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Central Market RevitalisationBriefing
18th September 2019
Important notice
This presentation does not signify the commencement of a tender process and is not a prequalification exercise for the subsequent tender invitation for the Project. Neither this presentation nor any submission received by URA in response to it constitutes an offer or the basis of any contract which may be concluded in relation to the future operation of the Central Market.Whilst the information in this presentation has been prepared in good faith, it does not claim to be comprehensive or to have been independently verified and are subject to change.All third parties should make their own independent assessment of the information contained in this presentation to develop a view on the risks and benefits of the project.
2
Document Classification: KPMG Public
© 2019 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Hong Kong.
Purpose of the briefing
Invite your views and feedback
Overview of URA’s vision for the Central Market
Overview of the facility and the related opportunity
Overview of the procurement process and contractual arrangement
Enable interested parties to meet
3
Document Classification: KPMG Public
© 2019 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Hong Kong.
Briefing
18th Sep 2019
2nd
Briefing
(if required)
Early Nov 2019
Phase 1 Opening
Mar 2021
Full Operation
Q1 2022
Release of
Pre-qualification
Mid-Nov 2019
Closing date for Pre-
qualification
Early Jan 2020
Pre-Qualification
Period
6 weeks
Release of Tender
End of Jan 2020
Award of Contract
Aug 2020
Tender Period
4 months
Tender Evaluation
2 months
Fit-out & Lease-
free Period
6 months
Phase 1 Operation
Est. 12 months
Project timeline
4
Document Classification: KPMG Public
© 2019 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Hong Kong.
The Central Market opportunity
11,000sq.m of retail, F&B, cultural and
event space in the heart of Hong
Kong
A unique attraction in a Grade III
Historical Building
Synergy with nearby revitalised
heritage attractions in the Central
district.
Massive foot flow and great
connectivity
Lease payment to allow URA’s objectives
to be met and a commercially viable
operating proposition to be realised
FM costs for public space and
facilities to be paid by the URA
(approx. 35% of overall FM costs)
Significant potential patronage
through location and interconnectivity
What is the Central Market? What is the commercial opportunity?
10 year operation contract for the
Central Market
5
Document Classification: KPMG Public
© 2019 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Hong Kong.
URA’s vision for the CM
Revitalise the 80-year-old Central Market
Rebrand the “Central Market” as a place of destination
Create vibrancy and diversity
Manage and activate the public space and 24-hr
pedestrian passageway & public toilet
Provide affordable and inviting F&B, retail and
cultural venue for the general public
Create synergy among URA’s projects in the vicinity,
including H6 CONET and H18
6
Document Classification: KPMG Public
© 2019 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Hong Kong.
Location and nearby venues
450ppl Multi-purpose
Hall
Pak Tsz Lane ParkH18 Site A, B & C
(2060m2
POS)
Central Market
中環街市
The Center
Internal Circulation
Pedestrian walkway
Public Open Space
Major roads
Total area: 11,340m2
Leasable area: 5,657m2
Public Open Space: 1,000m2
Circulation space: 3,392m2
MEP and toilets: 1,291m2
IFC
&
MTR
NoteAll plans, figures and illustrations are subject tochange and final approval by relevant authorities/government departments.
7
Document Classification: KPMG Public
© 2019 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Hong Kong.
Layout design of Central MarketNoteAll plans, figures and illustrations are subject tochange and final approval by relevant authorities/government departments.
8
Document Classification: KPMG Public
© 2019 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Hong Kong.
24 hours Passageway
Main Access
Public Open Space
G/F
1/F
2/F
Layout design of Central MarketCentral Market
中環街市Total area: 11,340m
2
2/F area:
Total area: 3,451 m2
1/F area:
Total area: 3,730 m2
G/F area:
Total area: 4,159 m2
Public
Space incl.
circulation
space
Retail
Leasable
Area
40%
80%
40%
60%
20
F&BNoteAll plans, figures and illustrations aresubject to change and final approval byrelevant authorities/ governmentdepartments.
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Document Classification: KPMG Public
© 2019 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Hong Kong.
GROUND FLOOR PLAN
Layout design of Central MarketGround floor
Leasable Area
Main Circulation and
Public Space
Public Open Space
NoteAll plans, figures and illustrationsare subject to change and finalapproval by relevant authorities/government departments.
10
Document Classification: KPMG Public
© 2019 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Hong Kong.
Layout design of Central Market1st floor
Leasable Area
Main Circulation and
Public Space
Public Open Space
NoteAll plans, figures and illustrationsare subject to change and finalapproval by relevant authorities/government departments.
11
Document Classification: KPMG Public
© 2019 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Hong Kong.
