AC5007 - Batch 8 - LI XIN

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EconomicFeasibilityStudyonAdaptiveReuseofMuseumsfromthe PerspectiveofMinimalIntervention:ACaseStudyoftheRenovationofthe

OldShanghaiNaturalHistoryMuseum

LIXIN

A0298156N

Dissertationsubmittedinpartialfulfillmentoftherequirementsforthedegree Of

MasterofArtsinArchitecturalConservation

Atthe

DepartmentofArchitecture

NationalUniversityofSingapore

April2025

Supevisor:Prof.MaximeCedricDecaudin

Abstract

Inrecentyears,withtheslowdownofeconomicgrowthandthecoolingofthe realestatemarket,China'straditionallandfinancemodelhasfacedincreasing challenges,makingitdifficulttosustaintheconventionalgovernment-subsidized urbanrenewalprojects.Historicalbuildings,especiallymuseumsandmemorials locatedincitycenters,facehighrenovationcosts,limitedrevenuepotential,and alackofmarketinvestmentinterestinadaptivereuse.Inthiscontext,the existingeconomicmodelsforadaptivereuseofmuseumsandmemorials urgentlyneedoptimizationtoseekmorefeasiblesolutions.

Thispaperisdividedintosixparts.Thefirstpartistheintroduction,which discussestheresearchbackground,significance,andliteraturereviewThe secondpartdefinesconceptsandanalyzestheories,focusingontheapplication ofthePrincipleofMinimalInterventionintheadaptivereuseofhistorical buildings,combinedwiththeAdaptiveReusetheory,toexplorehowtoachieve economicfeasibilitythroughlow-costrenovationswhilepreservingtheoriginal appearanceofthebuildings.ThethirdpartcomparesinternationalandChina adaptivereusecases,introducingtherenovationexperiencesoftheTateModern intheUKandtheBeijingQianmenCulturalandCreativeIndustrialPark, analyzinghowtheyimprovetheeconomicreturnsofadaptivereuseprojectsby reducingstructuralinterventions,optimizingspaceutilization,andinnovating businessmodels.ThefourthpartisacasestudyoftherenovationoftheOld ShanghaiNaturalHistoryMuseum,usingdatafromtheplannedrenovationin thefirsthalfof2024asasample,focusingontherevenueanalysisofdifferent financingmodelsandthefinancialfeasibilityanalysisofdifferentrenovation plans.ThefifthpartismainlyaboutStakeholderDynamicsinAdaptiveReuse ProjectsThesixthpartpresentsconclusionsandrecommendations

Thestudyfindsthat,first,minimalinterventionstrategiescanreducerenovation costsandimprovetheeconomicfeasibilityofprojects.Understrictplanningand preservationregulations,reducingunnecessarystructuralmodificationsand focusingonspacereuse,functionaloptimization,andlightweightupdatescan effectivelylowerengineeringcostswhileenhancingmarketappeal.Second, innovativefinancialmodels(suchasPublic-PrivatePartnerships(PPP)and usagerightsexchange)caneffectivelyfillthefundinggapforadaptivereuse projectsandreducefiscaldependencyFinally,thestudyconcludesthatthe renovationofhistoricalpreservationbuildingsshouldavoidlarge-scale demolitionandreconstructionInstead,throughpreciseinterventionsand businessmodelinnovation,long-termsustainableoperationscanbeachieved whilepreservingculturalvalue

Keywords:UrbanRenewal,AdaptiveReuse,PrincipleofMinimalIntervention, EconomicFeasibility

ListofFigures

Figure1https://wwwarchdailycom/429700/ad-classics-the-tate-modern-herzo g-and-de-meuron

Figure2.https://english.beijing.gov.cn/consuminginbeijing/onlyinbeijing/mustse e/updatesofmustsee/202104/t202104082349036.html

Figure3.TheofficialwebsiteoftheShanghaiMunicipalPeople'sGovernment

Figure4.https://mbd.baidu.com/newspage/data/dtlandingsuper?nid=dt49577 10244234837618&sourceFrom=searcha

Figure5.TheofficialwebsiteoftheShanghaiMunicipalPeople'sGovernment

Table1.tableprovidebyauthor

Acknowledgement

Comingfromamodestfamily,wheremostrelativesworkedaslaborersor farmers,Igrewupadmiringprofessionsthatrequiredacademicexcellence.Asa child,IoncedreamedofbecomingascientistLater,Iaspiredtobeauniversity professor.Inrecentyears,whileIoftentalkedaboutthefuturewithfriends,I foundmyselflesscertainaboutexactlywhatIwantedtodoIonlyknewI wantedtoachievesomethingmeaningful.

