Reinstatement Cost Assessments

We are M&G Real Estate’s sole provider on their framework for Reinstatement Cost Assessments across their UK portfolio of properties. We undertake an annual reassessment of a proportion of their portfolio, together with all new acquisitions throughout the year. We have also provided assessments for numerous European acquisitions.

M&G's cross-sector portfolio has a significant industrial element, including many multi-let industrial estates, large distribution units and data centers across the UK. All portfolio properties are approached in the same way to ensure consistency and accuracy.

Our dedicated team work closely with the insurance team, development managers and property managers to ensure the smooth running of the framework. We meet regularly, initially to finalise the pre-inspection information and agree those properties to be included in each year’s portfolio, and then on a regular basis to review the assessments undertaken to identify any discrepancies in the Declared Values with previous assessments and/or the apportionment between units. We are responsive to the need for ad-hoc assessments on new acquisitions and developments and work closely with those undertaking the technical due diligence to make sure there are no delays. Such assessments are completed within 10 working days of instruction in accordance with the framework KPIs.

Here's an insight into our approach:

During our inspections we ascertain the gross internal area and establish the construction of the property elementally. We then adopt an elemental approach for each different type of construction to establish the most accurate re-building rate for the property. We steer away from the use of average prices in order to provide the most accurate rebuilding cost for the property – rather than a generic rate for properties of a similar type. While not initially a requirement of the framework, the merits of this approach were discussed and adoption agreed to ensure consistency across the portfolio. We highlight any tenant’s fixtures that we have included or excluded where this differs from the agreed schedule of tenant’s fixtures and fittings – this is particularly important as it is often the cause of tenant disputes, resulting in delays recovering premiums.

We ensure consistency in our report format using a firm-wide template system, and we developed a framework specific template to incorporate additional information that was useful for their internal audit systems. We use rigid QA procedures ensuring all reports are reviewed by a senior member of our team of experienced Building and Quantity Surveyors. 

We prepare a unit-by-unit breakdown of the reinstatement cost. These apportionments take account of the landlord’s insurance obligations for each unit and are used to calculate the premium due for each tenant. 

We also provide a consultancy service whereby property managers can make enquires as to whether new assessments are required following alterations made to the property either by the landlord or tenant. We undertake desktop assessments based on the information provided and by doing so ensure that the Declared Value is updated. We prepare desktop inflationary updates for certain larger value properties each year even though they are not being reassessed that year.

Ultimately, our consistent, detail-led approach and responsive partnership ensure M&G Real Estate can rely on accurate, timely reinstatement cost assessments that support effective insurance management across their evolving portfolio.

We were appointed to deliver a comprehensive purchaser’s Technical Due Diligence (TDD) report for Anchor Retail Park, a rare and strategically located mixed-use asset in London’s East End. As one of the few remaining inner London retail parks, the site offers significant landholding and long-term potential for capital enhancement and alternative uses.

Our multidisciplinary team worked closely with the client, DTZ Investors, to understand their acquisition priorities and deliver a robust technical assessment under tight time constraints. The site comprises a terrace of three-unit retail warehouses and a terrace of eleven four-bedroom houses.

Technical Due Diligence delivery

We undertook a full suite of Technical Due Diligence services, coordinating across disciplines to ensure a seamless and efficient delivery. In line with the client’s requirements, our Building Surveying, Mechanical & Electrical, and ESG teams produced detailed technical reports, including:

• Building Fabric and M&E Building Survey Reports
• Reinstatement Cost Assessment
• Level 5 EPC Assessment
• Peer review of a Phase 2 Environmental report
• NZC Audit with Decarbonisation Pathway

To ensure full regulatory and safety compliance, we also consulted our in house fire engineering specialists, who reviewed the site’s fire strategy and provided expert input to support the client’s risk profile.

Challenges and solutions

One of the key challenges was the complexity of the site, which included both commercial and residential elements.
Operating under tight acquisition deadlines, we mobilised quickly and delivered all services within the required timeframe. Our ability to coordinate multiple disciplines as well as specialist external consultants – while maintaining quality and rigour – was critical to the success of the project.

