Due Diligence and Asset Management

WE OFFER SERVICES FOR

Due Diligence Asset Management

• Enterprise asset management solutions

• Asset blueprint development

• ISO55000(1) certification process

• Building and plant audits

• Data solutions and analytics

• Digital monitoring

• Reliability modelling

• Determination of optimal preventive interventions

• Life cycle cost analysis

We're Owner Engineers

Senior and licensed engineers in various engineering disciplines are capable of conducting accurate measurement, testing, and evaluation of engineering systems.

We're Data Scientists

We assist Clients in making optimal decisions on operation and management of assets by applying Data Analytics, Statistic Inference Analysis, and Reliability Modelling.

We're Professional

We are attentive and punctual in providing adequate level of services to Clients, working with Clients as One Team using Agile management practice and collaboration.

Diligence and Asset Management for building and engineering systems

DUE DILIGENCE

We provide Technical Due Diligence (TDD) services that involve a process of systematic review, analysis, and discovery of the conditions of assets from various viewpoints such as architectural, constructional, structural, MEP, fire safety and external façade checking.

The TDD services also consists of a review and analysis of cost estimation for short, medium, or long-term preventive intervention program. We utilize experience and knowledge of asset management in the context of TDD to provide optimal set of advices regarding future investment on the assets. All identified defects are being assessed as per their seriousness and are being added with a qualified investment costs estimation for their removal. Our company owns a rich set of cost database on investment projects both locally and globally, thus we will be able to provide Clients accurate cost estimation for TDD services through a rigorous benchmarking process.

Project Highlights

TDD can also cover a building review from legal point of view (building conformity with valid construction standards). This is being provided by creating a summary and analyses of the most important issued permits including identification of possible neglects or related risks. Our services may also include assessment of environmental risks, environmental due diligence.

This is being provided by commenting the project in terms of possible site contamination risks and environmental impacts assessed on the basis of available documentation.

Aside from TDD works for building systems, we helped a global capital investment firm to conduct detailed TDD for a world- class Shipyard in the Philippines for acquisition and establishment of commercial and legal arrangement with new tenants.

We provided TDD and EDD for water and wastewater facilities in Metro Manila, Mindanao and Visayas, Thailand, and Vietnam.

Technical audit can further control actual measurements of lease or other areas and revise related contracts and guarantees. Technical audit/ feasibility study can be also conducted during the Project preparation phase based on the evaluation of Project documentation and other available documents.

Benefits

The benefits of having us to provide Due Diligence services to you includes, but not limited, to the followings:

• Gaining a good perception on the physical condition states of the assets and the overall deficiencies compared to the intended design.

• Establishing a set of Level of Services that assets are required to provide adequately for their intended use.

• Estimating a high-level Cost Estimate for a Preventive Intervention Program.

• Providing a level of security and protection for investors regarding acquisition or investment on assets.

• Providing a certain level of confident on asset pricing for allocation of risk or price negotiations.

We have combined the science of asset management and real estate business into the practices of Technical Due Diligence works that supports Clients to have longterm and visionary views on capital investment's prospective and sustainable benefits. We create value added benefits to Clients by utilizing in-house rich cost database and in- depth analysis using appropriate benchmarks.

ASSET MANAGEMENT

Asset Management is the optimal allocation of the scarce budget between the new arrangement of asset and rehabilitation/maintenance of the existing assets to maximize the value of the stock of assets and to realize the maximum outcomes for the stakeholders.

Kiyoshi Kobayashi, Professor, Kyoto University, Japan

Our services encompasses

• Asset inspection and monitoring for capturing physical condition and operational condition of assets.

• Development of asset hierarchy and classification.

• Preparation of blue -print and strategic framework for organizations aiming to establish a long-term integrated asset management.

• Reliability study and modelling based on both qualitative and quantitative approaches.

• Weibull and Markov modelling and analysis.

• Fault-Tree, Event-Tree, Bowtie, and Reliability Block Diagram (RBD) analysis.

• Deterioration prediction and modelling based on historical, inspection and monitoring data.

• Life cycle cost estimation and calculation of Return on Investment.

• Deterioration of optimal preventive intervention strategies and programs.

Diligence and Asset Management for building and engineering systems

Modern asset management for engineering systems shares similar concepts and modelling approaches of financial engineering. Thus, it is important for asset management engineers and specialists to comprehend the underlying models led to deterioration based on statistical and probabilistic approaches and models of life cycle costing for determination of optimal preventive intervention

We are capable of providing asset management services for various types of engineering and infrastructure systems such as water and wastewater utilities, mechanical and electrical assets of industrial plants, bridge and pavement systems, and building assets.

