Our client is a private business group that had invested substantial funds passively in a real estate development project in Eastern Europe. The project had reportedly run over budget and was seeking further investment from its initial investors.
Arch was commissioned by our client to undertake a due diligence review of the project. The goal was to confirm progress reports against physical development on the ground and against the original business plan.
Arch retained an associate firm with specialist project experience to assist with the due diligence onsite. We also audited the financial records of the project. Our due diligence review showed that the project’s managers and promoters had diverted some of the original investment to other projects which dishonoured the terms of the original investment. We provided our client with the evidence they needed to seek redress.