Another challenge was ensuring comprehensive environmental and fire safety assurance. Our team addressed this by conducting a peer review of the existing Phase 2 Environmental report and engaging fire engineering specialists to validate compliance and identify any risks.

Opportunities and outcomes

Anchor Retail Park represented a rare opportunity to acquire a substantial landholding in inner London, with strong existing use value and significant potential for future redevelopment or repositioning.

Our reporting provided the client with a clear understanding of the site’s current condition, regulatory standing, and long term potential. This enabled informed decision-making and supported a confident acquisition strategy.
By delivering a thorough and integrated due diligence package, we helped de-risk the transaction and position the client to unlock the full value of this unique asset.

To learn more about how we can help on your next retail project get in touch with Kevin Howes.

We were appointed by our client, Wirefox, to undertake the refurbishment of ‘The Leddie’ – formerly ‘The Ducks Inn’ – a boutique hotel based in Aberlady, along the East Lothian Coast in Scotland.

We provided full a Technical Due Diligence service at acquisition stage for our client, Wirefox, which later evolved into Full Cost Management and Principal Designer Services as the project progressed.

The project included the refurbishment of an existing 1800’s hotel and a cottage at the back. As significant alterations were carried out, we encountered some challenges.

Due to the age of the building, the management of unforeseen risks was key and fire strategy compliance was essential. Upgrading the existing statutory connections was also required to ensure enough supply was available to complete the works.

The building is located in a conservation area, so, it was crucial that the building and surrounding areas were treated with the upmost respect. We also ensured to maintain a close working relationship with the Architect and Planning Consultant, to ensure that design proposals were carefully considered, and the correct materials were selected to meet the budget.

We are pleased we have met Wirefox’s brief to upgrade the building, while ensuring the hotel is a safe and comfortable space for their guests.

A long-term partnership across nine years 
We were appointed by DWS through the entire lifecycle of two major office buildings in Cardiff, beginning with Technical Due Diligence for the acquisition in 2016 and culminating in their successful disposal in 2025. Over this nine-year period, Hollis delivered a wide range of services, all under one roof, demonstrating the value of a fully integrated consultancy approach.

Strategic support from acquisition to exit 
Our involvement began with technical due diligence during the acquisition phase. From there, we provided ongoing consultancy throughout the client’s ownership, including:

• Dilapidations and lease strategy: Settled a dilapidations claim on Building 4 to enable a short-term lease renewal. We then managed a complex strip-out project across three floors to support a rates mitigation strategy, working closely with the client’s ratings surveyor while maintaining tenant occupation on two floors.
• ESG and sustainability: Delivered EPCs and improvement reports, advised on MEES compliance and strategy, and prepared ESG due diligence reports for the vendor packs.
• Technical and operational services: Provided MEP engineering, vertical transportation consultancy, planned maintenance reviews, health and safety audits, measured surveys, and drone data capture.
• Tenant alterations: Provided technical advice in respect of tenant alterations and fit outs.   
• Planned Maintenance: Prepared a PPM for building 3. This allowed the client to get an understanding of the maintenance requirements over a 10-year period and set service charge budgets.  
   

A seamless disposal process 
In early 2025, we prepared comprehensive vendor TDD packs to support the sale of both buildings. The properties were successfully sold in October, marking the end of a strategic and collaborative journey.

Challenges and opportunities  
One of the most significant challenges was managing the strip-out of three floors in Building 4 while a tenant remained in occupation on two other floors. This required careful planning to maintain health and safety standards and minimise disruption. Shared M&E services added complexity, demanding precise coordination to avoid service interruptions.

The strip-out formed part of a rates mitigation strategy, which meant close collaboration with the client’s rating surveyor was essential. We worked proactively to ensure the scope and execution of the works met the client’s objectives for reducing rates liability on the vacated floors, while maintaining compliance and operational continuity for the occupied areas.

