What investment committees really test

The questions that always come

They are remarkably consistent across houses. Address them in the memorandum and you usually clear the first round.

• Why is the owner selling, and why now?
• Who else bid and where did they land?
• What happens if the largest tenant does not renew?
• What does the exit look like and who buys in five years?
• Which capex is unavoidable in the first three years?
• How does the asset perform on energy, and what does upgrading cost?
• Which business plan assumptions are the most sensitive?
• What does the downside case look like and does it cover debt service?
• What covenants does the financing carry and how much headroom remains?
• What if letting takes twelve months longer?

Answer versus evidence

Committees accept judgement, but only with derivation. "The rent is at market" does not carry; three comparable deals from the last twelve months with sources does. That research is legwork, and it decides the meeting.

Timing

Ask about the committee calendar early. Many processes fail not on approval but because the next sitting falls after exclusivity expires. We set process deadlines around it deliberately.