Finance
Due Diligence Guidelines for Ventures
NOTE: These Due Diligence Guidelines are provided as general guidance only.
Each proposed privatized transaction is a unique opportunity. There may be a degree of similarity with other privatized transactions ¨C but each opportunity is unique.
The information provided will vary by transaction. Do not assume that the information provided for a similar transaction will be sufficient for the currently contemplated transaction.
It is highly suggested that you meet with the System Facilities Office as soon as you initially contemplate a privatization transaction.
Application
This guideline is applicable for proposed transactions that utilize private bond proceeds to fund a portion or all of the development cost. It does not include private money as a gift. Transactions include development on ¾º²Â×ãÇòapp,Âò×ãÇò¾º²Êapp of Regents property, whether or not the ¾º²Â×ãÇòapp,Âò×ãÇò¾º²Êapp of Regents rents the improvements, and development not on ¾º²Â×ãÇòapp,Âò×ãÇò¾º²Êapp of Regents property when the ¾º²Â×ãÇòapp,Âò×ãÇò¾º²Êapp of Regents will rent the improvements.
Pertinent ¾º²Â×ãÇòapp,Âò×ãÇò¾º²Êapp Policy
See due diligence for appropriate portion of transaction.
Pertinent Agreements: Ground Lease
Submittal Guidelines
Prior to ¾º²Â×ãÇòapp,Âò×ãÇò¾º²Êapp Information Item
A. Team member list (firm name, principals, officers, main participants), including counsel (update as necessary through-out transaction processing)
B. Entity that will be Lessee and / or Landlord
- Entity name
- Type of legal entity
- Relationship(s) of entity to the University System of Georgia*
- ¾º²Â×ãÇòapp,Âò×ãÇò¾º²Êapp members, trustees, etc, including relation, if any, with the University System of Georgia*
- Officers, including relation, if any, with the University System of Georgia*
- Employees who are also employed by the University System of Georgia*
- List of all existing agreements with the University System of Georgia*
- List of all assets, including the value of each asset.
* The University System of Georgia is to include the ¾º²Â×ãÇòapp,Âò×ãÇò¾º²Êapp of Regents, any University System of Georgia institution, any cooperative organization of the ¾º²Â×ãÇòapp,Âò×ãÇò¾º²Êapp of Regents and / or any cooperative organization of any University System of Georgia institution.
C. Program schedule
D. Financing schedule
E. Draft Pro-formas
- Development Budget
- Construction Budget
- Institution Pro-forma
- Foundation Pro-forma
F. Conformance with Master Plan
G. Conformance with Institutional mission
H .For Housing ¨C Housing Plan including marketing study
Prior to ¾º²Â×ãÇòapp,Âò×ãÇò¾º²Êapp approval
A. 100% Design Documents
B. Complete due diligence (as applicable) for:
- Ground Lease
- Rental Agreement as Tenant
- Demolitions
- Easements
- Gift or purchase of real property
C. Recordable property survey
D. Environmental Assessment
E. Title examination
- Title certificate
- If ¾º²Â×ãÇòapp,Âò×ãÇò¾º²Êapp of Regents property
- Date(s) real property acquired. If within past 25 years - What is the cost of acquisition and the source(s) of funding.
- Date(s) facilities constructed. If within past 25 years - What is the total cost of development and the source(s) of funding.
- Date(s) of any facilities renovations, additions, etc - If within the past 25 years - What is the total cost and the source(s) of funding.
F. Updated program schedule G. Updated financing schedule H. Updated pro-formas (final except for pricing)
Prior to executing ground lease agreement
Note: Minimum of three weeks required after finalization of ground lease to obtain execution.
A. Preliminary Official Statement
B. Updated pro-formas
C. Trust Agreement (if not BOR property)
Prior to executing rental agreement
A. Final pro-formas based on pricing
After Bond Sale
A. Official Statement
After construction completion
A. Revised survey and amendment to ground lease
B. Certificate of Occupancy
Annually
A. Updated pro-formas
- Institution pro-forma
- Variance from final pro-forma
- Variance from prior pro-forma
- Foundation pro-forma
- Variance from final pro-forma
- Variance from prior pro-form