Turin, Variante 200

Urban planning strategy, investment

framework and goals

Summary

• Overview

• Metro line 2

• Governance and delivery strategy

• Real estate market and project opportunities

• Financial strategy

• Way forward

Dogma, 2010

Location

Overview

The scheme: facts and figures• Location: 

– 15 min. from Turin city centre

– 50 min. to Milan city centre by train, less than 2h by motorway

– future direct connection to airport (20 min.)

• New metro line: – will connect to city center in (11 min.)

• Size: – 130 ha

– 870,000 sq.m GDA (30% existing buildings, 70% new buildings)

• Public sector funding in the area:– In place : 8 km central “backbone” (urban boulevard partially on top of over 

15 km underground railway tracks) – 1,5 bl euros

– In place: Urban regeneration programme – 25ml

– Social housing projects – on going

– Airport train connection – 160 ml euro

– Metropolitan railways system

Overview

The site

Overview

Variante 200 ‐ development data ‐ totalArea 125 ha

Type of urban project Brownfield redevelopment

Integrated transportinfrastructure

7,2 km metro line12 stations

Timing 2011‐2021

Target figures 16.000 inhabitants (90% new)13.000 jobs

Programme TOTAL: 870.000 sq.m:• 475.000 sq.m residential (approx. 6.000 units)

(out of which approx. 10% social housing)• 395.000 sq.m office and retail (retail centre of 35.000 sqmunderway)

• Approx. 4.000 public parking units• Approx. 300.000 mq park/green area (inc. approx. 4 km botanicalpromenade)• school, hospital facility• future sport university

The scheme

Flexible mix of usesThe scheme

GDA 311.000 sqm

GDA 562.000 sqm

Land ownership ‐current

*Taking into account undergoing and foreseen acquisitions of approx. 100.000 sq.m areas (from public and private owners)

Land ownership ‐mainly byDecember 2010*

Development data – Municipal land only 

Land  GDA ResidentialCommercial/ 

retailmq mq mq mq

Spina 4 292.813 204.408 122.645 81.763Scalo Vanchiglia/Trincerone 375.900 251.869 171.462 80.407

TOTAL 668.713 456.277 294.107 162.170

Area 67 ha

Target figures 9.800 new inhabitants5.400 new jobs

Programme TOTAL: 456.000 sq.m*• 294.000 sq.m residential (approx. 3.900 units)• 162.000 sq.m office and retail

*from now on rounded to 455.000 sq.m

The scheme

Approach ‐ delivery

• “Società di Trasformazione Urbana”, i.e. UrbanDevelopment Company created as the project SPV – public sector‐driven– entrepreneurial and profit‐driven approach– urban and economic development one‐stop shop (efficiency)– potential for public‐private partnership– can call best advisors, masterplanners, architects– less vulnerable to political vagaries and changes of local

government• Local authority role:

– Ad hoc technical body to assist with public sector works and planning applications

– Build and sustain a strong local economic and social partnership (main stakeholders and community)

The scheme

SPV boundaries 130 ha

The scheme

• Automatic system

• Total: 14,8 km, 24 stations

• Extension toOrbassano: 6 km

• Catchment area: 19 sqkm, 156.000 pop.

• Users: 15 ml‐48 ml

• Fee: 0,39€ gross

• Staff: 125

Metro line 2

Metro line 2

2

1

0.0

10.0

20.0

30.0

40.0

50.0

60.0

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

2039

2040

Domanda base Completamento linea 2 Effetto politiche mobilità TOD

Metro line 2 – first section

Metro line 2

• Rebaudengo‐corsoVittorio: 7,2 km, 12 stations

• Construction costs: 650 ml

• Time: 2+5 years

• Traditional tender, Project finance or leasing

Urban Development Company

• “Società di Trasformazione Urbana”• Mission: 

– to realise the full potential of the urban, social and economicdevelopment of the area

• Initially 100% Municipality owned• In charge of: 

– Land and property management and development– Receiving part of the compulsory and additional development duties– Masterplan and design guidelines– Realising with own money all the strategic urban infrastructure– Co‐financing the metro line– Promoting local economic development and change (from industrial to

office headquarters)– Promoting social cohesion, community development and involvement– Shareholder of part of the real estate funds and advisor role

Governance and delivery strategy

Urban development and metro linereciprocal value creation

Governance and delivery strategy

Overall governanceGovernance and delivery strategy

Infra.ToSocietà di TrasformazioneUrbana (UDC)

Comune di Torino

Tri‐lateral Agreement

‐ Delivery of urban development plan

‐ Real assets value maximisation

‐ Design of the metro line and tendering process

Sites and development rights

Finance towards metro line costs

State (CIPE) Piemonte Region

Finance 

80 ml

60% 390 ml 20% 130 ml

650 ml

190 ml 50 ml

Total 20% 130 ml

Local real estate market

• Medium values and quality

• Some social issues 

• Currently, not many strong selling points (except accessibility)

• BUT.. One of the most dynamic areas in town in terms of real estate product innovation and social change

• The market is showing a great interest

Real estate market and project opportunities

Attractive developments in the area

Ex Ceat Residential 3.500 €/sq.m

Basic Village Office space 200 €/sq.m/year

Lavazza 

Via Aosta 8 Residential 3.200 €/mq

Former flower market La Fabbrica – via Bologna 220 

Real estate market and project opportunities

Spina 4 – Masterplan concept

Scalo Vanchiglia – Masterplan concept

So far, a very positive reaction from the market

• Two sizeable sites have already: – sorted out land assembly

– already presented development plans to the town (to be approved byDecember)

– full financing in place

Regaldi Plan, in Scalo Vanchiglia

• 85.000 sq.m (inc. 20.000 sq.m retailcentre sold at 3.000 €/sq.m)

Gondrand Plan, in Spina 4• 35.500 sq.m• 70% residential, 30% office/shops)

Clusters

UDC 165.000 sq.m

Real estate funds 200.000 sq.m

Metro developer 90.000 sq.m

UseUDC Funds Metrosq.m sq.m sq.m

Residential 111.000 128.000 57.000Commercial/ retail 54.000 72.000 33.000

TOTAL 165.000 200.000 90.000

Preliminary investment information

Cluster GLA(sqm)

Land cost

(€mn)

Othercosts(€mn)

GDV(€mn)

IRR Unl(pre-tax)

%

Profit/ All in Costs

%Cluster 1 -UDC

165,000 86 269 462 21.5% 27.8%

Cluster 2 -Funds

200,000 na na 101 na na

Cluster 3 -Metro SPV

90,000 na na 47.1 na na

Sale prices €/sqm

Residential 2,800

Commercial 2,500

Retail 2,300

All costs* €/sqm

Residential 1,630

Commercial 1,467

Retail 1,419

* Construction costs, urbanization costs, service costs, financial expense