Transit Oriented Development and Value Capture Hong Kong

Transcription

1 UNESCAP Regional Expert Group Meeting on Sustainable and Inclusive Transport Development and 2 nd Asia BRTS Conference, 29 Sep 1 Oct 2014, Ahmedabad Transit Oriented Development and Value Capture Hong Kong Dr. Wing tat HUNG Associate Professor Department of Civil and Environmental Engineering 1

2 218 km 84 MTR stations 68 Light rail stations 4.5 million passenger daily (40% of total public transport patronage) Source: Hong Kong Railway Development Strategy

3 TOD Railway Development Strategy

4 Proposed New Lines/ extensions up to estimates (USD, billion) Northern Link and Kwu Tung Station 2.97 Tuen Mun South Extension 0.71 East Kowloon Line 3.55 Tung Chung West Extension 0.77 Hung Shui Kiu Station 0.39 South Island Line (West) 3.23 North Island Line 2.58 TOTAL

5 District road Transit Oriented Developments District open space and low density land use District centre functions With High density private housing Traffic free high density mixed housing TOD 500m walk-in zone to station District centre functions With High density private housing 3D Principles: High Development Density Intensive and efficient land use within the station walk-in catchment area Land Use Diversity Enhance the life and vibrancy of the community Local road with feeder buses High-Quality Community Design Seamless connection and interchange, segregation of pedestrian and vehicular traffic, greening environment 5

6 Seamless 6 MTR Corporation

7 Unique Rail + Property Business Model Land Development Right Land Premium on Greenfield Basis Builds railway together with property as integrated development Value capture from property for financing the construction and running of a new railway line 7

8 RAILWAY PLUS PROPERTY DEVELOPMENT FINANCING MODEL Mass Transit Railway Corporation Ordinance passed by the Legislative Council in May 1975 An independent corporation working on prudent commercial principles Granting of development rights on land plots of stations Ensure seamless design of stations to facilitate riderships Property sales and rental profits covers capital investments of the railway lines Fare income covers the operating costs 8

9 Rail + Property (R+P) Design Concept Property Development Landscape Podium Shopping Mall Depot Seamless Connection between Station and Development Railway Station Decked Road (Private Transport) Public Transport Interchange (PTI) 2014/10/20 MTR Corporation Page 9 9

10 How Does the R+P Model Work? Conduct planning and development review for new rail extension and agree with Government amount of property development rights Land premium is negotiated with Government on greenfield basis *, prior to tender being offered to developers Competitive tender of property packages to developers MTR contributes property rights, oversees the design and construction Developers normally pay land premium and development costs Profit sharing with MTR Percentage of profits Assets in kind *Greenfield basis = market value ignoring the presence of the railway Kowloon Station Development Tung Chung Station Development Tseung Kwan O LOHAS Park Development 10

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12 Rail + Property (R+P) Developments by MTR 43 property projects above stations with total GFA of 13 million m 2 Tsing Yi Lohas Park Kowloon Station Tseung Kwan O Station 2014/10/20 Hong Kong Station

13 Funding arrangement of railway development in Hong Kong Year of Completion Rail Link Length (Km) Project Cost (HK$ in billion) Funding Arrangement 1910 East Rail Entirely funded and owned by Government 1979 Kwun Tong Line Funded by Government equity injection to MTRC and commercial borrowing guaranteed by Government 1982 Tsuen Wan Line Entirely funded by commercial borrowing arranged by MTRC, partially guaranteed by Government 1985 Island Line Funded by Government equity injection to MTRC, profits from property sales and commercial borrowing guaranteed mainly by Government 1988 Light Rail Transit Funding arranged by KCRC 1998 Tung Chung Line Airport Express HK$23.7 Bn Government equity injection and HK$11.4 Bn commercial borrowing arranged by MTRC 2002 Tsueng Kwan O Funded by property sales and commercial borrowing by MTRC Extension 2003 West Rail % funded by Government and 50% by KCRC commercial loan 2004 Mo On Shan Link & TST extension 2005 Penny s Bay Rail Link (Disney Resort Line) HK$8.5 Bn Government equity injection and HK$7.8 Bn KCRC borrowing; estimate HK$4.3 profits from property development Government waived dividend of HK$0.8 Billion; shortfall covered by commercial loan 2006 Tung Chung A cable car project; funds arranged by MTRCL 2007 Lok Ma Chau Spur Line Internal funds and commercial borrowing arranged by KCRC 2009 Kowloon Southern Link Funds arranged by KCRC 1USD=7.75HKD 13

14 Financial arrangements of five New Projects under construction 2017 Hong Kong section of the Guangzhou Shenzhen Hong Kong Express Rail Link Shatin and Central Link Government funded XRL is an express rail of a total length of about 140 km linking up Hong Kong with Guangzhou; totally funded by Government 2015 Kwun Tong Line Extension Funded by the Rail-and-Property Model with proposed property developments to support the construction costs. Government granted 2014 Southern Island Line (East) development rights to pay the funding gap 2014 West Island Line Government paid 12.7 billion funding gap 14

15 MTRC residential properties along urban lines 15

16 Property Development Tsuen Wan Station Luk Yeung Sun Chuen 16

17 Property Development Chai Wan Station Heng Fa Chuen 17

18 MTRC commercial properties along urban lines 18

19 Property Development Kowloon Bay Station Telford Gardens, Telford Plaza I, Telford Plaza II 19

20 Property Development Olympic Station HSBC Centre, Bank of China Centre, Olympian City One, Island Harbourview, Park Avenue, Central Park, Olympian City Two Harbour Green 20

21 Property Development Hong Kong Station One International Finance Centre, Two International Finance Centre, IFC Mall, Hotel and Suites Hotel 21

22 MTRC property developments along Tseung Kwan O Line 22

23 Property Development LOHAS Park Station The Capitol, Le Prestige 23

24 Property Development Hang Hau Station Residence Oasis 24

25 FINANCIAL PROFILE OF MTRC 25

26 MTRC PROFILE 26

27 Creation of Financial Benefits For The Public Purse Total Value to Government In HK$ (As at 31 July 2012) Property development along railway lines Land Premium $97.9b Market Cap (76.6% share as at 31 July 2012) Cash Dividends IPO Proceeds Initial Investment by Government $120.1b $14.1b $10.5b ($32.2b) Government Gain $210.4 b US$1 = HK7.8 Plus Other Economic and Social Benefits 27 Page 27

28 Thank You! 28