IcompletedmyundergraduatestudiesinRealEstateDevelopmentand ManagementatShanghaiUniversityofFinanceandEconomicsHowever,after graduation,Ibeganworkingonurbanregenerationprojectsinthecoreareasof Shanghai.Overtime,IdiscoveredthatItrulyenjoyedthework.Witnessingold neighborhoodsbeingrevitalizedandhistoricalbuildingsbroughtbacktolife,I realizedthateventhoughthisindustrymightnotbehighlyprofitable,itholds thepowertomaketangibleimprovementstopeople’slivesThatsenseof achievementcamenaturally.

AtthestartoftheArchitecturalConservationprogram,Iwasworriedthatmy lackofarchitecturaltrainingwouldholdmebackButafterjustafewweeksof classes,Irealizedmyfearswereunfounded.Perhapsbecausemanystudents alreadyhadarchitecturalbackgrounds,thecoursefocusedmoreonthetheories andmethodsofconservationratherthantechnicaldesign.Havingworkedin investmentpreviously,Iinitiallyapproachedheritageconservationfroman economicperspective.Whenstudyingadaptivereuse,Icaredmoreabout functionalpositioningandfinancialviabilitythanaboutthearchitectureitselfIn contrast,manyofmyclassmateswitharchitecturalbackgroundsweremore concernedwithdesign,aesthetics,andcommunityengagementThiscontrast perfectlyreflectstheinterdisciplinarynatureofthefield.

Overthepastyear,I’vecometoseethatthemostvaluablelessonfromthis programislearningtoapproachproblemsfromdifferentangles.EvenifI continuetoworkininvestmentorfinance,Inowtrytoconsiderhowmy colleaguesinarchitectureorengineeringmightthinkandwhytheythinkthat wayNevertheless,duetomybackground,thisthesisremainsfocusedonthe economicfeasibilityofhistoricbuildingadaptation.Ihopeitofferspractical insightsforovercomingthechallengesthatmanyurbanregenerationprojects currentlyface.Inparticular,Iexplorewhetherit'spossibletoenhanceeconomic valuewhileminimizingstructuralintervention

Iwouldliketoexpressmydeepestgratitudetomythesisadvisor,Professor MaximeCedricDecaudin,forhelpingmerefinemytopicandthoughtfully guidingmethroughtheresearchprocessIamalsothankfultomyparentsfor

theirunwaveringsupportduringmygraduatestudiesespeciallymymother, whoseselflessencouragementhasmeanttheworldtome.Tomygirlfriend, WangXiaonan,thankyouforcomfortingmeduringmomentsofuncertaintyAnd tomydearfriendZhengWan,thankyouforbeingbymysidethroughoutthis journeyandhelpingmeseethatlifeholdsmanypathsandpossibilities.Finally,I wanttothankallmyfamilyandfriendsfortheircompanionshipand encouragement.Youhavemadethisgraduateexperiencetrulymeaningfuland fulfilling.

Chapter1.Introduction

1.1ResearchBackground

Sincethereformandopeningup,China'seconomyhasdevelopedrapidly,and theurbanizationratehascontinuedtorise.By2024,China'spermanent urbanizationratehasreached67%,exceeding60%IntheprocessofChina's rapideconomicdevelopment,Chinesesocietyhastransformedfroma developingcountrywithapredominantlyprimaryandsecondaryindustry-based economytoamoderatelycivilizedanddevelopedurbansocietywithatertiary industry-basedeconomy.Inthisprocess,China'slandfinancesystemhasplayed animportantroleLandtransferincomehasprovidedlocalgovernmentswith sufficientfinancialsupport,enablingthemtoinvestininfrastructure constructionsuchastransportation,energy,waterconservancy,andpublic housing,acceleratingChina'surbanizationprocessandpromotingnational development.However,thismodelofgeneratingfiscalrevenuethroughland transfershasfacedsignificantchallengesduetothereductionofavailableland fortransferandthedownturnintherealestateindustry,posingriskstofiscal sustainabilityandcreatingobstaclesforsubsequenturbanrenewal.Asaresult, thetraditionalgovernment-subsidizedurbanrenewalmodelhasbecome unsustainable.