A showcase of multidisciplinary, in-house expertise 
This project exemplifies how Hollis can support clients across every stage of the property lifecycle. From acquisition to disposal, all services were delivered in-house, ensuring consistency, efficiency, and strategic alignment throughout.

We conducted full Technical Due Diligence on a portfolio comprising two assets in The Netherlands and the other in Spain.

Our client, Hines, was preparing to purchase the assets for their fund on a sale and leaseback arrangement. Offering our Technical Due Diligence service, we assessed the technical conditions, defects and implications of the assets prior to purchase, highlighting any risks and advising whether to proceed with the transaction.

Drawing on multiple disciplines, we provided a complete package of Technical Due Diligence (building survey and mechanical and electrical engineering), Fire Engineering, Reinstatement Cost Assessments, Environmental Phase 1, ESG Consulting including CRREM Analysis, and Measured Surveys for the asset in The Netherlands. Costs were supervised from our cost management team, liaising with the building surveying and mechanical and electrical engineering team for costs within the Capex schedules.

Due to the large scale and cross border nature of this project, the works required a diligent and disciplined approach. Having presence in Europe, we were able to coordinate various teams in a centralised location and keep our client informed and involved throughout.

Consistent with Hines’ value-focused logistics acquisition strategy, in addition to the high quality locations, the assets are highly functional for the needs of their current and future occupiers.

Our wider services included Dilapidations, Health, Safety and Quality, Measured Surveys and Area Referencing, and completion of a Reinstatement Cost Assessments for the refurbishment project of Burleigh House - a 30,000 sq ft Grade II listed office and retail property on The Strand in London. The project focused on enhancing the building’s office spaces while preserving and celebrating its rich historical character.

The refurbishment encompassed significant external upgrades to the facades along The Strand and Burleigh Street, showcasing the building’s distinctive Graeco-Roman and Venetian architectural styles. Inside, the entrance and reception areas were modernised to create a more welcoming and functional office space, complemented by improved facilities, a high-quality CAT B office fit-out, and the addition of a roof terrace.

Sustainability was a central focus of the project. We incorporated exposed existing construction materials, prioritised sustainable resources, and implemented strategies to minimise site waste. To support long-term goals, a Net Zero Carbon (NZC) report was prepared, outlining the asset’s pathway to achieving NZC status by 2050.

The Net Zero Report identified carbon reduction opportunities which were integrated into the refurbishment, accelerating some works by over 10 years. The following initiatives have been completed:

• BMS upgrades
• Installation of automatic tenant metering/submetering
• LV switch panel upgrade
• MVHR upgrades
• Change to demand-led ventilation
• Overnight base load reduction
• Lighting upgrades
• Adjusted temperature set points
• Installation of solar film
• Installation of insulation to the underside of the roof 

We worked closely with Montagu Evans (planning consultants) and Westminster City Council to secure planning permissions and listed building consent. Notably, there were no pre-commencement conditions, apart from the requirement for approval of facing materials.

Challenges and solutions

Working in an occupied building presented unique challenges, particularly due to the proximity of the Lyceum Theatre, which required careful coordination. We needed to relocate roof services to create a terrace, move the retail tenant’s extract system to accommodate plant works, and replace the LV switch panel - all while minimising disruption.

Regular communication with tenants, including weekly updates and targeted meetings, kept everyone informed and onboard. Early and detailed plans mitigated risks for impactful works like window repairs and system upgrades.

To avoid disturbing the Lyceum Theatre, external works were scheduled around showtimes, while out-of-hours activities were carefully timed to accommodate office and retail occupants. For the roof extract relocation, we worked closely with the retail tenant, ensuring their team’s presence to minimise downtime and avoid disruption to their operations.

