Public Wealth of Cities

Unleashing the hidden wealth for the benefit of the entire society

REINVENTING THE CITY - requires the best infrastructureInnovation success depends on the demand for physical connection - best produced by people in close proximity to other people.

Singapore – public wealth for the peopleThis former garrison town was abandoned by the British and expelled by Malaysia in the 1960s, left with mass unemployment and a housing crisis. Depending on the outside world not just for food and energy, but even water - Innovative economic policy combined with professional management of public commercial wealth provided employment and prosperity, as well as public housing to more than 80 per cent of the population.

GOLD MOUNTAIN – guarded by vested interestsEvery city is standing on a ‘gold mountain’ of public commercial assets. Guarded by vested interests from best use to the benefit of the society as a whole.

Royal Palace or Ministry of Finance?

Originally built as a palace for a king. After the French Revolution used as government ministry until in 1983, when President Mitterrand realised that the opportunity cost was too high. The administration was moved to La Defénse, outside of Paris and the Louvre could focus on being one of the leading museums in the world and the home of the Mona Lisa

PERCEPTION – Mona Lisa

A canvas full of oil, or a national treasure?

Hospital or historical relic?

Originally built as St George Hospital in 1733, at the corner of Hyde Park in London it served the people of London for centuries. Eventually abandoned for more modern facilities the house stood empty for years, until transformed into one of the most expensive hotels in London – The Lanesborough

OPPORTUNITY COST - a matter of perception‘Opportunity Cost’ is the loss of potential gain from other alternatives than best use when the lesser alternative is chosen

A dark shed in the park….A changing room for the staff working in the park

..or , ’Bleck’ – the cool meeting placeTransformed to a trendy places to eat, meet and drink. The leafy spot, quickly became the haunt of people from all cross town

TECHNOLOGY - the big disruptorTechnology changed the usage of vast portfolios of administrative buildings for telephone companies, hospitals and other public services. Buildings that could instead be used for offices and badly needed residential housing.

Stockholm – post officeEmail and Amazon changed the game for traditional postal services. The iconic central post office in Stockholm and vast portfolios of former post offices could be converted into offices and residential housing, while allowing convenient stores, gas stations supermarkets to act as more suitable outlets for mail and parcels service.

Istanbul - Galata PortModern warfare made many defence related real estate assets obsolete and out of date, allowing for mixed developments in attractive former city locations and coastal areas, such as the Galata port in Istanbul, or the many military barracks in central London.

GLOBALISATION – the liberator of water fronts Modern transportation technology and free trade not only gave more people access to more goods at lower cost, but also gave more people access to larger part of the city. Former ports and industrial areas along waterfronts, as here on Manhattan, was freed up and converted into mixed developments with residential areas, offices, commercial space and parks.

Copenhagen - Port & City I/SCopenhagen Port & City company, one of the largest urban wealth funds in Europe, is transforming a large part of harbour area as well as a former military base. Supplying the growing city with thousands of new residential homes and offices, as well as parks, recreation areas, cultural facilities and and a new university. The dividend from the development company is helping to fund the extension of the metro.

Hamburg - Hafen City GmbhThe urban regeneration company set up in the old port, is turning the old warehouses and modern developments into a whole new neighbourhood right in the city centre. Providing new residential homes, offices, as well as a full range of cultural facilities and educational facilities from child care and kindergartens to universities to the booming city.

COMMERCIALIZATION – hidden opportunitiesHong Kong has funded its entire rail infrastructure by letting MTR – its rail company develop the real estate when expanding its network. Unleashing public wealth in a incorporated ‘Rail + Property’ model can fund infrastructure in cities anywhere in the world.

London – King’s Cross StationThe old industrial area around the railway station was developed by a central limited partnership into a desirable location for Google and other international offices, surrounded by a hotel, shops, cafés, bars, restaurants, a new university; and a range of educational and cultural facilities

London – Stratford the Olympic Village London badly needed more residential housing and an upgrade of the eastern part of the city. The Olympic Games provided the opportunity. What was originally built for the athletes’ village around the Stratford Station, was converted providing new homes, hotels and with retail and leisure space, including the Westfield shopping center, moving the center of gravity of the city east.

PROFESSIONAL MANAGEMENT – of the public balance sheetMany cities could double their public investments if they made better use of their wealth—making every penny in yield from better management of assets count, is a penny saved in debt and taxes.