[sustran] Fw: TfL press release - Jubilee Line Extension raises land value around 2 stations by estimated ?2.8billion

[Eric Bruun]

----- Original Message -----
From: "Wetzel Dave" <Davewetzel at tfl.gov.uk>
To: "'For Your Attention Personally'"
<IMCEACCMAIL-lynnsloman+40tfl+2Egov+2Euk+20at+20smtp at Tfl.gov.uk>
Sent: Thursday, July 08, 2004 10:40 AM
Subject: FW: TfL press release - Jubilee Line Extension raises land value
around 2 stations by estimated £2.8billion


Hi

Forgive me for bothering you but I'm forwarding this important press release
as it confirms the work of Don Riley as published in his book "Taken For A
Ride" where he claims that land values rose by £13bn around the eleven new
stations on the Jubilee Line Extension, here in London, UK.

We now need to discuss how to access this value for transport purposes. I
recommend we investigate Land Value Taxation (also called Site Value Rating)
as an efficient and fair method for tapping into land values.

Please don't hesitate to contact me if you require further information.

Dave
Dave Wetzel; Vice-Chair; Transport for London.
Windsor House. 42-50 Victoria Street. London. SW1H 0TL. UK
Tel: 020 7941 4200
Windsor House is close to New Scotland Yard. Buses 11, 24, 148, 211 and N11
pass the door.
Nearest Tube: St. James's Park Underground station.
Nearest mainline stations: Waterloo and Victoria (Both a walk or short bus
ride).


> From: TfL Press Office
> Sent: 08 July 2004 09:32
> Subject: TfL press release - Jubilee line raises land value by
> estimated £2.8billion
>
>  <<...OLE_Obj...>>
>
>  <<...OLE_Obj...>> <<...OLE_Obj...>>
>
> No. 1084
> 08 July 2004
>
> Jubilee line raises land value by estimated £2.8billion at Canary Wharf
> and Southwark Tube stations
>
> A report published today by Transport for London (TfL) suggests that the
> uplift in land values attributed to the Jubilee Line Extension is in the
> region of £2.8billion in the proximity of Canary Wharf and Southwark
> Underground stations.
>
> The pilot study, conducted by globally integrated real estate services and
> money management firm Jones Lang LaSalle*, found that there has been a
> positive impact on local property market values.
>
> The conclusions of the report, 'Land & Property Value Study - Assessing
> the Change in Land & Property Values Attributable to the Jubilee Line
> Extension' are that the estimated uplift in land values is in a wide
> range, but in the order of:
>
> * £2billion around Canary Wharf Underground station;
> *
> * £800million around Southwark Underground station.
>
> Jones Lang LaSalle were commissioned by TfL to undertake a pilot study and
> assess the impact of the Jubilee Line Extension (JLE) on land values at
> two stations, Southwark and Canary Wharf.
>
> The methodology agreed at the outset with TfL involved using property
> market evidence to assess value, applying this value appropriately to the
> property stock in the defined study areas, and then estimating the effect
> of the JLE by comparison with controls not materially affected by it.
>
> NOTES TO EDITORS:
> For further information, please call the TfL Press Office on 020 7941
> 4141.
>
> *Jones Lang LaSalle is a globally integrated real estate services and
> money management firm, operating across more than 100 markets around the
> globe. The company provides comprehensive integrated expertise, including
> management, transaction, advisory and real estate money management
> services, to investors and occupiers locally, regionally and globally.
> Jones Lang LaSalle is an industry leader in property and corporate
> facility management services, with a portfolio of approximately 725
> million square feet (67 million square meters) under management worldwide.
> LaSalle Investment Management, the company's real estate money management
> business, is one of the world's largest and most diverse real estate money
> management firms, with approximately $23 billion of assets under
> management. For more information, visit www.joneslanglasalle.com.
>
> In deciding the extent of the study areas, it was assumed for the purposes
> of this study that the majority of any value uplift would occur within a
> 500m radius of each station for commercial uses and 750m for residential
> uses. The areas used are loosely based on these dimensions.
>
> The pilot study examined value uplift from 1992 to 2002. It should be
> noted that the results of the pilot study are sensitive to the start and
> end dates chosen, and any different period adopted would give differing
> results.
>
> Jones Lang LaSalle adopted controls based on indices covering large parts
> of London in an attempt to isolate the effect of the JLE. This approach
> has the defect of potentially underestimating the impact of the JLE
> because they include, in some cases, the area affected by the JLE.
>
> The estimated land value uplift is sensitive to assumptions made in Jones
> Lang LaSalle's analysis. These assumptions relate to both property stock
> and value, because of the nature of the data available, and the need for
> interpretation in the application of this data. For these reasons the
> exercise is one of estimate and judgement, not calculation, hence the wide
> range of figures reported.
>
> ATIS REAL Weatheralls were also commissioned to estimate the uplift in
> land value as a result of the JLE using a different methodology and data
> sets to those used by Jones Lang LaSalle. The consultants are expected to
> finalise their work in summer 2004.
>
> The full report is available on the TfL website (www.tfl.gov.uk) at
> www.tfl.gov.uk/tfl/about/report-library/jle/extension.shtml.
>
>
>
>


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