#1A Private Company's TOD in Japan ~Urban Development Along TOKYU Lines~ KANTARO YAMAGUCHI Manager, Urban Management Strategy Headquarters, Tokyu Corporation RAIL CONFERENCE JITI APTA#2Today's Presentation Contents 1. What is The Tokyu Corporation? 2. Why is a private company able to do sustainable TOD? 3. Urban Development along TOKYU Lines RAIL CONFERENCE JITI APTA#31. What is The Tokyu Corporation? 3#4What is The Tokyu Corporation? Corporate Origin • ⚫ "Garden City Theory" by E. Howard • Letchworth was typical town in the suburban area of London where the theory was reproduced • Founded in 1918, Denen-Toshi Company *, aimed to reproduce the "Garden City Concept" which was influenced by the Theory. This aim is the bacis for our organizational identity today. * Developed typical rich Japanese neighborhoods such as Denen-Chofu, Senzoku, etc. Land value increase User increase 4#5What is The Tokyu Corporation? Tokyu "Ensen”···Areas along Tokyu Lines Tokyu line Minato-miralline Subway line of operation of direct connection Subway line with planned operation of direct connection JR Yamanote line Shinkansen line Other JRine, private railway line Shinjuku 20km 10km Shimo-Takaido Shibuya Sangenjaya Naka-Meguro Meguro Gotanda Futako-Tamagawa JiyugaoOokayama Mizonokuchi Tama Plaza 30km Denen-Chofu Tatanodadai Tamagawa Musashi-Kosugi Oimachi Kodomo-no-Kuni Hiyoshi Aobadai Kawasaki Nagatsuda Kikuna Minami-Machida Chuo Rinkan 40km Yokohama Tokyo Kamat Haneda Airport achi-Chukagai Areas along Tokyu lines (defined as 17 cities and wards where Tokyu lines run) ■ Area: 490Km " (approx. 1/3 of London) (approx. eightfold of Manhattan) Population: 5.06 million (as of 2011) (approx. 2/3 of London) Population density: 10.324 persons/Km Number of households: 2.49 million (as of March 31, 2011) Taxable income per person: 1.5 times as much as national average ⚫ Consumer spending: 8.0591 trillion JPY Service coverage area of CATV network Number of households: 1.271 million Tokyu Tama Denen-toshi ■ Area: 50km (as of March 31, 2012) Population: 600,000 people Japan Tokyo Metropolitan Area 5#6What is The Tokyu Corporation? Basic Strategy for Improving Corporate Value Transportation Business creating a stable cash flow Real Estate Business as a driver of profit growth Life Service Business enhancing the value of rail service areas in coordination with each business Overseas business expansion Seizing new growth opportunities 6#7What is The Tokyu Corporation? REVENUE/PROFIT STRUCTURE (FY2017) Lifestyle Services Business/Other ¥744.6 billion 65% Transport Business ¥211.5 billion 19% Real Estate Business ¥182.5 billion 16% Lifestyle Services Business/Other ¥21.6 billion 26% Real Estate Business ¥32.3 billion Transport Business ¥29.0 billion 35% 39% Operating Revenue (Consolidated) ¥1,138.6 billion Operating Profit (Consolidated) ¥82.9 billion 7#82. Why is a private company able to do sustainable TOD? 8 00#9Why is a private company able to do sustainable TOD? Why can a private company can do sustainable TOD? 乗降客数ランキング/station passenger number ranking ranking R/station 1|新宿/Shinjuku /Shibuya 2 3 池袋/Ikebukuro 4/Osaka 5/Yokohama 6 北千住/Kitasenju 7/Tokyo 8 名古屋/Nagoya 9/5/Howrah 10 J/Shinagawa /area nation 日本・東京圏 / Tokyo Japan 日本・東京圏/Tokyo Japan *./Tokyo Japan 日本関西圏/kansai Japan ./Tokyo Japan 日本・東京圏/Tokyo Japan 日本・東京圏 / Tokyo Japan *•*/chukyo Japan) インド・コルカタ / Kolkata India 日本・東京圏/Tokyo Japan フランス・パリ/Paris France *•/Tokyo Japan 1B/per day 3,509,753 3,101,316 2,536,921 2,299,235 2,160,389 1,488,504 1,151,706 1,148,744 1,000,000 975,277 920,191 882,771 880,772 855,873 706,131 700,475 665,820 インド・ターネー/Thane India 654,000 ./Tokyo Japan 653,691 20 京都/Kyoto *./kansai Japan 653,043 11/Gare du Nord 