We are fully committed to apply the state - of-the art asset management standards (e.g. FMEA, ISO55000/ 01/02) to realize the best and optimal solutions for keeping and maintaining your assets in good conditions and constantly provide adequate level of services.

BUILDING AND PLANT AUDITS

When and where to perform major audits are dependent on the tradeoff between benefits and impacts. As assets deteriorate in uncertainty manners, optimal determination of interval time window to conduct audits should be not only based on experience and regulations but also on the outcomes of underlying deterioration and reliability analysis.

Services

• Mechanical & Electrical Audits.

• Energy Audit.

• Road & Bridge Condition Inspection.

• Reinforced Concrete (RC)

• Compressive Test and Crack

• Prediction.

• Work Environment Measurement

• (WEM) audit.

• Fire Protection and Safety.

Benefits

• Understand the condition and operational states of their assets.

• Establish a rich set of time series and panel data for future reference.

• Capture deterioration speed through modelling and analysis on time series data.

• Determine level of services and reliability at the time of inspection and future points.

• Prepare positive and preventive intervention plan, including conceptual and detailed design.

• Prepare immediate action plan for compliance purpose.

• Determine whether the systems and the assets have been working in optimal operation scheme.

• Perform Benchmarking for overall improvement of management system based on Key Performance Indicators.

• Ensure the compliance with standards and codes. Guarantee the maximum performance of assets for generating more benefits (e.g. revenue) for stakeholders.

MECHANICAL AND ELECTRICAL AUDITS

Services include Visual Inspection, Desktop study on historical records, physical testing, and measurement for Mechanical and Electrical assets (e.g. HVAC, transformers, GENSETs, Pumps, Chillers, Fire Protection and FDAS devices)

Clean rooms

Bio - chem facilities

Food and Medical Facilities

Chemical and Process Plants and Chillers systems

Water distribution networks and utilities

Retail and Shopping Malls

Oil and Gas Stations

Commercial, BPOs, Real Estate properties

Qualitative and Operational Study

Failure Mode and Effect Analysis (FMEA) will be implemented for the purpose of qualitative and operational analysis. It involves reviewing as many components, assemblies, and subsystems as possible to identify failure modes, and their causes and effects. FMEA is an inductive reasoning (forward logic) single point of failure analysis and is a core task in reliability engineering, safety engineering, and quality engineering and management. Reliability centered maintenance (RCM) is a process to ensure that systems continue to do what their users require in their present operating context. It is generally used to archive improvements in fields such as the establishment of safe minimum levels of maintenance. Successful implementation of RCM will lead to increase in cost effectiveness, reliability, machine uptime, and a greater understanding of the level of risk that the organization is managing.

Quantitative Analysis

Operational data and information obtained from visual inspections and testing can then be used in Quantitative Analysis, which will provide asset managers useful numerical values on risks and impacts. Following techniques and models might be applied.

• Weibull Analysis

• Fault Tree and Event Tree Analysis

• Markov and semi-Markov model

• Bowtie Analysis

• Bayesian Analysis

• Markov Chain Monte Carlo Simulation

• Regression Analysis

Pump System

Auditing for a pump or a pump system involves three methodologies: (1) Investigation of operations scheme; (2) Data analysis on operational data; (3) Inspection and testing of pumps to derive efficiency and reliability.

In many cases, through auditing, shortfall in original design of pumps can be revealed. In addition, by investigating operational data such as power consumption and production or cavitation, it is possible to detect and make conclusion on whether the operations scheme is optimal.

Chillers, Air Handlers HVAC Systems, and GENSETS

Aside from performing visual inspection and study the operational data, testing on existing chillers and HVAC systems might also involve the implementation of the Computational Fluid Dynamic (CFD) modelling for Heat and Flow Analysis.

Electrical Assets

We use latest electrical software (e.g. Etab and Fluke) and equipment (e.g. Power Quality Analyzer) to perform electrical audits for buildings and engineering systems.

• Visual Inspection

• Short- circuit calculation and evaluation

• Voltage drop calculations

• Load flow and Harmonic study

• Power Quality Analysis

• Ground System study

• Electrical design and analysis

• Electrical integrity and FDAS

Bridge and Road Condition Inspection & Monitoring

Road and Bridge condition and distresses (e.g. cracking, roughness, unevenness, potholes) can be conveniently captured, thanks to the utilization of high definition camera and drone technology. Our team has developed and advanced image recognition algorithm and a structured dataset to record a great deal of geospatial data, which will be then used for deterioration prediction and determination of optimal preventive intervention strategies.