Therefore,formuseumsandmemorialhallslocatedinurbancentersthatalready sufferfrompoorprofitability,adaptivereusefaceschallengesincludinghigh renovationcosts,limitedrevenuepotential,andmarketreluctancetoinvest Firstaretheexorbitantrenovationcosts-urban-centermuseumsrequire massiveinvestmentsinlandacquisition,structuralmodifications,andheritage preservation,withtotalcostsoftenexceedingthoseofconstructingnew functionalbuildings.Second,urbanplanningregulationsfrequentlyimpose

restrictionsonpost-renovationfunctionalitiesandallowablefloorareas, constrainingtheproject'sprofit-generatingcapacity.Furthermore,mosturban renewalprojectsinvolvemultifacetedconsiderationsincludingheritage conservation,publicwelfaresafeguards,serviceimprovements,functional zoningupgrades,andenvironmentalenhancements,typicallycharacterizedby extendedinvestmentcycles,substantialcapitalrequirements,thinprofitmargins, andambiguousexitmechanisms(suchaswhetherhistoricallypreserved buildingscanbetransferredtonon-stateentitiesorqualifyforREITsissuance). Theresultanthighuncertaintyininvestmentreturnsdetersmarket-oriented enterprisesfromparticipation.Compoundedbythediminishingsustainabilityof land-basedfiscalrevenuemodels,thesefactorscollectivelycreatesignificant financingobstaclesforsuchprojects.

1.2ResearchSignificance

PromotingEconomicFeasibilityResearchonAdaptiveReuseofHistorical Buildings

ThisstudycombinesthePrincipleofMinimalInterventionwiththeAdaptive Reusetheorytoexplorehowtoreducerenovationcostswhileenhancingproject revenue,providingascientificandreasonableeconomicevaluationframework fortherenovationofhistoricalmuseumsandmemorialsThisnotonlyfillsthe currentgapinChinaresearchoneconomicmodelsforhistoricalbuildingsbut alsoprovidesmorefeasibledecision-makingreferencesforgovernments, investors,andurbanplanners.

ProvidingaSustainablePathforUrbanRenewal

Aslandfinancefacesdifficulties,thetraditionalgovernment-subsidizedmodel hasbecomeunsustainable,whilemarket-orientedrenovationsfacethedilemma

ofhighcostsandlowreturns.Thisstudyanalyzesinnovativefinancialmodels suchasusagerightsexchangeandresourcebundling,proposinghowtoleverage marketforcestorevitalizehistoricalbuildingsunderfiscalconstraints,exploring asustainablepathforurbanrenewal,andprovidingpracticalreferencesfor futuresimilarprojects

BalancingCulturalHeritagePreservationandCommercialOperations

Therenovationofhistoricalmuseumsandmemorialsoftenfacesthe contradictionbetweenculturalvalueandeconomicbenefitsThisstudyproposes strategiessuchaspreciseinterventionsandbusinessmodelinnovationtoensure economicself-sufficiencywhilepreservingthehistoricalcharacteristicsofthe buildings.Thisnotonlyhelpsincreasepublicawarenessofculturalheritagebut alsoenhancesthesocialandeconomicvalueofhistoricalbuildings,promoting culturaltourismandcreativeindustries

1.3LiteratureReview

UrbanRenewalofCity-CenterMuseumsandMemorials

City-centermuseumsandmemorials,asimportantcomponentsofurbancultural heritage,havealwaysbeenafocusofurbanrenewalresearch.Withthe accelerationofurbanization,manycitiesfacethecontradictionbetween historicalbuildingpreservationandurbandevelopmentZhangSong(2007), inIntroductiontoHistoricalCityPreservation,pointsoutthathistorical buildingsarenotonlycarriersofurbanculturalmemorybutalsoimportant componentsofurbanspatialstructure.Intheprocessofurbanrenewal,howto preservehistoricalbuildingswhilerealizingtheireconomicvalueisanurgent issuetoaddressLiHeping(2012),inPreservationandReuseofUrbanHistorical Buildings,proposesthatthepreservationandreuseofhistoricalbuildings

shouldfocusonfunctionalreplacementandspaceoptimization,enhancingtheir economicvaluethroughreasonablefunctionaladjustmentswhilepreserving theirculturalsignificance.Forexample,transformingmuseumsintoculturaland creativeindustrialparkspreservesthehistoricalvalueofthebuildingswhile enhancingeconomicreturnsthroughcommercialandculturalactivitiesWang Jianguo(2015),inPreservationandReuseofHistoricalBuildingsinUrban Renewal,furtherpointsoutthattherenovationofcity-centermuseumsand memorialsoftenfaceshighrenovationcostsandlimitedrevenuepotential, makingthetraditionalgovernment-subsidizedmodelunsustainableTherefore, exploringneweconomicmodelsandfinancingmethodshasbecomearesearch focus.ZhuGuangya(2005),inPreservationandReuseofHistoricalBuildings, emphasizesthatthepreservationandreuseofhistoricalbuildingsshouldfocus ontheintegrationofculturalvalueandsocialfunctions,enhancingtheir economicvaluethroughreasonablefunctionalreplacementDongWei(2014), inCulturalHeritagePreservationinUrbanRenewal,proposesthatthe renovationofcity-centermuseumsandmemorialsshouldfocusoncoordination withoverallurbanplanning,enhancingeconomicfeasibilitythroughfunctional optimizationandspacereuseExistingresearchhaspredominantlyfocusedon enhancingeconomicfeasibilitythroughfunctionaladaptation,spatial optimization,andpolicycoordination,yetsystematicexplorationoftheunique characteristicsofurban-centermuseumsandmemorialhallsspecificallytheir publicculturalmandates,highvisitortrafficdemands,andmulti-functional potentialremainsconspicuouslyunderdeveloped

