Client: Tech-Focussed Real Estate Investment Trust
Real Estate deal team requested geopolitical diligence for a data centre investment in South Africa to address political and regulatory risks, especially prospects of ‘expropriation without compensation’.
Defined scope of work and assessed deal sensitivities
Preparatory briefing to bring deal team ‘up to speed’
Expert roundtable with political, regulatory and legal input
Investment Committee paper
Outcome: Client lowered its planned bid to reflect the ‘geopolitical risk premium’ associated with the acquisition, primarily due to concerns about long-term trends (and thus exit multiples).
We have foregone direct engagement with in-market stakeholders; Gatehouse has shown us that the power of conversation is hugely underestimated in geopolitics.