Testing & Life cycle costing for Reinforced Concrete

RC structures deteriorate overtime as their conditions and level of services are affected by various factors (e.g. loadings, temperature, working environments). Particularly, some typical RC structures in maritime settings (e.g. ports, jetties) need special attention and require regular auditing with tests to estimate deterioration process and to determine appropriate preventive intervention strategies. Our team utilizes a combination of Non-Destructive Tests (e.g. Rebound Hammer, Ultrasonic Pulse Velocity, Core Extraction and Compressive Strength Test, Chloride Penetration) for specific sites to collect data and then use frontier modelling technique (e.g. Fick's Second Law of Diffusion or stochastic models) to predict the deterioration. A complete Life Cycle Cost will then be formulated based on proposed intervention strategies

DATA ANALYTICS & AI MODELLING

Time series and panel data of operations and condition states of engineering systems, if being recorded properly, can be extremely useful to be used in data analytics and AI modelling to predict trends and provide further insightful pictures on Efficiency

Reliability and stability

Correlation of variables

Bottlenecks

Risk factors and impacts

By understanding those, optimal decisions can be made. The tasks on data solutions and AI can also be linked to Asset Management using the power of statistical correlation and prediction capacity, which could potentially save significant cost.

Open source approach

We extensively use open source analytical software such as Python and R. This means we can transfer the codes to Clients for knowledge sharing and learning. This is an important approach that supports Clients to gradually master the methodologies for future implementation and expansion.

Interactive Reporting

We develop various types of interactive reports and dashboard that can be shared online conveniently. Latest platforms such as R Shiny, Power BI, and Tableau can be deployed based on the specific Clients requirements and expectations.

RECENT PROJECTS

TDD projects Remarks Clients

Year of completion

72 MW Data Center in Metro Manila Both brown field and green field development for a data center SpaceDC 2021

5 Highrise buildings in Global Clark City

TDD and CDD for acquisition of the property which is at the level of 80% completion.

Grade A office building Altus Capital 2021

Azure Gaming and Warehouse ~65,000 m2 of 3 level large scale warehouse and game centers Altus Capital 2020

2 Highrise Buildings in BGC (Citibank Plaza and W5th Building)

Full TDD for 2 20 plus storey Grade A Buildings Hankyu Group, Japan 2021

W City Center Building in BGC 31 story Highrise Grade A Buildings Hankyu Group, Japan 2020

TDD, CDD, and EDD for acquisition purpose

Hanjin Shipyard

Arcadis is currently the Owner’s Engineer for Design and Construction Management Phase after the Client acquired the shipyard and decided to renovate/retrofit/upgrade the entire shipyard

40 plus warehouses in Vietnam

Cerberus Capital 2020

Design review and TDD, EDD Boustead Singapore Ltd 2020

Seismic Assessment for HSBC buildings in Hanoi, Vietnam HSBC 2021

Lake Mainit 25MW Hydropower Plant

TDD and CDD for the Client to decide on investment

RCBC 2021

Cebu Cordova Link Expressway

Independent Lender’s Technical Advisor with a scope to undertake an Environmental, Social and Technical Due Diligence (ESTDD) study of the proposed project.

Cebu Cordova Link Expressway Corporation 2022

RECENT PROJECTS

TDD projects Remarks

Clients

Cavite-Laguna Expressway

Independent Lender’s Technical Advisor with a scope to undertake an Environmental, Social and Technical Due Diligence (ESTDD) study of the project road as well as for the construction of the Cavite –Laguna Expressway (CALAEX) Project

Year of completion

Proscenium Residence Tower Project

Arcadis was engaged to provide the defined Technical Due Diligence services in relation to a solution to the difficulties potentially caused to the penthouse owner by the proposed gondola system for the 60th floor of the Proscenium Residence Tower Project

Crimson Resort and Spa Mactan (CSRM) is a beach resort located at Mactan, Cebu with an approximately lot area of 6 hectares. The property is comprised of East and West Villas, with a total number of 39 villas and 290 guest rooms combined. Aside from the Villas, it has a public area which composed of Main Building, AUM Spa, Crimzone, Rock Bar, Azure Beach Club, Infinity Pool, Kalma and Beach Front.

TDD Crimson Resort and Spa

Arcadis was engaged by Mactan Seascapes Services Inc. (MSSI) as the consultant to perform the property assets conditional assessment mainly focus on the damages that was caused by the Typhoon Odette “Rai”. With the rigorous visual inspection and on the solid engineering standpoints TDD Team come up with an appropriate interventions’ strategy for the damaged assets. TDD team in collaboration with QS Team from Cebu provided a detailed estimate of the expenditures of the proposed interventions found on the TDD.