AdaptiveReuse

AdaptiveReuseisanimportantstrategyinthepreservationofhistorical buildingsandurbanrenewal,emphasizingtheenhancementofeconomicvalue throughfunctionalreplacementandspaceoptimizationwhilepreservingthe historicalvalueofbuildingsLiuBoying(2016),inPreservationandAdaptive ReuseofIndustrialHeritage,pointsoutthatthecoreofadaptivereuseliesin

achievingfunctionaltransformationthroughminimalintervention,thereby extendingthebuilding'slifespanandenhancingitseconomicvalue.ChenKeshi (2018),inUrbanRenewalandHistoricalBuildingPreservation,throughthe analysisofChinaandinternationalcases,proposesthatthekeytosuccessful adaptivereuseliesinthematchingoffunctionsandspacesForexample,the TateModernintheUKtransformedanoldpowerplantintoamodernart museum,preservingthehistoricalstyleofthebuildingwhileenhancing economicreturnsthroughmodernartexhibitionsandculturalactivities.Zhang Jie(2019),inPreservationandRenovationDesignofHistoricalBuildings,further explorestheeconomicfeasibilityofadaptivereuse,arguingthatreasonable functionalreplacementandbusinessmodelinnovationcanenhanceeconomic benefitswithoutdamagingthebuilding'sstructure.WuLiangyong(2001), inIntroductiontoHumanSettlementEnvironmentScience,proposesthat adaptivereuseshouldfocusontheharmonybetweenbuildingsandthe environment,enhancingeconomicvaluethroughfunctionaloptimizationand spacereuse.WangXiangrong(2017),inPreservationofHistoricalBuildingsin UrbanRenewal,emphasizesthatthekeytosuccessfuladaptivereuseliesinthe matchingoffunctionsandspaces,enhancingtheeconomicvalueofbuildings throughreasonablefunctionalreplacement

PrincipleofMinimalIntervention

ThePrincipleofMinimalInterventionisanimportanttheoryinthepreservation andrenovationofhistoricalbuildings,emphasizingtheminimizationofdamage totheoriginalappearanceofbuildingswhilepreservingtheirhistoricaland culturalvalue.LiuBoying(2016),inPreservationandAdaptiveReuseof IndustrialHeritage,pointsoutthatthePrincipleofMinimalInterventionreduces unnecessarystructuralmodifications,loweringrenovationcostswhile enhancingthemarketappealofprojectsZhangJie(2019),inPreservationand RenovationDesignofHistoricalBuildings,furtherexplorestheapplicabilityof thePrincipleofMinimalInterventionintherenovationofhistoricalbuildingsin

analysis.

a.LiteratureAnalysis:ByreviewingChinaandinternationalliteratureon historicalbuildingpreservation,adaptivereuse,andthePrincipleofMinimal Intervention,existingresearchresultsaresummarizedtoprovidetheoretical supportforthisstudy

b.CaseStudy:Typicalmuseumandmemorialrenovationcases(suchasthe TateModernintheUKandtheBeijingQianmenCulturalandCreativeIndustrial Park)areselectedtoanalyzetheirrenovationstrategies,economicmodels, andimplementationeffects

c.EmpiricalAnalysis:TakingtherenovationoftheOldShanghaiNatural HistoryMuseumastheresearchobject,theeconomicfeasibilityandsocial benefitsofdifferentrenovationplansareexploredthroughfieldresearchand dataanalysis (2)Innovation

Existingresearchmostlyfocusesonthepreservationandrenovationofhistorical buildings,withlessattentionpaidtothespecificofcity-centermuseumsand memorials.Thisstudyfocusesonthisspecifictypeofhistoricalbuilding, exploringitsadaptivereusestrategiesinurbanrenewalAtthesametime,the PrincipleofMinimalInterventioniscombinedwiththeAdaptiveReusetheoryto proposeanewapproachthatachieveseconomicfeasibilitythroughlow-cost renovationandbusinessmodelinnovationwhilepreservingthehistoricalvalue ofbuildings.Finally,throughempiricalanalysis,amuseumandmemorial renovationmodelsuitableforthecontextofurbanrenewalinChinaisproposed, providingdecision-makingreferencesforgovernments,investors,andurban planners.