Layout design of Central Market2nd floor
Leasable Area
Main Circulation and
Public Space
NoteAll plans, figures and illustrationsare subject to change and finalapproval by relevant authorities/government departments.
12
Document Classification: KPMG Public
© 2019 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Hong Kong.
FIRST FLOOR PLAN
GROUND FLOOR PLAN
SECOND FLOOR PLAN
PHASE 1
(OP by Q3 2020)
Area Retained
for Main
Contractor
During Phase 2
Construction
PHASE 2
(OP by Q3 2021)Phasing plans
NoteAll plans, figures and illustrations are subjectto change and final approval by relevantauthorities/ government departments.
13
Document Classification: KPMG Public
© 2019 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Hong Kong.
Contractual structure
Collaborative
governance
Mechanisms
Steering
meetings
Issues resolution
meetings
Approval
process
Discussion
forum
Business PlanKPIsPerformance
Reports
Collaborative governance framework
Operating
Contract /
Lease
Central Market Branding
Contribute to FM cost
Destination Creating
Customer ServicesStakeholder Management
Facilities Management
Risk Management
Tenant sourcing management
and retentionExamples of
Operating
responsibilities
Market vibrancy
Experience
Innovation
Community focus
Operator
(Single entity or
Consortium)
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Document Classification: KPMG Public
© 2019 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Hong Kong.
Key commercial opportunity
10 year operating contract
URA’s payment of FM of
relation to public space &
facilities
Lease free period (between
contract award and opening
date)
11,000 sq.m of prime location
real estate to operate on a
commercial basis
Lease payment to allow URA’s
objectives to be met and a commercially
viable operating proposition to be
realised
Partner with the Operator in setting of
the operating intent and ongoing
management
Operator
Commercial
opportunity
Operating
Contract
Mix of F&B, Retail, Public Open Space
and 24hr pedestrian walkway providing
continue access
Commercial freedom
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Document Classification: KPMG Public
© 2019 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Hong Kong.
Other URA costs
Commercial structure
Operator
(Single entity or Consortium)
Market
Rental
Value
adjusted
for URA
objectives
Lease payable to URA for the
right to operate CM
Public space & facilities FM
payment to the Operator
URA’s social and community
commitment to the CM
Payment
Theoretical
market
Rental Value
Lease Payment
URA activities
URA
Objectives
i.e.
Affordability
Operator potential upside
16
Document Classification: KPMG Public
© 2019 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Hong Kong.
Operating Requirements
Diverse / appropriate
Tenant Mix
Preservation of
historical elements
Maximise public usage
Creative and
innovative operation
Above market
standard facilities
management
Key Requirements
Environmentally
sustainable operation
Ensure high customers
satisfaction
Establish Central Market
as a popular destination
URA’s vision
Revitalise the 80-year-old Central Market
Rebrand the “Central Market” as a place of
destination
Create vibrancy and diversity
Provide affordable and inviting F&B, retail
and cultural venue for the general public
Manage and activate the public space and 24-
hr pedestrian passageway & public toilet
Create synergy among URA’s projects in the vicinity,
including H6 CONET and H18
17
Document Classification: KPMG Public
© 2019 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Hong Kong.
Key Performance Indicators
24hr Public access
Facilities management
Market Vibrancy
Timely performance
reporting
Safety and Security
Customer Satisfaction
Energy efficiency
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Document Classification: KPMG Public
© 2019 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Hong Kong.
Tendering process – pre-qualification
Relevant
experience
thresholds
Financial capacity
Interested
PartiesPre-qualification Tender
Interested parties who fulfilled
the pre-qualification stage will
be invited to the tender stage
Y/N
Y/N
19
Document Classification: KPMG Public
© 2019 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Hong Kong.
20%
Technical80%
Technical submission evaluation
(examples of response areas):
Vision;
Organisational structure & personnel;
Destination Creation Plan;
Tenant Management Plan;
Marketing Plan;
Asset Management Plan; and
Customer Service Plan, etc.
Financial submission evaluation
a) Bid Back Public Space and Facilities FM
payment requirement; and
b) Bid lease payment to URA
Tendering process – tender
20
Document Classification: KPMG Public
© 2019 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Hong Kong.
Ongoing activities
Central Market branding exercise
Individual site visits
On-going market engagement (2nd
briefing if necessary)
21
Document Classification: KPMG Public
© 2019 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Hong Kong.
Central Market branding exercise
Brand DNA Signage design
Logo and Visual Identity Graphic design
Positioning of Central Market Overall way-finding strategy
22
Document Classification: KPMG Public
© 2019 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Hong Kong.
Individual site visits
On-going market engagement
(+852) 2847 5003
Contact information