K&M was retained by PNC Leasing LLC to assist with the technical due diligence of a sale-leaseback transaction for the wastewater collection network in the city of Ulm, Germany. PNC Leasing LLC would purchase the assets from the public authority and lease the assets back to the public authority over 26 years. At the end of the lease term, the public authority would have the option to either purchase the assets or enter into a wastewater services contract with PNC. K&M performed an independent technical review of the engineering due diligence report of the wastewater collection and treatment facilities. K&M also reviewed the asset appraisal report, the wastewater services contract, and the facility support and access agreement between the city and the PNC. K&M commented on the methodology, assumptions, and results of the asset appraisal to identify any adjustments or potential issues with the contractual arrangements, including an assessment of the transaction against “arm’s length” criteria. The system includes 558km of sewerage lines.