When you’re looking to buy, sell, or refinance a petrol station, all interested parties will want to know the condition of the property. This will help determine the value of the property and if there are any issues that should be addressed that will allow for maximum borrowing capacity, selling opportunities, and peace of mind when purchasing.
If you are looking to buy, sell, or get finance for a service station here are some ideas that you should consider as a part of your Due Diligence Process.
SIRA
You should review the site’s SIRA data when you are going through your Due Diligence Process. This should be the first step in determining whether or not the site has issues with fuel losses or gains. Both of these are concerning and need to be investigated.
Underground Tanks and Fuel Line Integrity Testing
If there is a loss or gain in the SIRA data, you should determine if the issue with these inconsistencies is due to an issue with the underground fuel tanks or fuel lines, referred to as UPSS. There are significant costs to repairing a UPSS, so make sure to consider this as one of the most important steps when you are looking to buy or manage a site.
Water Monitoring Wells
If the site has water monitoring wells, then it will be relatively cheap and quick to assess these wells to determine if there is significant contamination within the groundwater that is beneath the site. Consider requesting a water monitoring well when you are purchasing a site if the site does not already have one.
Tank Pit Wells
These can be assessed easily and monitored in the future similar to water monitoring wells. Tank pit wells are more common with new site builds.
Soil Sampling
If the soil on the site you are considering is contaminated, remediation may be required. This can sometimes mean excavation and removal of soils offsite. Assess soils onsite as part of your Due Diligence Process to lower any possible liabilities.
Making sure you review all of the following as a part of your Due Diligence Process is important to making sure you aren’t purchasing a petrol station that will require significant capital to ensure compliance. Consider all of these factors when you are looking to purchase or manage a property to ensure that there are no surprises after purchase.
At ServoPro we have partnered with NEO Consulting who specialise in due diligence reports for petrol stations. For more information, contact us.