Implementing TOD Challenges and opportunities for Railway Stations Redevelopment WRI Workshop

Transcription

1 Implementing TOD Challenges and opportunities for Railway Stations Redevelopment WRI Workshop Thursday, February 18,

2 PM SHRI NARENDRA MODI ON RAILWAY STATIONS 2

3 A WORLD CLASS STATION will provide state of the art facilities to the passengers by leveraging the real estate potential of the land and air space in and around the station. will incorporate architecture that shall reflect the culture and the character of the city. will integrate development for a comfortable and efficient passenger experience. will be self financing and would also generate revenue for railway. 3

4 MAIN FEATURES Iconic Structure Integrating both sides of the city Segregation: Arrival/ Departure Enhancing passengers delight To act as a multi modal transit hub Disabled friendly Planning for next 40 years Energy efficient 4

5 STAKEHOLDERS IN STATION DEVELOPMENT Indian Railway Local communities Investors / Developers Tourism Dept Station Development Contiguous Landowners State Govt City Corporations 5

6 BENEFITS TO STAKEHOLDERS Opportunity to create an iconic structure High brand visibility with benefits for your other business Enhanced credibility and goodwill Create a gateway as part of a holistic tourist experience Rise in property value around stations Station redevelopment projects are TOD projects in which the central station complex becomes more multifunctional, and the linkage system is more thematic to satisfy a diversity of needs. Station areas as places for exchange of ideas and promotion of lifestyle, within a physical framework that incorporates innovations in building and space technology. The railway stations are in effect becoming nerve centres for the so-called Smart city, in which the transportation function plays a supportive role and no longer a central role. 6

7 SWOT ANALYSIS Strengths Weaknesses Ownership of land Model under implementation Strategically placed Real Estate component Complex formalities Studied well for implementation Threats Competition from upcoming/planned projects in the cities Volatility in real estate valuations. Opportunities Huge potential, growing system FDI 100% 7

8 KEY CHALLENGES Located in congested areas in city centres. Commercial development around these stations may add to the congestion and the capacity of approach road infrastructure may be a constraint. Extensive discussions with local authorities/bodies: permissible FAR, multi-modal integration, approach infrastructure. Station specific issues i.e. Heritage clearances etc. Most stations are brown field ones where redevelopment works have to be executed under running train conditions. Different financial models required for viability. Financial viability depends on real estate market which is cyclical in nature. 8

9 GLOBAL EXAMPLES The station s conversion is part of an urban renewal project centring on the area north of the station. The locus of this project is the renovation of the central station, which now forms the focal point of this area. The new urban complex will comprise an international congress centre, hotels, housing, offices, public space, etc. Seoul, South Korea 9

10 GLOBAL EXAMPLES View of Tokyo Station in 2000, before redevelopment Tokyo Station renovation - Marunouchi side, Nov 2009 Tokyo, Japan 10

11 GLOBAL EXAMPLES Tokyo Station Yaesu Side, with the new Grand Tokyo South Tower completed in 2007 The front of Tokyo Station lit up at night, taken from the Marunouchi Oazo side Tokyo, Japan 11

12 GLOBAL EXAMPLES In St. Pancras, 9,000 square meters (97,000 square feet) of retail space are directly connected to passenger flows. The land between and behind the two stations (St. Pancras & Kings Cross) has been redeveloped with nearly 2,000 new homes, 5.3 million sqft of office space and new roads as King's Cross Central. The St. Pancras Renaissance London Hotel was opened in St. Pancras Station, London, UK 12

13 GLOBAL EXAMPLES Office 3.4 million sq ft Retail 500,000 sq ft Hotel 91 rooms 30,000 sq ft Residential 2,000 units Parking 865 spaces Open space 26 acres Total gross building area planned 6 million sq ft Total site area 67 acres (27 ha) Kings Cross Station London, UK 13

14 GLOBAL EXAMPLES The station redevelopment has been the catalyst for one of the largest regeneration schemes in Europe, attracting 2.2bn of private investment. 67 acres of brown-field land is being developed into offices (3.4 million sq ft), Retail (500,000 sq ft) and 2,000 homes. The project was completed with the revealing of the original station facade and the opening of the 75,000 sq ft King's Cross Square in front of the station. Kings Cross Station London, UK 14

15 GLOBAL EXAMPLES Kuala Lumpur Sentral (KL Sentral) is a transit-oriented development that houses the main railway station of Kuala Lumpur. KL Sentral replaced the old Kuala Lumpur railway station as the city's main intercity railway station. KL Sentral refers to the entire 290,000 square metres of development built on the former KTM marshalling yard. The development includes the transport hub, hotels, office towers, condominiums and shopping malls. Kuala Lumpur Sentral, Malaysia 15

