How MTR Builds and Connects Communities in Hong Kong

Transcription

1 How MTR Builds and Connects Communities in Hong Kong David Tang Property Director, Hong Kong 21 June /6/18 Page 1

2 Introduction 27/6/18 Page 2

3 Where is Hong Kong? MTR s projects outside of Hong Kong Operate & Maintain model Barcelona Hong Kong 27/6/18 Page 3

4 About Hong Kong (Source: Wikimedia Commons, 2011) Land Area km 2 (43% Country Park) Built-up Area 265 km 2 Population Car ownership 7.39 million 1 vehicles / 4 households Public Transit % 90% 27/6/18 Page 4

5 About MTR Establishment of MTR (1975) Merger with KCR (2007) st railway line opened (1979) MTR was listed in Stock Exchange of Hong Kong (2000) 27/6/18 Page 5 Market Cap HK$265 billion (31 May 2018)

6 Railway Serves as Backbone of Transport Land Uses % Within 500m of a Railway Station Housing Units 42% Commercial & Office GFA 75% (Source: Planning Department, 2013) 27/6/18 Page 6

7 Life in Hong Kong Revolves Around Railway (5.8 million daily passenger trips) School Home Railway Office Railway Home BUS STOP Shopping Mall Public transport 90% Rail market share 49.1% Efficient train service at affordable fare No direct Government subsidy on rail Country Park 27/6/18 Page 7

8 How is this possible? 27/6/18 Page 8

9 Planned by Government as a Connected City l l l Railway as the transport backbone High density development along railway lines Property development integrated with railway to support railway construction 27/6/18 Page 9

10 Transit-oriented Development (TOD) Approach for Planning of New Railway Corridors Comprehensively planned and implemented TOD development above and around a station Good connection to station by walkways & provision of convenient public transport interchange for feeders 27/6/18 Page 10

11 MTR Provides the First and Last Mile to Daily Trips Station site as Origin and Destination of travel Rail + Property Model à Sustainable Communities 27/6/18 Page 11

12 Why Rail + Property Model? 27/6/18 Page 12

13 The Challenge of Railway Funding Page 8

14 Rail + Property Funding Model Initial CAPEX Replacement CAPEX OPEX Railway Fare/ Other Revenue $ (NPV) Funding Gap Cash OUT Property development profit to fill new railway project funding gap Cash IN 27/6/18 Page 14

15 Financial Functions of Rail + Property Model: Capture Value-Add and Increase Ridership Property Seamless Connectivity àenhance Land Value (Source: (Source: Google Google Earth Earth,2015),2015) Enhanced Value + Increased Ridership = Funding Gap Natural Customers àincrease Ridership Railway 27/6/18 Page 15

16 Rail + Property Model Implementation Process 1) Ascertain rail funding gap 3) Land premium to Government Land premium based on Greenfield Site (i.e. pre-railway basis) Payable to Government at time of land development 5) Property value increases with railway presence 2) Assess amount of land rights required to bridge funding gap 4) Developer s contribution All or a portion of land premium Construction and other development costs 6) MTR Assess Corporation s amount of benefit land rights Share of property required to development profits bridge funding used to fund new railway gap

17 Coordinated R+P Project Implementation Property Railway Institutional Mechanism 27/6/18 Page 17

18 Vertical and Horizontal Integrated Development Residential Offices Shopping Malls Schools Green Spaces Public Facilities PTI Railway 27/6/18 Page 18

19 People- Centric 27/6/18 Page 19

20 Seamless Integration 27/6/18 Page 20

21 Examples of Rail + Property Developments 27/6/18 Page 21

22 Rail + Property Case Study 1 Airport Railway Five mixed-use communities along the line Hong Kong Total GFA (sqm) 415,900 Kowloon 1,090,010 Olympic 667,650 Tsing Yi 291,870 Tung Chung 1,028,910 Total 3,494,340 Office: Commercial: Residential: 612,000 sqm 308,000 sqm 28,000 units Page 22

23 R+P Development Kowloon Station Kowloon Station International Commerce Centre Hong Kong Station International Finance Centre 27/6/18 Page 23

24 Kowloon Station - Comprehensive Development Residential Buildings Hotel / International Commerce Centre Hotel / Service Apartment Regional Shopping Mall, Railway Station Public Transport Interchange 27/6/18 Page 24