Chapter2.ConceptualDefinitionandTheoreticalBasis

2.1ConceptualDefinition

City-CenterMuseums

City-centermuseumsrefertopublicculturalfacilitieslocatedinthecoreareasof cities,withhighhistoricalandculturalvalue.Thesemuseumsareusuallyhoused inhistoricalbuildingsorsitesofspecialsignificance,servingascarriersofurban culturalmemoryandimportantcomponentsofurbanspatialstructure.Zheng Shiling(2006)1,inUrbanCultureandUrbanDesign,pointsoutthatcity-center museumsarenotonlywindowsfordisplayingurbanhistoryandculturebutalso keyobjectsforpreservationandreuseinurbanrenewal.Duetotheirunique geographicallocation,city-centermuseumsoftenfacehighrenovationcostsand complexplanningrestrictions,makingitasignificantchallengetoachieve economicfeasibilitywhilepreservingtheirculturalvalueinurbanrenewal

UrbanRenewal

Urbanrenewalreferstotheprocessofimprovingthefunction,environment,and economicvalueofoldanddecliningurbanareasthroughrenovation, reconstruction,orreuseZouDeci(2010)2,inUrbanRenewalandSustainable Development,proposesthatthecoregoalofurbanrenewalistoachieve sustainableurbandevelopment,improvingboththematerialenvironmentand thepreservationofhistoricalandculturalresources.ZhaoYanjing(2013)3, inLandFinanceandFinancialInnovationinUrbanRenewal,furtherpointsout thaturbanrenewalisnotonlythetransformationofmaterialspacebutalsothe reshapingofsocial,economic,andculturalvalues.Forcity-centermuseumsand memorials,urbanrenewalrequiresexploringnewfunctionalpositioningand economicmodelswhilepreservingtheirhistoricalandculturalvalue.

2.2TheoreticalBasis

Thisstudysystematicallyreviewsandsummarizesthetheoriesrelatedto museumurbanrenewal,establishesanoveralltheoreticalframework,and conductsfurthertheoreticalanalysisThestudyfindsthattherenovationand renewalofcity-centermuseumsandmemorialsmainlyinvolvethefollowing theories:culturalheritagepreservationtheory,adaptivereusetheory,andthe PrincipleofMinimalIntervention.

CulturalHeritagePreservationTheory

Culturalheritagepreservationtheoryemphasizesthepreservationofhistorical buildings,sites,andculturallandscapestoinheriturbanhistoricalmemoryand culturalvalue.LuoZhewen(2004)4,inTheoryandPracticeofCulturalHeritage PreservationinChina,pointsoutthatthecoreofculturalheritagepreservation liesinmaintainingauthenticityandintegritywhileendowingitwithnewsocial functions.LüZhou(2012)5,inTheoryandPracticeofCulturalHeritage Preservation,furtherproposesthatculturalheritagepreservationshouldfocus on "preservation-baseddevelopment,"enhancingeconomicvaluethrough functionalreplacementandspaceoptimizationwhilepreservingtheoriginal appearanceofhistoricalbuildings.Forcity-centermuseumsandmemorials, culturalheritagepreservationtheoryprovidesanimportanttheoreticalbasis, emphasizingthemaximizationofhistoricalstyleandculturalvalueduringthe renewalprocess

AdaptiveReuse

AdaptiveReusereferstotheprocessofendowingbuildingswithnewfunctions andeconomicvaluethroughfunctionalreplacementandspaceoptimization withoutdamagingtheiroriginalstructureandhistoricalstyleThecoreofthis theoryliesin"adaptability,"whichinvolvesflexiblyadjustingthefunctional positioningofbuildingsbasedontheircharacteristicsandtheneedsofthe

surroundingenvironment,enablingthemtomeetmodernsocietaldemands whilepreservingtheirhistoricalandculturalvalue.Adaptivereusetypically includesthefollowingkeysteps:first,functionalreplacement,whichinvolves convertingtheoriginalfunctionofabuildingintoanewuseSecond,space optimization,whichinvolvesre-planninganddesigningtheinternalspace withoutalteringthemainstructuretomeetnewfunctionalrequirements.Third, economicfeasibility,whichinvolvesenhancingtheeconomicvalueofbuildings throughcommercialactivitiesorculturalprojects,enablingthemtoachieve self-sufficiencyorprofitabilityTherefore,theadvantageofadaptivereuseliesin itsabilitytoextendthelifespanofbuildings,enhancetheirsocialandeconomic valuethroughfunctionalinnovation,andreduceresourcewasteand environmentalpollution.

