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TECHNICAL ADVISORY

Home  / Protos Real Estate / services / Technical Advisory

Protos assists banks, funds and investors with Technical Due Diligence, aimed at financing, carrying out transactions or simply verifying the compliance and state of preservation and usability of real estate assets, and identifying possible corrective actions.

When it comes to developing an initiative, the Due Diligence report focuses on an analysis of the authorisation, technical, organisational and operational, contractual, financial and market context, in order to assess reliability, particularly in terms of time and cost assumptions, and the identification of a market risk framework and mitigation solutions.
On the other hand, when it comes to an asset (or portfolio) to be acquired, the Due Diligence report focuses on the state of preservation and maintenance, usability, planning/building/cadastral legitimacy, plant compliance, completeness of documentation (ownership, certifications and technical checks, building and suitability permits, etc.), in order to identify and enhance the professional and implementation interventions required to achieve an optimal state of the asset.

The Technical Due Diligence process is often supplemented by other services, such as Insurance Due Diligence, Appraisal (for current use or HBU), Transaction Advisory, Design Assessment, Structural & Seismic Assessment, and Energy Efficiency Audit.
The Project Monitoring service is initiated during the closing phase of bank financing and is carried out for the benefit of lending institutions. It consists of monitoring compliance with the development terms and conditions set out in project contracts.

Protos is a market leader in this regard and carries out the service with a proactive approach aimed at preventing or mitigating the effects of project developments that are not in line with expectations.

In this sector, the deliverable varies significantly depending on the field, size of the project, complexity of the contractual framework and project costs.
Transaction Advisory is the name we give to a set of services dedicated to all phases of a real estate asset acquisition transaction.

For example, the real estate segment of distressed assets, above all sale-leasebacks, is very active at the moment. Real estate portfolios, repossessed or to be repossessed, are earmarked for repositioning or sale, individually or en bloc, according to the opportunities offered by the market. A ‘dynamic’ view of the technical and market analysis processes of these assets allows for the potential creation of unexpressed value (H&B Use). The service is aimed at banks, leasing companies, large real estate holdings, insolvency administrators, etc.
The process guiding owner companies in identifying and selecting sustainable optimisation or divestment scenarios requires the support of a dedicated Due Diligence team with high technical expertise and market knowledge, and expertise in related legal, tax and financial aspects.

Once the scenarios have been clarified and established, a Project Management team is required to plan activities in line with the owner's result goals and to constantly record progress as well as identify any deviations and corrective actions to achieve the optimisation and/or sales targets.
Protos supports clients in the creation of physical and virtual data rooms to ensure the availability of the technical documents required for informed property management.
In the event of sale of the property, Protos supports the notary in reading the documents and preparing the file accompanying the sale.
When providing support for sales transactions or debt restructuring, Protos carries out order portfolio profitability assessments.
The service provides for a structured analysis that includes a critical reading and cross-checking of contractual, organisational and production issues, on the one hand, and processes, budgets and costs, on the other.
Protos carries out audits – at various levels of detail – of the adequacy, completeness, regulatory compliance and effectiveness of any engineering design.
This activity can be carried out in the areas of financing, transaction (for compliance or best use development), asset management and insurance.
Protos carries out seismic suitability and vulnerability assessments for any engineering work and for buildings.
The service is divided into various stages, starting with a preliminary desk-based procedure to check the asset’s eligibility for a seismic vulnerability assessment according to current legislation. In case of positive feedback, the process continues by accessing the deeds, checking the design drawings, conducting on-site investigations (even invasive) and modelling, and concludes with the drafting of a capex plan for adaptation.
For more than thirty years, our Risk Advisory & Risk Management teams have supported our national and international clients in their complex real estate projects, to measure/estimate risks and promote/implement the best strategies, from a best practice perspective, for the correct management of risks associated with the implementation and/or management of the projects themselves.
This service has proven to be an indispensable and effective tool for risk mitigation, particularly for large, complex developments and major works, where the highest risks are attributable to the geological, hydrogeological, geotechnical and environmental context and complexity (urban areas, hydraulic risk areas, etc.). Typical deliverables of this service include the Risk Management Plan, Cost & Schedule Contingency Plan and Contractual Risk Allocation Matrix.

INSURANCE ADVISORY

Home  / Protos Real Estate / services / Insurance Advisory

Insurance Due Diligence is carried out by a specialised team with a customised perspective, mainly in the financing area to cover a project, and in the corporate area - business or asset management - in favour of companies interested in improving risk management through a detailed insurance analysis.

