Providing Consultation on the Transfer of the Operation Rights of the Integrated Service Building of Beijing Daxing International Airport

Beijing Daxing International Airport is acclaimed as the "first of the New Seven Wonders of the World," and to address the construction and subsequent operation of new airport projects, national approvals explicitly require actively attracting social capital participation.

In 2016, Capital Airport Group Corporation publicly invited investment for the transfer of operating rights of the Beijing Daxing International Airport Integrated Service Building. Ktrue, commissioned by the Capital Airport Group Corporation, provided consulting services for the project, including formulating investment and financing promotion implementation plans, assisting in project promotion, agency solicitation, negotiation, signing contracts, and project financing. Through the investment promotion, the consortium led by China Resources Land won the bid with a construction period payment of 650 million yuan, an annual fee of 15 million yuan during the operation period, and an annual fee growth rate of 15% every 3 years. The Daxing International Airport Integrated Service Building was renamed "China Resources Land Center."

This project is an innovative pilot project in China's civil aviation sector to attract social capital for investment and operation, an active exploration of the introduction of social capital by the Capital Airport Group Corporation, and one of the first civil aviation projects to complete socialized investment promotion.

As one of the first investment promotion projects, there were few experiences to draw upon. At the same time, factors such as the nature of the project land, construction period and quality control requirements, and unstable design and cost posed challenges to the design of the project's investment and financing model, adjustment of construction boundaries, and transfer fees for operating rights. Under tight time constraints and heavy tasks, Ktrue team tackled and solved the existing difficulties one by one, studying and proposing mechanisms for the pricing of operating rights and distribution of excess returns for the project. Through the establishment of three major mechanisms: adjusting construction boundaries, sharing passenger flow risks, and adjusting transfer fees for operating rights, the uncertainty of the cooperation scheme was reduced, and investor confidence was increased. The application of these innovative mechanisms achieved very good investment promotion results for the project.

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