The Effect of Real Estate Share Deals on Commercial Property Price Indicators

Ishaak, Farley; Schie, Ron van; Haan, J. de

doi:10.15396/eres2021_148

Cited by 1 publication

(2 citation statements)

References 17 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…, 2004; Haurin et al. , 2010; Devaney and Scofield, 2015; Ishaak et al., 2021). This implies that an investigation of the potential buyers and sellers by the other sides would be inevitable, and this forms the cornerstone of interactive decision-making in large real estate transactions.…”

Section: Due Diligence In Real Estate Transactionsmentioning

confidence: 99%

“…2. Due diligence in real estate transactions 2.1 Features of BDD In the real estate market longer transaction periods and costs are typically associated with more complex real estate assets like shopping centres, portfolio transactions, assets without freehold ownership, or atypical assets and share deals (Bond et al, 2004;Haurin et al, 2010;Devaney and Scofield, 2015;Ishaak et al, 2021). This implies that an investigation of the potential buyers and sellers by the other sides would be inevitable, and this forms the cornerstone of interactive decision-making in large real estate transactions.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Strategic vendor due diligence in real estate transactions

Wiejak-Roy

2022

JERER

View full text Add to dashboard Cite

PurposeIn light of the ever-growing complexity of real estate transactions, the need for vendors and buyers to better understand the role of vendor due diligence (VDD) is imperative. The purpose of this paper is twofold: firstly, it provides a detailed literature review regarding the role of VDD from both the vendor's and buyers' perspectives. Secondly, it analyses the value of VDD over and above the buyer's due diligence (BDD) in real estate transactions by proposing a theoretical model involving two-stage auctions.Design/methodology/approachReal-world examples from the industry are used as a motivation behind listing a set of practical questions. A theoretical construct is built to approximate the real estate environment under study. The construct is then studied from a game-theoretic perspective to obtain theoretical answers to the questions. These answers are then used to shape recommendations for the relevant industry and beyond.FindingsThe model suggested accommodates the feature that even though the VDD is broadly increasing informational efficiency in the market, its value is limited and sometimes harmful when the vendors have a sound prior understanding of their assets and the buyers' pre-transaction information about the asset is already high.Originality/valueThough the real estate market is considered here, the theoretical model we propose is applicable to any other complex asset transaction decision that supports endogenous information disclosure considerations using VDD.

show abstract

Section: Due Diligence In Real Estate Transactionsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%