Capturing Popularity Rent Gap: The Asset Operation and Financial Balance of Urban Regeneration Project Under Virtual-Physical Interactions
ZHOU Kai, HUANG Yingling, GU Yunkai, LIU Wenting
Abstract：
This paper focuses on the urban regeneration in historical cities, constructing a financial analysis model to examine the mechanism by which virtualphysical interactions influence the asset operation and financial balance of regeneration projects. Firstly, based on field observation, public information, and interviews, this paper completes an event system analysis of Changsha Chaozong Street Regeneration Project, analyzing the process and mechanisms of urban regeneration with virtual-physical interactions during both its redevelopment phase and operational phase. Secondly, utilizing balance sheets and income statements, the study conducts an in-depth analysis of the asset operation and financial status of various stakeholders (platform companies, operating companies, individual businesses, and residents). These findings reveal that: (1) during the operational phase, the surge in popularity-driven commercial vitality led to a significant increase in property rental income, capturing the so-called “popularity rent gap” before and after regeneration is crucial for achieving overall financial balance; (2) with the platform company in Chaozong Street Regeneration Project bore debt repayment pressure, while the operating company shouldered marketing burden, an imbalance in rent allocation among multiple public-private entities is requiring adjustment; (3) to ensure sustainable property operation and maintain popularity momentum, this paper recommends adopting the “Business Improvement District” and imposing a “special tax”, capturing part of the popularity rent gap to compensate for the platform company’s initial investment and balance the operating company's marketing costs.