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R+P Model for Sustainable Urban Development
Famous for building and operating Hong Kong’s world-renowned public rail network, the MTR Corporation has also been exporting its unique rail-plus-property integrated urban development model.
27 March 2015
The MTR is exporting its R+P expertise to other cities undergoing rapid urbanisation
At a Glance
- The MTR’s unique rail-plus-property model creates an integrated community, providing housing, shopping, office and leisure facilities under one roof, with easy access to public transport.
- The R+P model requires no direct government financing, Instead, the government receives significant land premium and enhanced equity value through majority shareholding in the MTR Corporation.
- The MTR Corporation is now replicating this successful model in major urban cities in the Mainland China.
- The MTR Corporation, with its Hong Kong partners, have a proven track record to export this rail-plus-property model to other cities around the world.
The backbone of Hong Kong’s world-renowned public transportation network, the MTR carries an average of 5.4 million passengers each day, with safety and reliability records that are the envy of major world cities.
Apart from providing a world-class commuter service, the MTR Corporation also builds quality communities. Its unique rail-plus-property (R+P) integrated urban development model, rolled out in Hong Kong over three decades, has resulted in the completion of some 100,000 residential units and more than two million square metres of commercial space, providing housing, shopping, office and leisure facilities attached to 39 MTR stations.
Property developments built around stations give residents convenient access to public transport, which in turn, stimulates patronage and enhances land value. This business model also benefits the travelling public because the cost of building new railways is borne by profits generated from property sales.
The model requires no direct government financing. Instead, the government receives significant land premium and enhanced equity value through its majority shareholding in the Corporation. For developers, properly planned sites mean less risk and uncertainty for the investment.
Its success is proven: in 2014, HK$4.21 billion was made on MTR’s Hong Kong property developments, following profits of HK$1.39 billion in 2013, and HK$3.23 billion in 2012.
Today, the corporation is exporting its R+P expertise to other cities undergoing rapid urbanisation, joined by private consultancies. Two major projects in Shenzhen and Tianjin in the Mainland China illustrate the MTR’s and its partners’ innovative solutions for major infrastructure development, and the fruitful results of the R+P model.
Apart from providing a world-class commuter service, the MTR Corporation also builds quality communities. Its unique rail-plus-property (R+P) integrated urban development model, rolled out in Hong Kong over three decades, has resulted in the completion of some 100,000 residential units and more than two million square metres of commercial space, providing housing, shopping, office and leisure facilities attached to 39 MTR stations.
Property developments built around stations give residents convenient access to public transport, which in turn, stimulates patronage and enhances land value. This business model also benefits the travelling public because the cost of building new railways is borne by profits generated from property sales.
The model requires no direct government financing. Instead, the government receives significant land premium and enhanced equity value through its majority shareholding in the Corporation. For developers, properly planned sites mean less risk and uncertainty for the investment.
Its success is proven: in 2014, HK$4.21 billion was made on MTR’s Hong Kong property developments, following profits of HK$1.39 billion in 2013, and HK$3.23 billion in 2012.
Today, the corporation is exporting its R+P expertise to other cities undergoing rapid urbanisation, joined by private consultancies. Two major projects in Shenzhen and Tianjin in the Mainland China illustrate the MTR’s and its partners’ innovative solutions for major infrastructure development, and the fruitful results of the R+P model.
Mixed-use Development
Victor Chan, MTR’s General Manager-China Property, explains that the Corporation, which built the second phase of Shenzhen Metro Line 4 (Longhua Line), has been running the entire line through its wholly-owned subsidiary MTR Corporation (Shenzhen) Ltd since 2011 before it won a bid to buy a site above the Shenzhen depot.
“Tiara is located in Longhua, a new district with booming development, about 25 minutes from Futian,” Mr Chan explained.
A mixed-use development with a total floor area of about 206,167 square metres, Tiara upon completion will feature 1,698 residential flats, a large-scale shopping centre and expansive central garden, with leisure and entertainment facilities, including indoor and outdoor swimming pools, a gymnasium, and space for community cultural events, exhibitions and launches. It will be managed by the Corporation’s professional team.
“Tiara is located in Longhua, a new district with booming development, about 25 minutes from Futian,” Mr Chan explained.
A mixed-use development with a total floor area of about 206,167 square metres, Tiara upon completion will feature 1,698 residential flats, a large-scale shopping centre and expansive central garden, with leisure and entertainment facilities, including indoor and outdoor swimming pools, a gymnasium, and space for community cultural events, exhibitions and launches. It will be managed by the Corporation’s professional team.
An artist’s impression of the MTR’s rail-plus-property integrated urban development project in Shenzhen
New Vision
Tiara is expected to be completed in early 2017, with pre-sale to start in the first half of 2015. Already, the innovative project has earned global recognition, receiving the International Business Model Award at the 2013 International Association of Public Transport (UITP) World Congress.
Meanwhile, plans for an R+P model in Tianjin are well underway, after a joint venture with Tianjin Metro (Group) Company Ltd won a 2013 land-use right for a site at Beiyunhe Station atop Tianjin Metro Line 6. “It is anticipated that the development will take about four years to complete and we are currently working on the detailed design and railway interface of the project,” Mr Chan said.
LWK & Partners (HK) Ltd, a Hong Kong-based multinational architectural practice and MTR partner for more than 15 years, is among the key private consultancies engaged on the Shenzhen project. Its ongoing role spans the gamut from early-stage feasibility studies, through master planning, concept, schematic and architectural design, to detail design control in construction stage.
