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Financial Performance

Rail plus Property Model

Our ability to provide a reliable world-class railway service is made possible through our Rail plus Property model. Established 40 years ago for financing our first railway line, the Rail plus Property model continues to be the foundation of our business today. In accordance with this model, we are granted land development rights alongside railway alignments and build integrated communities incorporating residences, offices, shops, schools, kindergartens, green spaces and other public facilities above our stations and depots.

In addition to providing resources for railway operations through recurrent income generated by Rail plus Property assets such as investment properties, the model helps to fill funding gaps when building new railway lines. The system also benefits local residents by providing convenient access to railway services and other facilities.

Transit-Oriented Development

Transit-oriented development (TOD) is an initiative of the Government that has railway at its core. In accordance with this strategy, the framework for public transport in Hong Kong reflects the concept of “rail hubs” supported by secondary modes of road-based transport. One key objective of TOD is to utilise Hong Kong’s limited land resources in a prudent way by promoting intensified development near railway stations. It also aims to facilitate efficient, mass transportation of Hong Kong’s population in an environmentally-friendly way and to make optimal use of restricted development opportunities in Hong Kong’s built-up areas wherever technically feasible.

As a result of the Rail plus Property model, we have supported TOD at stations all over our network. This map illustrates a few examples of our success stories. Please move the cursor over the marked stations to read more.

 

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Click here to access our corporate website for more information about property developments along our railway lines.

 

MTR’s Rail plus Property Success Stories in Hong Kong

Tung Chung - Tung Chung Station is a good example of how TOD works. This station was built along the Tung Chung Line as part of a new town master-plan to create a community of residential housing, retail shops, offices, and a hotel next to the station.

Wong Chuk Hang - The most recent example of the Rail plus Property model development in practice is Wong Chuk Hang Station on the South Island Line (East), which is currently under construction.

West Kowloon - In 1998, Kowloon Station was completed as a key intermediate station of the Airport Express. It is located on reclaimed land in West Kowloon and is seamlessly integrated with the nearby 118-storey International Commerce Centre as well as a residential and retail complex above the station.

Telford Gardens - One of the earliest examples of how TOD has succeeded is Kowloon Bay Station and Depot on the Kwun Tong Line. Completed in the early 1980s, it comprises residential towers with a regional shopping mall and several open spaces well connected to the station.

LOHAS Park - In keeping with our 21st century urban development model, LOHAS Park is being developed as a comprehensively-planned, integrated community. The station itself, which opened in 2009, serves as the principal transport hub for the area, connecting approximately 60,000 residents via a network of elevated covered walkways. At the end of 2014, 18 out of 50 planned towers were completed as part of the development complex that also includes a 19,000 square metre central park and 330 square metres of seafront promenade.

Looking Beyond Hong Kong

We believe that the Rail plus Property model can be applied successfully in other cities around the world or adapted to suit specific conditions of different markets. In the Mainland of China, for example, we are involved in two rail-related property developments involving the Longhua Line Depot in Shenzhen and another development site in Tianjin. These projects are consistent with plans from the State Council to reform financing of the country’s railways.