Unlocking Value Through Transport Investment

Yet again transport investment and real estate value forms a key discussion topic at this year's MIPIM with representation from all of the major transport investment projects. The projects aren't new, so what has changed since last year?

Philip Hammond's budget on last week brought back into sharp focus in London the drive to capture the increases in land value which result from transport investment at a local level devolving new powers to the GLA and London Boroughs. Most encouraging was the creation of a joint taskforce to explore options for piloting a Development Rights Auction Model (DRAM) on a major infrastructure project in London. In essence this model aims to capture additional value through pooling land interests around major new transport facilities and auctioning development rights to a competitive field. Gains above a reserve price are then shared between landowners and the planning/auctioning authority.