12/Takadanobaba 13 難波/Namba 14 新橋/Shimbashi 15 /Akihabara 16 Tennoji 17 E//Sannomiya 18/Thane 19|XẺ/Omiya 8.428/kansai Japan 日本・東京圏/Tokyo Japan *•/Tokyo Japan 日本関西圏/kansai Japan B./kansai Japan 6#10Why is a private company able to do sustainable TOD? Urban Development Strategy Strategic Objective To foster areas along the Tokyu Lines so that become sustainable, and diversified citizens would like to "live in," "continue to live in," "visit," and "run businesses in" Urban Development Strategy To promote individual development projects from an integrated viewpoint of improving the town's value by constructing visions/concepts, etc. of the town and drafting values/services to be provided to current/future residents and visitors Promote development + Reinforce the portfolio + projects steadily by asset restructuring Whole Town Create new value in the town Increase consumption in the whole town Attract investment from outside Implement measures to improve asset efficiency/asset values + Comprehensively manage assets owned/ assets under management Our Company In addition to real estate leasing, we also earn profit in other means such as retail/railway/hotels Increased values of assets owned Enhancing business base Earning complex profits Business development/investment → Improvement in town's value → Business expansion/reinvestment 10 10#113. Urban Development along TOKYU Lines 11#12Urban Development along TOKYU Lines Past Development Track Record (Leasing Business) Aobadai Tokyu Square November, 2000 Tama Plaza Terrace October, 2010 Chuo-rinkan Aobadai April, 2012 Tokyu Saginuma Setagaya Business Square Shibuya Hikarie Cerulean Tower Building September, 1978 September, 1993 Mizonokuchi Shibuya Mark City* February, 2000 SHIBUYA CAST.* April, 2017 March, 2001 Sangen-jaya Tokyo Minami-machida Tama-plaza Saginuma Yoga Shibuya Futako-tamagawa Jiyugaoka Tamagawa Futako Tamagawa Rise Futako Tamagawa Rise Phase I * November, 2010 Phase II* June, 2015 Nagatacho Meguro Carrot Tower* November, 1996 Tokyu Bancho Building* September, 2011 Queen's Square Yokohama* June, 1997 Musashi-kosugi Yokohama Hiyoshi Minatomirai Motomachi -Chukagai Musashi Kosugi Tokyu Square* April, 2013 Kamata Oimachi Haneda Airport JR Tokyu Meguro Building Tokyu Capitol Tower July, 2010 March, 2002 *Property sectionally owned or co-owned with other company 12#13RAUSO/GY=1#14Urban Development along TOKYU Lines FUAKO TAMAGAWA RISE (BENEFITS OF OPENING) Functions added by redevelopment Benefits for the town ■Pop'n increase (Within 1 km radius of Futako-Tamagawa Stn.) Approx. 4.5% increase Expansion of our business Approx. 41.0B Futako Tamagawa Rise Shopping Center Tenant Revenue (x 100M Yen) 450 400 350 300 (1.5x Setagaya Ward's average increase (3%)) Apr. 2014 42,663 (of which, 0-14 9% increase years: 5,866) (1.7x Setagaya Ward's increase) Apr. 2017 44,570 (of which, 0-14 years: 6,402) 250 FY2011 FY2012 180 Rise in land values ■Daily average passengers boarding/alighting at (x 1,000) 163,000 Futako-Tamagawa Stn. FY2013 FY2014 FY2015 FY2016FY2017 160 (Value of 1 m² commercial land 200 m from Futako-Tamagawa Stn.) Approx. 12.8% increase If value in Jan. 2014 is 100 Jan. 2018 128.2 Approx. 60,000 (58.2%) increase 140 120 103,000 100 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Ripple effect on population and land value increases in surrounding areas as well as development area 14#15F21 OREVER 2017 Coca-Cola 2017 2017 2017#16Urban Development along TOKYU Lines Shibuya: YR2012 Hachiko Square Scranble clossing 16#17Urban Development along TOKYU Lines Shibuya: YR2027 Shibuya Station South Distr Shibu istrict 17 17#18Tokyo June 30 2012 @ Shibuya Hikarie www.tedxtokyo.com TEDXToky CAT SUIBUYA 100#19THANK YOU