Land value capture strategies in PPP – what can FM learn from it?

Abstract

PurposeValue capture seeks to generate revenue by extracting a portion of the gains in the value of land and property that result from improvements to transportation networks. The paper aims to present the opportunities for facilities management (FM) on the level of participating more actively in the development of new area to help building a competitive and healthy area with high quality for residence, business and spare time. A framework also includes life period land valuation in the land value capture (LVC) for the assessment and revenue models for public private partnership (PPP) type of investments in the way to identify additional private profit so as to attract landlords to join the project.Design/methodology/approachLand valuation for expropriation is a useful method, which can be evaluated through the life period of the infrastructure. The value capture strategies are identified and respective policies are evaluated. Periodically, market value assessment of land within the value capture model is designed, by which the private partners could be attracted.FindingsIn the paper, LVC shows how the relation to increase value of land can bring competitive areas and as such give new opportunity for FM.Originality/valueCapturing land value and widening the internalisation of external positive impacts enhances the perspective of project assessment and PPP financing models. This model may be used by public and private sector parties involved in PPP arrangements to improve project evaluation and the base of project finance.