Big Deals, Big Challenges: Due Diligence at Scale for Large Residential Portfolios

Acquiring a large residential portfolio whether in purpose-built student accommodation (PBSA) or build-to-rent (BTR) presents a different order of complexity than single-asset deals. With dozens of buildings across multiple locations, compressed timelines, and inconsistent documentation, the technical risk profile becomes harder to see, and far more important to understand.

In these situations, expert-led due diligence isn't just helpful it’s a necessity.

‍

Lessons from a Large Portfolio Acquisition – Pre-Exclusivity Insight That Shaped the Bid

In a recent multi-asset transaction, Kingswood was engaged to support an institutional investor during the pre-exclusivity bid stage. With limited access and a short window, the task was to extract as much insight as possible to shape a confident offer and define what would need to be resolved during exclusivity.

We deployed a coordinated, risk-led review across the portfolio, working from the data room and vendor materials to identify the issues most likely to impact value or deliverability. Missing fire safety documentation, signs of envelope deterioration, and inconsistent maintenance records all featured in the early findings.

The result? The investor was able to:

• Price their bid with confidence, factoring in known and anticipated risks
• Clearly set out the scope of exclusivity in their submission
• Demonstrate credibility and preparedness in a competitive field

By focusing on material risks upfront, the investor gained a commercial edge while maintaining optionality until the facts could be fully validated. Crucially, they also demonstrated that their bid was grounded in real analysis, giving the vendor confidence that this was a serious, credible party, not just testing the water.

‍

Rapid, Risk-Focused Due Diligence – How It Adds Value

This type of early-stage technical review doesn’t aim to uncover every defect it focuses on what’s most likely to change the shape of the deal. In this case, fire safety systems, building fabric risks, and CapEx exposure were triaged and escalated, allowing the buyer to structure their underwriting and exclusivity plan accordingly.

But beyond identifying risk, due diligence can also reveal upside. Our review uncovered opportunities for refurbishment, performance improvement, and cost efficiency insights that went straight into the client’s business plan for the platform.

For investors and fund managers, the takeaway is clear: technical insight strengthens commercial outcomes. It enables sharper pricing, faster decisions, and greater control through exclusivity and post-deal execution.

‍

Managing Complexity at Scale – Practical Insights

For those navigating large portfolio acquisitions, here are four key principles we apply at Kingswood:

1. Assemble the right team, early

Due diligence at scale demands tight coordination and clear leadership. Bring in advisers with portfolio-level experience, and establish a centralised process to align inspections, data review, and reporting. Commission management and clear communication is critical.

2. Take a risk-led approach

With limited time, focus on what matters most: compliance, structural integrity, major CapEx, and anything that could block deal execution. Triage findings to surface showstoppers early.

3. Standardise and synthesise – or risk losing the narrative

Consistent formats across assets are essential. In one recent deal, the vendor’s own reports contradicted each other, some aligned to scope, others omitted critical items. The inconsistency undermined the credibility of their case and cast doubt on all the data provided. A robust, synthesised view supports investment committee clarity and underwriting confidence.

4. Align technical with commercial

Use findings not just to flag risk, but to shape value. CapEx schedules, compliance remedies, and improvement opportunities should all feed into the pricing model and the asset business plan.

‍

Final Thought

Big residential deals bring opportunity but also exposure. In today’s market, where regulation is tighter, scrutiny is higher, and capital is selective, technical due diligence is a competitive advantage.

At Kingswood, we help investors navigate that complexity with clarity, offering the insight to unlock value, manage risk, and deliver confidence at every stage of the deal.

Looking at a platform acquisition or large portfolio opportunity? We’d be happy to share how we approach it.