Key Achievements

• All major project milestones, including sensitive tasks such as plant relocation and system replacements, were completed without disruption to tenants. The External works were also successfully carried out while maintaining the Lyceum Theatre’s operational schedule.
• We integrated sustainability goals into the design and construction, setting the building on its path to NZC by 2050. This project combined historic character with modern, efficient office spaces.
• The refurbishment of this iconic property on The Strand demonstrates our ability to manage complex projects in sensitive, occupied environments.

Through effective communication, meticulous planning, and close collaboration with key stakeholders, we are proud to have delivered a project that fully met our client’s goals. By enhancing the building’s functionality, celebrating and preserving its rich heritage, and aligning with ambitious future sustainability targets, we demonstrated our commitment to excellence and our passion for creating spaces that inspire while respecting their history.

Reinstatement Cost Assessment and Measured Surveys services for largest shopping centre in Europe

We were instructed to provide reinstatement cost assessments (RCA) for Westfield’s two premium retail shopping centres in London at White City and Stratford, including retail, restaurant, car parking and hotel accommodation. The scope included an extension development that at the time was nearing completion at White City, making it the largest shopping centre in Europe.

We carried out detailed inspection of all tenanted and common areas, and prepared reinstatement cost assessment reports including apportionment break-downs for the retail tenancies, to assist the head of risk management in future planning. Our Measured Survey team also undertook an off-plan exercise to determine the areas of each of the different space usages to feed into the RCA.

We were instructed by Network Space to undertake the area referencing measurement exercise of a portfolio of properties being brought to the market. The exercise enabled Network Space to verify the areas of the estates and ensured a set of assignable reports were ready for the purchaser.

We carried out a standard GIA survey of the warehouse properties and provided an overall schedule of areas for ease of reference and to quickly highlight any discrepancies, as well as individual referenced plans in respect of each site.

The tight timeline meant we had to measure and report on 25 estates totalling 1 million square feet within just three weeks. Our extensive office network enabled us to deliver the portfolio ahead of schedule.

The works led onto us being appointed by the purchaser of the portfolio, Infrared, to carry out pre-acquisition due diligence with associated reinstatement cost assessments.

We are delighted to have provided a multi-service offering to our client City Developments Ltd, enabling them to mitigate risk in their acquisition of St Katharine Docks in London. Our service offering included Technical Due Diligence, Mechanical and Electrical, Vertical Transportation, ESG Consulting, Environmental Consulting, and Reinstatement Cost Assessments. 
 
An iconic site, St Katharine Docks Marina is a 525,449 sq ft riverside and marina office and leisure estate located in the heart of Central London. Originally constructed circa 1830, St Katharine Docks has a rich history in the British trading empire, facilitating the trade of luxury goods. The effects of the Second World War led to the regeneration of St Katharine Docks in the 1970s to what it is today. 
 
St Katharine Docks is arranged over four principal buildings: Devon House, International House, Commodity Quay and Ivory House. Additional ancillary buildings including the Marble Quay, Dickens Inn, Cloisters Walk, and the Haven building complete the site alongside the marina, carpark and public realms areas. Since its redevelopment, St Katharine Docks now attracts over 5.9 million visitors per annum. 
 
We were instructed to inspect, report and provide commentary on the condition of the properties and public realm demised to St Katharine Docks. Providing a multi-service offering, a dedicated team of building surveyors, specialist mechanical, electrical and lift engineers, and both environmental and ESG consultants inspected the properties. A pre-acquisition survey report was produced detailing the condition of the building in conjunction with an M&E report, ESG report, full phase 1 Environmental report and a Reinstatement Cost Assessment for the entire site. 
 
Given the scale and complexity of the site, it was imperative that we coordinated our services to inspect all required areas within the transaction timetable. Out inspections remained sensitive to the requirements of the vendor, who wished for minimal disruption to the operations of the occupiers. Showing excellent client care and being sympathetic to both our client and vendor requirements, we were able to overcome all challenges, all whilst adopting a ‘one team’ approach and working collaboratively with all stakeholders. 
 
We are proud to have delivered for our client on such an iconic and historic area of real estate in central London.