16 8 stations by IRSDC. OUR STRATEGY Project development by IRSDC prior to bidding. 400 (A1 & A category) stations on Swiss Challenge method. Bidding on as is where is basis. 16

17 IRSDC PROJECTS: METHODOLOGY Invitation of proposal for ATC Finalisation of RFQ Invitation of RTP Appointment of Arch & Tech consultant Invitation of RFQ Finalisation of RTP incl. Normalization Appointment of Financial & Bid advisory consultant Approval of Master plan by Local bodies Preparation of Master Plan & Feasibility report Approval of Master plan by Zonal Railway Invitation of RFP ( Financial Bid) Finalisation of RFP Issue of LOA 17

18 IMPLEMENTATION STRATEGY Developer Develop in 8 yrs max Lease 45 yrs Real Estate Premium Development in 3 yrs O&M for 5 years Railway Station Lease, Development Rights and Right of Way Transfer IRSDC IRSDC/ Railway The developer will fund the development of station and operation & maintenance for 5 years, using the revenues from real estate. Developer will transfer station assets to railways and operate the station for 5 years through a O&M contract. Before completion of station development, developer will not be permitted to earn revenues from real estate. 18

19 STATUS OF STATIONS ENTRUSTED TO IRSDC Station Habibganj Anand Vihar Bijwasan Chandigarh Current Status RFQ and RTP finalised RFP (Financial Bid) invited on Award of Development contract by In-principle approval of Master Plan received from Unified Traffic and Transportation Infrastructure. (Planning & Engineering) Centre (UTTIPEC); RFQ invited, to be opened on In-principle approval of Master Plan received from UTTIPEC Increase in height of building from m to m obtained from Airport Authority of India. RFQ invited, to be opened on In principle approval of Master Plan received from UT Administration, Chandigarh. Revision of drawings in process. RFQ invitation Planned in February

20 STATUS OF STATIONS ENTRUSTED TO IRSDC Station Shivajinagar Surat Gandhinagar (RLDA) Current Status Application for approval of Master Plan by local authorities submitted. Heritage clearance obtained. Master plan approval being pursued at Chief Secretary, Govt. of Maharashtra level. An Integrated Multi-Modal Hub to be developed duly encompassing Rly s master plan. SMC and Gujarat State Road Transport Corporation (GSRTC) have appointed their Consultants and their plans are yet to be finalized. Last meeting held at Surat on to finalise multimodal plan. Feasibility Report and Master Plan prepared. Plan finalised broadly. Financial modelling being done. MOU with state govt being drafted. 20

21 400 STATIONS REDEVELOPMENT - PRESENT STATUS 400 stations on as is where is basis. General Guidelines issued to Zonal Railways and Standing Groups constituted to facilitate interaction with prospective bidders. ( List of stations proposed, general data and indicative list of facilities uploaded on Zonal railways website. Rail Land Development Authority (RLDA) has appointed a consultant for preparation of Model tender document, which is being finalised after stakeholders consultations in January IRSDC entrusted to appoint a consultant for providing Strategic / transaction Advisory Services for this project; Bids under finalisation. 21

22 SWISS CHALLENGE METHODOLOGY Seeking initial proposal Normalization & Inviting open bids Submission of proposals Submission of Proposal Submission of detailed proposal Bid evaluation Examination by STC Approval from GM Time for matching highest bid Examination by SFC Examination by ICEE Award 22

23 FINANCING MODEL Self-Financing Mechanism: capital and operating cost of the project is financed through the project revenues and station facility revenues. Project Revenues: revenue from commercial development on vacant land & air rights. 23

24 REAL ESTATE DEVELOPMENT Vacant land and air rights Model Development Agreement ( SPV to be formed for Station Development Maximum lease period in years years within which station development is to be accomplished years within which commercial development is envisaged 24

25 REAL ESTATE DEVELOPMENT Land cannot be mortgaged: ownership always with Railways Commissioning of Commercial Development: after commissioning of station development Advance Marketing: permitted through Escrow mechanism No residential development permitted 25

26 Welcome to partner in world s largest TOD and PPP programme For more information at info@irsdc.com

27 Habibganj (Bhopal) 27

28 Anand vihar 28

29 Bijwasan 29

30 Chandigarh 30

31 Shivaji Nagar (Pune) 31

32 Surat 32

33 Gandhinagar 33