Ivan Fu, Director, LWK & Partners, emphasised the value of the MTR’s R+P model in realising a “new vision” for emerging townships. This is particularly so in the case of Shenzhen’s Longhua, a district transitioning from its industrial past into a quality living environment.
Meanwhile, plans for an R+P model in Tianjin are well underway, after a joint venture with Tianjin Metro (Group) Company Ltd won a 2013 land-use right for a site at Beiyunhe Station atop Tianjin Metro Line 6. “It is anticipated that the development will take about four years to complete and we are currently working on the detailed design and railway interface of the project,” Mr Chan said.
The expertise of LWK & Partners (HK) Ltd, a Hong Kong-based multinational architectural practice and MTR partner for more than 15 years, is among the key private consultancies engaged on the Shenzhen project
LWK & Partners (HK) Ltd, a Hong Kong-based multinational architectural practice and MTR partner for more than 15 years, is among the key private consultancies engaged on the Shenzhen project. Its ongoing role spans the gamut from early-stage feasibility studies, through master planning, concept, schematic and architectural design, to detail design control in construction stage.
Ivan Fu, Director, LWK & Partners, emphasised the value of the MTR’s R+P model in realising a “new vision” for emerging townships. This is particularly so in the case of Shenzhen’s Longhua, a district transitioning from its industrial past into a quality living environment.
Creating Synergy and Harmony
It’s not easy to build a community above a train depot, given the inherent issues around structural integrity, noise and air flow; let alone the sheer volume of transiting passengers. Every minute aspect, down to where each tree would be planted in the rooftop garden, had to be taken into consideration in the master planning.
Apart from working closely with the Corporation, LWK achieved this by gathering design teams specialised in different sectors to create synergy and harmony. “While we ride on the experience of numerous MTR property development projects here in Hong Kong that have been proven mature and successful, we fully leverage our over two decades of solid design expertise in the mainland market to deliver residential design,” Mr Fu said. “Moreover, we work closely with local design institutes to orchestrate multiple tasks at different stages, namely Arup Hong Kong on infrastructure, and Huayang in PRC, on construction schemes and engineering and management design.”
Apart from working closely with the Corporation, LWK achieved this by gathering design teams specialised in different sectors to create synergy and harmony. “While we ride on the experience of numerous MTR property development projects here in Hong Kong that have been proven mature and successful, we fully leverage our over two decades of solid design expertise in the mainland market to deliver residential design,” Mr Fu said. “Moreover, we work closely with local design institutes to orchestrate multiple tasks at different stages, namely Arup Hong Kong on infrastructure, and Huayang in PRC, on construction schemes and engineering and management design.”
Integrated Solutions
Arup, a global consulting firm of engineers, planners, designers and technical specialists, tapped the 2,400 staff operating at its Hong Kong regional headquarters to provide a broad range of services to the MTR’s mainland projects.
“For Tianjin Line 6 Beiyunhe Station Mixed Development, Arup was technical reviewer of the schematic station structure and basement structure; prepared technical appendix to the control document for the topside development; and provided site supervision for piling construction of the station-enabling works,” said Berny Ng, Arup Director and Group Leader, who noted that each task involved dedicated teams from specialised engineering disciplines.
“For Tianjin Line 6 Beiyunhe Station Mixed Development, Arup was technical reviewer of the schematic station structure and basement structure; prepared technical appendix to the control document for the topside development; and provided site supervision for piling construction of the station-enabling works,” said Berny Ng, Arup Director and Group Leader, who noted that each task involved dedicated teams from specialised engineering disciplines.
Topside Construction
Future flexibility of the Shenzhen project required a topside development, which exceeds the limit of the Chinese building code. Arup overcame this through targeted analysis and coordination with local seismic experts, resulting in planning approval.
An integrated traffic design was required to ensure seamless connection between the depot development and the Metro station, as well as maintaining effective connections to urban road network. For this, Arup’s traffic consulting team worked closely with the study team to provide an overall transport strategy, taking into account such details as walking distance and linkages for pedestrians, vehicular access to the podium level, and provision of effective car park arrangement and circulation strategy. Their work included sophisticated traffic queuing modelling analysis to demonstrate that the development would not cause congestion and queuing issues in the future.
An integrated traffic design was required to ensure seamless connection between the depot development and the Metro station, as well as maintaining effective connections to urban road network. For this, Arup’s traffic consulting team worked closely with the study team to provide an overall transport strategy, taking into account such details as walking distance and linkages for pedestrians, vehicular access to the podium level, and provision of effective car park arrangement and circulation strategy. Their work included sophisticated traffic queuing modelling analysis to demonstrate that the development would not cause congestion and queuing issues in the future.
Sustainable Development
The Shenzhen project, Mr Ng said, is an “excellent example” to fully demonstrate Hong Kong’s expertise in such major R+P projects.
The MTR’s Victor Chan agreed that the model ensures sustainable and comprehensive community development in burgeoning mainland cities.
“We do not merely replicate our success in Hong Kong, we make modifications to suit local context and offer tailor-made deals that are attractive to different cities,” Mr Chan said. “With this proven record, the Corporation strongly believes that the integrated rail-and-property model is the way forward for both sustainable metro development, and for a healthy living environment.”
The MTR’s Victor Chan agreed that the model ensures sustainable and comprehensive community development in burgeoning mainland cities.
“We do not merely replicate our success in Hong Kong, we make modifications to suit local context and offer tailor-made deals that are attractive to different cities,” Mr Chan said. “With this proven record, the Corporation strongly believes that the integrated rail-and-property model is the way forward for both sustainable metro development, and for a healthy living environment.”