Central Market Revitalisation Briefing · Central Market Revitalisation Briefing 18th September 2019 Important notice This presentation does not signify the commencement of a tender

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.

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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.

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

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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

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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

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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

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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.

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Layout design of Central MarketNoteAll plans, figures and illustrations are subject tochange and final approval by relevant authorities/government departments.

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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:


G/F area:


Public

Space incl.

circulation

space

Retail

Leasable

Area

40%

80%

40%

60%

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F&BNoteAll plans, figures and illustrations aresubject to change and final approval byrelevant authorities/ governmentdepartments.

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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.

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Layout design of Central Market1st floor

Leasable Area


Public Space

Public Open Space


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Layout design of Central Market2nd floor

Leasable Area


Public Space


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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.

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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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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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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

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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

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Key Performance Indicators

24hr Public access

Facilities management

Market Vibrancy

Timely performance

reporting

Safety and Security

Customer Satisfaction

Energy efficiency

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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

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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

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Ongoing activities

Central Market branding exercise

Individual site visits

On-going market engagement (2nd

briefing if necessary)

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Central Market branding exercise

Brand DNA Signage design

Logo and Visual Identity Graphic design

Positioning of Central Market Overall way-finding strategy

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Individual site visits

On-going market engagement

[email protected]

(+852) 2847 5003

Contact information

mailto:[email protected]

Documents

Central Market Revitalisation Briefing · Central Market Revitalisation Briefing 18th September 2019 Important notice This presentation does not signify the commencement of a tender