PrincipleofMinimalIntervention

ThePrincipleofMinimalInterventionreferstominimizingdamagetothe originalstructureandstyleofhistoricalbuildingsduringtherenovationprocess, preservingtheirhistoricalandculturalvaluetothegreatestextent.Thecoreidea ofthisprincipleis"maximumpreservationwithminimalmodification," emphasizingtheavoidanceofunnecessarystructuralchangesanddecorative additionsduringrenovation.Instead,preciseinterventionsareusedtoaddress functionalandsafetyissues.ThespecificpracticesofthePrincipleofMinimal Interventioninclude:first,structuralpreservation,whichinvolvesretainingthe originalstructureofbuildingsasmuchaspossible,avoidinglarge-scale demolitionorreconstruction,suchasusingreinforcementinsteadofrebuilding toaddressstructuralsafetyissues.Second,materialpreservation,whichinvolves usingmaterialsidenticalorsimilartotheoriginalmaterialsforrestorationto maintainthehistoricalstyleofbuildings.Third,functionaloptimization,which involvesenhancingtheusevalueofbuildingsthroughlightweightupdates withoutdamagingtheiroriginalstructureTherefore,theadvantageofthe PrincipleofMinimalInterventionliesinitsabilitytoreducerenovationcosts,

Chapter3.ComparisonofInternationalandChina

AdaptiveReuseCases

Adaptivereusehasemergedasacriticalstrategyinglobalurbanrenewalefforts, offeringasustainablepathwaytorevitalizehistoricalstructureswhilebalancing culturalpreservationandeconomicfeasibilityByexaminingrepresentative internationalanddomesticcases,thisstudyaimstouncoverhowadaptivereuse projectscanenhanceeconomicreturnsthroughreducedstructuralinterventions, optimizedspatialutilization,andinnovativefinancialmodels.Thissection providesadetailedanalysisoftwolandmarkprojects:theTateModernin London,UnitedKingdom,andtheBeijingQianmenCulturalandCreative IndustrialParkinChina.Throughcomparativeevaluationoftheirrenovation strategies,operationalframeworks,andfinancialoutcomes,thisanalysis identifiesuniversalprinciplesandcontext-specificadaptationsthatcontributeto projectsuccess,withparticularemphasisontheroleofinnovativefinancial mechanismssuchasPublic-PrivatePartnerships(PPP)andusagerights exchangemodelsinaddressingfundingchallengesandreducingfiscal dependency.

3.1InternationalCase:TateModern,UK

TheTateModernislocatedonthesouthbankoftheThamesinLondonIts predecessorwasathermalpowerplant(BanksidePowerStation)builtinthe mid-20thcentury.Afterthepowerplantceasedoperationsin1981,itbecamean abandonedindustrialbuildingatriskofdemolition.However,duetoitsunique industrialarchitecturalstyleandvastspatialpotential,theTateGallerydecided totransformitintoamodernartmuseum,whichofficiallyopenedin2000The renovationoftheTateModernisaclassicinternationalcaseofadaptivereuse,

successfullytransforminganindustrialheritagesiteintoaworld-classcultural landmark.

Duringtherenovationprocess,theTateModernfullyembodiedthePrincipleof MinimalInterventionandtheAdaptiveReusetheory.ArchitectsHerzog&de Meuronmaximizedthepreservationofthepowerplant'soriginalstructure, includingitsiconicchimneyandturbinehall.Theturbinehallwastransformed intoamassiveexhibitionspace,withaheightof35metersandawidthof152 meters,makingitoneofthelargestindoorartexhibitionspacesintheworld

Thisdesignnotonlypreservedthehistoricalstyleoftheindustrialbuildingbut alsoendoweditwithnewfunctions,enablingittoaccommodatelarge-scaleart installationsandexhibitions.Additionally,thearchitectsimprovedthebuilding's lightingandventilationconditionsbyaddingglasscurtainwallsandskylights, enhancingthecomfortofthespaceThislightweightrenovationapproachnot onlyreducedcostsbutalsomaximizedthepreservationofthebuilding's historicalvalue.