25 Kowloon Station Development Station Area: 13.5 ha ICC Mixed Use Development Super Grade A office tower (118-storey ICC) Regional shopping mall Two 5 / 6-star hotels & service apartments 6,400 flats Total gross floor area: 1,090,000 sq.m. 27/6/18 Page 25

26 Kowloon Station Development 27/6/18 Page 26

27 Rail + Property Case Study 2 Tseung Kwan O Line Four mixed-use communities along the line Total GFA (sqm) Tiu Keng Leng 253,700 Tseung Kwan O 289,400 Hang Hau 142,100 LOHAS Park 1,652,800 Total * 2,338,000 Commercial: 153,980 sqm Office: 5,000 sqm Residential: 34,300 units Page 27

28 LOHAS Park Biggest R+P Project l Site Area: 32 hectares l Total GFA: 1.6 M m2 (Plot Ratio about 5) l 50 residential towers (25,500 units) l 45,000 m2 shopping centre l Community facilities l Transport interchange facilities l Extensive landscaped open space A township for 68,000 people above a railway depot & station Station Depot 27/6/18 Page 28

29 Building a Self-sufficient, People-first Community 27/6/18 Page 29

30 25,500 Homes Connected to Everything Needed To LOHAS Park Station Walkway to Shops To regional open space and soccer school To other residential development Grade-Separated Design Walkway to Connect Buildings 27/6/18 Page 30

31 Convenient, Comfortable & Green Living Page 31 27/6/18

32 Key Benefits MTR Corporatio MTR Page Corporation 32 27/6/18 Page 32n

33 Benefits of Rail + Property Model GOVERNMENT Finance construction & improve ridership Financial benefits Property SYNERGY of RAIL + PROPERTY Improve accessibility & land value Railway Sustainable urban living & enhanced quality of life SOCIETY & ECONOMY 27/6/18 Page 33

34 Contributions to MTR Underlying Profits (2017) HK Transport Operations & Station Commercial Mainland of China & Int l 8,4% 40,8% HK$ 10.5B 32,4% 18,4% Property Development HK Property Rental & Management

35 Recurrent Income from Investment Properties Total Rental Portfolio: ~ 275,400 sq. m. Lettable Floor Area Value and Income (HK$ billion) Office 14% 39,410 sq.m. Others 6% 17,764 sq.m. Retail 80% 13 Shopping Malls 218,251 sq.m. Telford Plaza (Retail) Elements (Retail) PopCorn (Retail) Two IFC (offices)

36 Help to Finance Enhanced Passenger Service l Replacement of signalling system ) l Replacement of existing 93 8-car trains ) l Purchase of 40 light rail vehicles ) Over HK$ 10 Billion l Purchase of 68 new double-deck buses ) l Other improvement projects ) Affordable fare affordability Efficient Service Increased mobility

37 Enable Affordable Rail Fare From : l MTR fare increase on average: 2.9% per annum l Hong Kong inflation rate: 3.4% per annum l Average increase in household income: 4.5% per annum Affordable fare Efficient Service Increased mobility 2017Average Fare (HK$): l Domestic service: $7.84 l Cross-boundary service: $29.11 l Airport Express (35 km): $64.75 MTR Corporation

38 Optimise Utilisation of Valuable Land Conveniently located land above railway station being used multiple times for: l l l Railway transit/ transport interchange Residential/ commercial uses Community uses / public realm 27/6/18 Page 38

39 Build Self- sufficient Communities (e.g. LOHAS Park) Educational K P 2 Kindergartens 3 Primary Schools K P S O H E 2 Secondary Schools Social/ Recreational T I Early Education & Training Centre Centre for Community Care and Support Services for Elderly Supported Hostel for Mentally or Physically Disabled Handicapped Persons Residential Care Home for the Elderly Integrated Children & Youth Services Centre H T O K P T S U C I E R C R Community Hall Indoor Recreation Centre K Others S P K T Police Post (inside MTR Station) U Public Transport Interchange 27/6/18 Page 39

40 Provide a Greener Living Environment Bigger transport capacity Higher energy efficiency Reduce carbon footprint Maximum 2-way passenger flow/hr (Source : UITP) Page June 2016

41 Conclusion Rail +Property model is proven to work well for Hong Kong in the financing of capital intensive railway projects Vibrant, self-sufficient communities are built along railway lines to provide people with all the needed facilities and services Building and connecting communities under the R+P model contributes to green and sustainable urban living 27/6/18 Page 41

42 Page 42 27/6/18 caring for life s journeys MTR Corporation