Due diligence plays an important role in real estate transactions. The larger the deals, the more complex the check. Without virtual data rooms, this is almost no longer feasible. But they are not only helpful for transactions, reveal Director Data Management Services Alexander Demmelmayr and Nicole Dittrich, Co-Head of DMS.
Three facts about the episode “No real estate transaction without digital data rooms and document management systems (DMS)?”
What are data rooms and DMS?
At the beginning of the podcast episode, Alexander Demmelmayr explains briefly and comprehensibly what data rooms are and what advantages they have: “Real estate companies have a lot of physical and digital data at their disposal, which they prepare for various applications with the help of data rooms or document management systems. The data can be made available to the respective authorized users. At its core, it is therefore digital platforms on which all relevant technical, commercial and legal documents are digitally compiled in one place.” The big advantage: Processes can also be attached to the documents that are executed automatically. And external users can also gain access, which is very important in real estate transactions. But data rooms and DMS are not only used for real estate transactions, the data room expert reveals.
For which asset classes are data rooms used?
Data rooms and document management systems can be used for all asset classes. Depending on the asset class, however, there are different requirements for the data room. On the one hand, there are differences in the structure, but also in the size and also in the filling of the digital data rooms. For example, a shopping center usually has a very large tenant documentation that must be well structured. In addition, there are also differences between existing buildings and project developments.
DMS & Data Room: Challenges and Benefits
The challenge often lies in the amount of data, Dittrich explains at the end of the recording. For example, she and her team recently had to create a data room for the sale of a shopping center. In the process, they selected the relevant documents from 80,000 files for the sale. In the end, only about 6,000 files remained. Demmelmayr adds: “The challenge is not only to consolidate the existing data, but also to recognize which data is missing and to obtain it so that complete documentation is available.”
In the current podcast episode, you can find out in which areas data rooms are still being used, what challenges our team still has to contend with, and how great the fear is of being replaced by artificial intelligence. So listen in now!