The sectors covered by the service are Construction & Operation, Manufacturing, Energy and Real Estate.
The objective is to analyse the project or business assets/processes to identify the associated Risk Framework, the forms of insurance mitigation and the market proposals, which vary according to the effectiveness of the coverage and the costs, on which to build the Insurance Programme in the corporate or financing environment.
Protos provides Loss Prevention & Risk Engineering services to entities financing Real Estate projects, in order to
  • Minimise exposure with respect to specific risk factors, identified in a technical analysis performed in accordance with predefined criteria and objectives;
  • Optimise insurance policy parameters and calculate premiums in a well-balanced manner;
  • Confirm whether or not targeted underwriting monitoring is required;
  • Normalise portfolio risks;
  • Assess technical risks related to contractual/performance bonds.
In particular, for each specific project/contract to be funded, the support provided by Protos includes:
  • The identification of any technical, organisational and planning shortfalls, and aspects of major criticality (risk matrix);
  • The establishment of possible corrective and risk mitigation actions;
  • The quantitative and qualitative assessment of residual risks (risk rating).
With the same aims, Protos also offers its support in the implementation of ad hoc IT tools calibrated to the client's needs and aimed at applying, in a systematic and user-friendly manner, shared risk assessment models.

LDM SERVICES & ADVISORY

Home  / Protos Real Estate / services / LDM Services & Advisory

Protos is a key player in the appraisal market, recognised for its competence and independence, and chosen by the ECB (2020) and the Bank of Italy (2014) for Asset Asset Quality Review processes

In the NPE market, HBU appraisal is a tool for value creation, to identify strategies to enhance the value of the individual asset or portfolio.
This means that on the basis of the findings of planning and authorisation analyses, as well as the state of development of the asset (greenfield, brownfield, completed, etc.), Protos will identify, among all the technically possible, legally permissible and financially sustainable uses, those that can maximise the potential of the real estate property.
Protos selects the best strategies for its clients, such as Credit Management Companies or owners of repossessed or NPL assets (real estate, plants, capital goods, etc.) for a block sale or asset by asset sale, depending on the context.
From auction promotion to managing the sale of assets through agencies or local real estate brokers, Protos supervises and reports on activities up to the final sales goal.

PROJECT CONTROL & CONSTRUCTION MANAGEMENT

Home  / Protos Real Estate / services / Project Control & Construction Management

For your Real Estate projects, the Protos Project & Construction Management teams provide expertise, experience, skills, methodologies and best practice tools for effective and efficient management of your project.
Objectives and priorities, roles and tasks, resources and constraints, scheduling and coordination: It is our goal to balance, verify, review and monitor these elements in all areas and within project times, as well as to ensure adequate work and communication plans, so that your expectations are met.
For Asset & Investment Managers in the Real Estate sector, Protos builds ad hoc Project Control and High Surveillance services to support your Project Management Office.

The Project Control (PC) service proactively supports the Project Manager throughout the project life cycle, from the start phase to commissioning/restoration to its original condition/leasing, by defining objectives, constantly verifying adherence to budget and schedule, and identifying possible improvement actions.
High Surveillance can also cover a project’s entire life cycle but compared to PC it is a service that reads a project holistically, analysing authorisation and planning issues, as well as contractual, organisational and insurance aspects, etc.

The manner in which the two services are carried out and the deliverables can differ significantly depending on the client, both in terms of number and type. They may vary according to the size and duration of the project as well as the type of stakeholder for whom the reporting is intended.
For over 15 years, Protos has designed tailored solutions to monitor and check compliance with the Service Level Agreements of real estate service providers.
The service reports on the outcome of audits, ensuring a critical reading of the results with articulated insights into real proposals for variants of tools and processes.
Our clients manage real estate assets (e.g. investment properties, office buildings, tourist accommodation facilities, etc.).
The Asset Monitoring service concerns all engineering works in operation, relating to the Energy, Infrastructure and Real Estate sector. It is carried out according to methods, techniques, criteria and technologies that depend on the specific sector and the size of the work, its use, utility (public or private) and the trio of reliability, durability and maintainability.
Protos, thanks also to several specialised partnerships, acts as a remote inspector of the state and evolution of works that require, for reasons varying from the state of the work itself to changes in the building and seismic code, accurate monitoring supported by a lettura consulenziale of the results, aimed at guaranteeing effective and sustainable actions.

APPRAISAL & MARKET ADVISORY

Home  / Protos Real Estate / services / Appraisal & Market Advisory

CHOSEN BY THE ECB (2019-2020) AND THE BANK OF ITALY (2014) FOR ASSET QUALITY REVIEW PROCESSES

A TRANSVERSAL service offered by all group companies to the infrastructure, insurance, real estate, NPE and energy sectors.

Protos, a key player in the appraisal sector, helps a wide range of clients, including banks, leasing institutes, insurance companies, insolvency administrators and liquidators, asset owners and managers, potential buyers, credit management companies, etc., to identify the most probable market value of ‘as is’ or ‘as (to be) completed’ asset projects, using methodologies, estimation and reporting models based on international and compliance-oriented best practices (RICS, IVSC, IAF/AFRS, IVASS, USPAP, TEGOVA, Bank of Italy, ABI standards).