Mactan Seascapes Services Inc. (MSSI) 2022

MPCALA Holdings 2022

Confidential 2022

PROJECT HIGHLIGHTS

We conducted an extensive TDD work for an investment capital firm, who aims to acquire the ownership of the shipyard. Phase 1 focused on high level risk ranking and CAPEX; Phase 2 expanded to encompass detailed assessment and life cycle costing and tenants commercial and legal aspects. We also perform the supporting works for design, procurement, and construction management.

Just within a month, our team completed the TDD work for a Japanese firm who wishes to purchase the tower. We developed an automation tool using the concept of tidy data to perform fast but accurate measurement and evaluation of assets, then using Arcadis's cost database to generate CAPEX and OPEX for 25 years that supported the Client to make optimal negotiation.

The TDD work was mainly on structural components of the building. In order to provide accurate outcomes, we conducted a series of tests on RC components, then using appropriate models to determine the compliance of the components, especially with regard to earthquake resilience. The work also included high level CAPEX for possible intervention strategies.

Aside from process evaluation for possible upgrade of 20 plus wastewater facilities of Manila Water, the team has conducted extensive condition assessment using the Asset Management practice of Arcadis. This work has directly contribute to support Clients to upgrade the facilities to meet the stringent environmental regulation (DAO2016) and to mitigate possible risks that might incur to their future operation.

We supported a global capital investment firm to perform rapid assessment on various Water Treatment Plants in Vietnam for the purpose of acquisition. Historical data was collected and analyzed by process experts with supports from local engineers who conducted site visits and interviewed operators and managers of the Plants. CAPEX and OPEX exercise were provided on the basis of process improvement programs.

Diligence and Asset Management for building and engineering systems

Large scale Shipyard

30 Storey Tower in BGC

Heritage Hotel Manila

Various Wastewater Treatment Plants

Various Water Treatment Plants in Vietnam

ASEAN PROJECTS

Yen Binh Industrial Park, Vietnam

JD.com

Client:

Client:

Client:

Client:

Logistics Site, Long An, Vietnam Nimit Langsuan Building, BKK, Thailand America Merrill Lynch, BKK, Thailand

Premier Hotel, BKK, Thailand

Pattaya, Thailand

ASEAN PROJECTS

MuangThai Phatra Complex, Thailand

Client: MuangThai-Phatra Services: TDD CFA: 70,000 sqm Year: 2017

The Circle 11, BKK, Thailand

Client: SSG Capital Management Services: TDD and Cost DD CFA: 36 floors with 219 rooms Year: 2019

Client: Blue Sky Asset Pus Ltd Services: Cost DD CFA: 70,000 sqm Year: 2017

Client: Tetra Pak Thailand Ltd. Services: Cost DD for expansion CFA: 6,000 sqm Year: 2014

Client: BMW Thailand Services: TDD and Cost DD

CFA: 15,000 sqm Year: 2016

Asset

Client: Alibaba Smart Hub (Thailand) Services: Cost DD CFA: 201,500 sqm Year: 2019

Grand Florida Beachfront, Thailand

Tetra Pak Training Center, Rayong, Thailand

BMW Distribution Center, BKK, Thailand

Cainiao and Lazada Warehouse, Thailand

ABOUT ARCADIS

Arcadis is the leading global Design & Consultancy firm for natural and built assets. Applying our deep market sector insights and collective design, consultancy, engineering, project and management services, asset management services we work in partnership with our clients to deliver exceptional and sustainable outcomes throughout the lifecycle of their natural and built assets. We are 27,000 people, active in over 70 countries that generate more than $3.3 billion in revenues. We support UN Habitat with knowledge and expertise to improve the quality of life in rapidly growing cities around the world.

IMPROVING QUALITY OF LIFE

MARK LESTER OGOT

Service Line Manager, Due Diligence & Asset Management

T: (632) 7908 2888

M: +63 927 619 9074

E: marklester.ogot@arcadis.com

Arcadis Philippines

NAM LE

PhD, M.eng - Data Scientist & Asset Management Specialist

Market Research, Due Diligence, Asset Management, and Data Solutions (ASEAN)

M: +63 927 022 1899 (Philippines)/ +84 983 780100 (Vietnam)

E: Le.Nam@arcadis.com

PAUL MAGBANUA

Executive Director, Resilience BU

T: (632) 7908 2888

M: +63 917 538 1406

E: Paul.Magbanua@arcadis.com

Arcadis Philippines