Figure1TheexterioroftheTateModern

ThesuccessoftheTateModernliesnotonlyinitsarchitecturalrenovationbut alsoinitsinnovativebusinessmodel.Themuseumisnotonlyavenueforart exhibitionsbutalsogeneratesdiversifiedincomethroughcommercialfacilities suchascafes,restaurants,andsouvenirshopsMoreover,themuseumattractsa largenumberofvisitorsthroughtemporaryexhibitions,artworkshops,and educationalactivities.Forexample,theannual"TurbineHallProject"invites internationallyrenownedartiststocreatelarge-scaleinstallationart,attracting globalartenthusiasts.AccordingtotheTateGallery'sannualreport,sinceits openingin2000,themuseumhasattractedover5millionvisitorsannually, makingitoneofLondon'smostpopulartouristattractions.Additionally,the museumhasdriventheeconomicdevelopmentofthesurroundingarea, promotingculturalrevivalandurbanrenewalintheSouthBank.Thesuccessof theTateModerndemonstratesthathistoricalbuildingscanachieveeconomic feasibilitywhilepreservingtheirculturalvaluethroughminimalintervention andfunctionalinnovation.

3.2ChinaCase:BeijingQianmenCulturalandCreativeIndustrial Park

TheBeijingQianmenCulturalandCreativeIndustrialParkislocatedinthe ChaoyangDistrictofBeijingItspredecessorwasastate-ownedfactorybuiltin the1950sWiththetransformationofBeijing'surbanfunctions,thefactory ceasedoperationsinthe1990s,becominganabandonedindustrialsite.In2006, theBeijingmunicipalgovernmentdecidedtotransformitintoaculturaland creativeindustrialpark,whichofficiallyopenedin2008.Therenovationofthe QianmenCulturalandCreativeIndustrialParkisatypicalChinacaseofadaptive reuse,successfullytransforminganindustrialsiteintoahubforculturaland creativeindustries.

Duringtherenovationprocess,theQianmenCulturalandCreativeIndustrial ParkfullyintegratedthePrincipleofMinimalInterventionandtheAdaptive Reusetheory.Therenovationteammaximizedthepreservationofthefactory's originalstructure,includingitsworkshops,warehouses,andchimneysThe architectstransformedtheworkshopsintoofficespacesandartstudiosthrough lightweightupdates,preservingthehistoricalstyleoftheindustrialbuilding whilemeetingtheneedsoftheculturalandcreativeindustry.Forexample,the tallworkshopsweretransformedintomultifunctionalspacessuitableforboth officeuseandexhibitionsoreventsAdditionally,thearchitectsimprovedthe building'slightingandventilationconditionsbyaddingglasscurtainwallsand skylights,enhancingthecomfortofthespace.Thisrenovationapproachnotonly reducedcostsbutalsomaximizedthepreservationofthebuilding'shistorical value

theQianmenCulturalandCreativeIndustrialParkfocusedmoreonenhancing industrialfunctions,achievingdiversifiedincomethroughtheintroductionof culturalandcreativeenterprisesandcommercialfacilities.

Second,intermsofeconomicreturns,bothcasesachievedsignificanteconomic returnsthroughbusinessmodelinnovation,becomingculturallandmarksand touristhotspotsintheirrespectivecities.However,theTateModern'seconomic returnsmainlycamefromticketsalesandcommercialfacilities,whilethe QianmenCulturalandCreativeIndustrialPark'seconomicreturnsmainlycame fromrentalincomeandcommercialfacilities.Finally,intermsofsocialbenefits, bothcasesdrovetheeconomicdevelopmentofthesurroundingareas, promotingurbanrenewalandculturalrevival.However,theTateModern's socialbenefitsweremainlyreflectedinculturaleducationandpublicactivities, whiletheQianmenCulturalandCreativeIndustrialPark'ssocialbenefitswere mainlyreflectedinindustrialagglomerationandjobcreation.

Fromthesetwocases,wecanderivethefollowingexperiencesandinsights:First, thePrincipleofMinimalInterventionisofgreatsignificanceintherenovationof historicalbuildings.Byminimizinginterventionstotheoriginalstructure, renovationcostscanbereducedwhilemaximizingthepreservationofthe historicalstyleandculturalvalueofbuildings.Second,spaceoptimizationiskey toenhancingtheusevalueandeconomicbenefitsofbuildingsThrough reasonablespaceplanninganddesign,modernfunctionalrequirementscanbe metwhileimprovingthecomfortandattractivenessofbuildings.Finally, businessmodelinnovationisanimportantmeansofachievingeconomic feasibilityforprojects.Byintroducingdiversifiedcommercialfacilitiesand culturalactivities,projectscanachieveeconomicself-sufficiencyandsustainable development