Depending on the sector/industry – real estate, energy, infrastructure, manufacturing, marine & nautical, agricultural – of the type of asset and the context in which we are called on to operate (financing, transaction, insurance, distressed assets, asset management), market value is sometimes supplemented by estimates in terms of security/MLV, quick sale, forced sale, insurance, judicial, highest & best use or by normal value, value of usufruct/bare ownership, value of surface rights, value of plant and equipment, and statistical evaluations.

Our reports are structured using a common template and are anchored to a web-based platform, but can be customised according to client specifications.
Our service includes:
  • A Central Appraisal Unit for establishing methodological guidelines and carrying out spot checks on issued products;
  • An Appraisal Management Team composed of Senior Appraisers responsible for verifying compliance with the methodological guidelines established in the work of internal and external evaluators, and also for managing client relationships according to the service levels established by mandate or by framework agreement;
  • Appraisers, Junior Appraisers and a nationwide network of approximately 150 qualified external technicians.
The strengths of our service are:
  • Independence – Protos is extraneous to commercial activities;
  • Market knowledge – ability to select effective real estate observers;
  • Transversal expertise – ability to manage risk profiles from multiple perspectives.
Protos can be considered a privileged vantage point for certain markets, for which, over the years, it has served in various roles as a reference for players in the financing and transaction fields.

For example, in the Real Estate and Leasing Market, Protos has evaluated and followed the execution phases, in the last 15 years alone, for:
  • Over 1500 real estate projects;
  • Over 200,000 leasing assets throughout Italy.
  • Monitoring regulatory developments and market trends (HBU and/or technological);
  • Monitoring implementation applications of innovative or consolidated project solutions;
  • Enriching the internal Competence Centres (valuable reference points) with technical and experiential data.

BUSINESS STRATEGY ADVISOR

Home  / Protos Real Estate / services / Business Strategy Advisor

Protos carries out consultancy and audit activities on production chains and business processes in the Real Estate sector, with methods tailored according to the client's objectives.
The service consists of a critical reading of the ‘as is’ state to determine, on the basis of gaps identified, one or more ‘to be’ scenarios built on best practices and aimed at developing an evolutionary picture of the company and its processes.
All Protos Group companies provide their clients with transversal approaches and skills, experience, creativity, knowledge and market analysis to identify those scenarios that can create value in their business, optimising their developmental profile.

The tools can be many and varied, implemented on a case by case and sector by sector basis. They include market studies, feasibility studies, investment analyses, technical solutions, organisational solutions, and much more.
Protos Real Estate operates as an Investment Advisor, analysing the profitability of existing portfolios or checking the profitability of acquisition targets, also within the context of NPL portfolios, in collaboration with Protos NPE.

Protos NPE, moreover, has contributed and continues to contribute to the design, also digital, of management strategies and the prioritisation of processes preparatory to the sale and/or value enhancement of non-performing loans.

LITIGATION & DR ADVISORY

Home  / Protos Real Estate / services / Litigation & DR Advisory

The traits of independence and impartiality, specialised technical know-how and experience gained in more than thirty years at the service of national and international clients make Protos the ideal partner for the role of independent expert in a wide range of fields, especially in the Real Estate sector.
By choosing Protos you can count on a specialised, competent and authoritative group, able to promptly develop technically complex evaluations and provide reliable and proven opinions in support of pre-litigation phases.
The typical deliverables of this service are Adequacy Testing, Opinion Report and Expert Report.
In support of the judicial and extrajudicial settlement of proceedings, and more in general, the optimal management of disputes, pre-litigation, arbitration and litigation which in a broader sense require the technical and analytical support of multidisciplinary teams, Protos offers support as a Party-Appointed Expert (PAE) in numerous engineering areas and contexts in the Real Estate sector.
The work of PAE includes but is not limited to disputes relating to compliance with technical and contractual standards, the quality of works performed, the adequacy of preliminary investigations and design choices, the consistency of execution times and costs, and the congruity between work carried out and contractual requirements.
Protos carries out analyses and assessments of Construction Claims on behalf of General Contractors and Employers.

Protos Check is the only company in Italy accredited by an independent inspection body for the assessment of construction claims in public contracts and has performed this service since 2012.

Protos’ work is aimed at giving an independent and equidistant opinion of the approaches and positions of the parties, based on an analysis of the various elements of claims raised, their reliability and admissibility, as well as their consistency with the contractual obligations and terms in force.
Where verification concerns the specific issue of the economic quantification of claims, the reasonably obtainable value of which constitutes an asset for the party that has submitted them, Protos an assessment of their reasonableness, evaluating the economic impact in terms of ‘probability curves’ and associating the corresponding ranges of amounts with the various probabilities of success (or a single one, if required). Protos operates in the various dispute resolution scenarios such as amicable agreement, arbitration and settlement.

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