Property
ESI’s expertise has helped a wide range of property developers in managing the planning process, including developments for housing, commercial property, industrial property, mixed development and amenities. ESI works with property development teams to manage the environmental risks on brownfield projects. We help our clients steer an easy course through the minefield of environmental legislation and negotiation, and save them time and money in their divestment, acquisition, and development of projects.
Environmental issues can be extremely important to the risk profile of corporate transactions. Unrecognised liabilities relating to land or water contamination, or impending permit requirements, can cost purchasers and lenders dearly and can, in a worst-case scenario, result in criminal penalties for directors. Obtaining sound technical advice on the nature and likelihood of environmental liabilities is an essential part of corporate due diligence and is ignored at a purchaser’s or funder’s peril. Conversely, there are occasions when environmental liabilities have been over-stated and this may create valuable investment opportunities. Contaminated land is a key area in this regard and recent changes in the legislation have changed the viability of many redevelopment projects.
ESI is well-placed to advise on specific sites or property portfolios, using our extensive knowledge and experience of real-world sites. Whether in support of buyers, sellers, investors or lenders, ESI can sort the hypothetical liabilities from the real, allowing decision-makers to make best commercial use of the knowledge available to them.
The following PDFs contain information on some of the services ESI provide to property developers:
Financial Sector
ESI provides a range of land quality services to companies operating within the finance sector and in particular finance companies providing equity for commercial developments and those providing mortgages within the private sector. When lending for the purchase of property or if property is used as guarantee the lender needs to be aware that default could leave them as lender in possession and responsible for any liability relating to land quality issues.
As a worst case scenario a lender could be left with the liability of land contamination remediation which potentially could have greater cost than the value of the remediated land.
Insurance
Risk of flooding is one key area where ESI can provide bespoke support to the insurance sector. In general property risk to flood is assessed through the use of generic reports covering fluvial and groundwater flooding. Many of these reports are based on large geographic areas and do not take into account individual factors that might either add to the risk or indeed highlight individual properties that have a low risk to flood whilst being in a high risk area.
ESI’s environmental consultants are ideally placed to provide innovative solutions to issues faced by the financial and insurance sectors.
Industrial Property: Manufacturing and Petrochemicals
Manufacturing and petrochemical companies often face challenges regarding land and water quality, whether due to operational or legacy issues. ESI recognise our clients’ commitment to sustainable and socially responsible practices, and we can provide leadership and support on a range of environmental issues. Our clients include Shell, BP, Exxon Mobil, ICI, Total and Akzo Nobel. We work with our clients to instil a proactive behavioural approach to health and safety amongst our project teams, and have an excellent track record in this respect.