a real estate summit, experts stated that prior to the industry meltdown in 2008-09, there was a big mismatch in the funds' returns expectations and added that earlier funds were expecting higher IRR because they thought that real estate returns are normally sky high in the Indian market and that they will make more money. But in most cases, project approvals didn't come and projects didn't take off even after two years of investments, making them as good as junk transactions. This experience has increased the necessity of apt due diligence. Similar concerns have been there on cost overruns in the projects seriously impacting return expectations.

The approach to due diligence depends on the type of transaction and what is intended to be achieved. In real estate industry, due diligence is typically done in areas of legal, commercial, technical, financial and taxation aspects. Conducting effective due diligence, especially of an international standard, requires a well-coordinated team of experts with the ability to complete a highly technical task both efficiently and accurately. This is where Quantum perfectly fits in.

Quantum provides full spectrum of end to end real estate consulting. Under its business vertical of Preinvestment advisory, Quantum has done Technical Due Diligence for large Real Estate Private Equity (PE) funds. In such services, Quantum with vast experience of its dynamic team does detailed analysis of every aspect of the project capturing the minutest details. For a typical assignment the scope covers buildability analysis which includes checking the available FSI/FAR, zoning regulation, and development & policy restriction & many other aspects to determine buildability. Also, project budget is reviewed considering scale of the project, project location and other important factors affecting both budget and project plan. Critical review and validation of status of approvals, duration of the project, project schedule, construction phasing, etc. is carried out.

Going ahead Quantum is growing its focus and efforts towards Techno-Commercial due diligence for a project. Funds often have to appoint different agencies for different areas of diligence. And so the impact of one area on another is not known clearly. For example, change in estimated total saleable area will have impact both on the commercial as well as financial aspects of the project. So, due diligence of a project covering areas of commercial, financial and technical by a sole agency is the need of hour. Quantum is fully capable to fill this need and is in the process of soon being appointed for such due diligence for a large investments.

About Quantum ProjectInfra Pvt. Ltd.

Quantum ProjectInfra Pvt. Ltd. offers full spectrum of integrated development services, covering all facets of real estate development - including acquisition, conceptualisation, planning, developing, project management and monetization. Quantum provides complete end-to-end development services with an entrepreneurial approach, taking ownership of delivery. With it's headquarter based in Mumbai, Quantum is also present in NCR, Pune, Bengaluru and Hyderabad. Quantum's mission is to elevate the standards of the industry, creating high value and sustainable projects.

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Primary Media Contact: Amit Tindwani, amit.tindwani@quantumrealty.co.in, 91-8108529007

Secondary Media Contact: Anil Pandit, anil.pandit@quantumrealty.co.in, 91-9930144202
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