BuildingOverview

Thetotalbuildingareaisapproximately12,655.45squaremeters(withan additional273.46squaremetersoftemporarystructures),andthesingle-floor area(buildingoutline)isapproximately2,591squaremetersThesiteareais approximately2,8774squaremetersThetotalbuildingheightisapproximately 26meters.Thebuildinghasfivefloorsoverall,withsixfloorsinsomeareas.In termsofthebuilding'scurrentcondition,theexteriorfacadeiswell-preserved, withnoadditionaldecorationsordamageexceptforsomeplantsonpartsofthe facadeMostoftheinteriorspacesareexquisitelydecoratedandwell-preserved, butduetolong-termvacancy,theinteriordecorationhassignificantlyaged.The mainpublicandofficespacesarelocatedonthesecondfloorandabove; historically,thefirstfloorwasusedforstorageandequipment,withnonatural lighting Figure4HistoricalphotosoftheOldNatureMuseum

LandOwnership

ThelandownershipofNo.260Yan'anEastRoadincludesthebuildingitselfand thealleyspacestotheeastandnorth.TothenorthofthebuildingaretheBund CenterofficebuildingandtheWestinHotelTothewestofthebuilding,themain buildingofYanheBuildingandtheshopsalongHenanMiddleRoadhave separatelandownership,mainlyconsistingofdirectlymanagedpublichousing andunit-ownedproperties,withsomeassetsownedbyNewHuangpuReal EstateCo.,Ltd.TheauxiliarybuildinginsideYanheBuildingisdividedinto multiplelandownerships,mainlyconsistingofdirectlymanagedpublichousing andindividual-ownedpropertiesundertheShanghaiMaritimeSystem.Thealley betweentheauxiliarybuildingandNo.260Yan'anEastRoadbelongstothe northernmostbuildingoftheauxiliarybuilding.

categorizedintominimalinterventionretrofittingandsubstantialadaptivereuse renovations.

InvestmentCalculation

Option1:Old

NaturalHistory

MuseumandNew

HuangpuUsage

RightsExchange, No Structural Renovation

Option2:Old NaturalHistory

MuseumandNew

HuangpuUsage

RightsExchange, WithStructural Renovation

Option 3: Expropriation+

Structural Renovation

Constructio nPlan Simple Renovat ion Extensiv e Renovat ion Simple Renovat ion Extensiv e Renovat ion Simple Renovat ion Extensiv e Renovat ion Expropriati onCost --30,000--178,000-108,000

Constructio nPeriod 33month36month42month60month60month60month Total Investment except Expropriati onCost -26,700-26,700-25,944-56,886 -157,142-139,623 LandUse RightsCost forOld Natural History -----78,000-78,000

Museum

LandPrice Adjustment Cost ----2,755-4,526-2,471

Engineering Renovation -25,000-25,000-23,000-50,000-60,142-46,000

Financial Cost -1,700-1,700-2,944-4,131-14,474-13,152

Total Rental Income fromOld Natural History Museum (Until 2059)

90,31099,96286,036 100,146111,083103,475

Initial RentalRate forOld Natural History Museum (RMB/sq.m· day) 808580808585

Net Investment Income fromOld 63,61073,26260,09243,261-46,059-36,148

renovationtypicallyinvolvesinteriordecoration,equipmentupdates,and functionaladjustments,whilesimplerenovationmainlyinvolvesnecessary maintenanceandlightweightupdates.

Fromaprofitabilityperspective,theexpropriationmodelfailstoachieve financialviabilityduetoitshighupfrontcostsandinsufficientpost-renovation revenuetooffsetinitialinvestmentsIncontrast,userightsexchangemodels demonstratehigherreturnrates,particularlyinscenariosrequiringnostructural modifications.Whenstructuralmodificationsareimplemented,extensive renovationsyieldlowerprofitabilityduetoelevatedcosts.Conversely,in structuralmodification-freescenarios,moresubstantialrenovationsdespite highercostsgeneratereturnsexceedingrenovationexpenditures,resultingin comparativelyhigherprofitabilityTheseapproachesachievefastereconomic returnsthroughcost-efficientmodificationsandfunctionaloptimization. Comprehensiveanalysisrevealsthatimplementingextensiverenovations withoutstructuralmodificationsmaximizesprofitability.Thisdemonstratesthat undertheminimalinterventionprinciple,lightweightupgradesandfunctional optimizationcanenhanceeconomicfeasibilitywhilereducingrenovationcosts

Comprehensivelyevaluatingtheplans,theusagerightsexchangemodelwithno structuralrenovationandsimplerenovationperformsbestintermsofcostand revenue.Theseplansnotonlyreducerenovationcostsbutalsoachievehigher economicreturnsthroughfunctionaloptimizationandbusinessmodel innovation.Theusagerightsexchangemodelwithstructuralrenovationand extensiverenovation,althoughmoreexpensive,remainsfeasibleincertain situations,especiallywhenthebuildingstructurehassafetyhazardsorhigher functionalrequirements.However,allplansundertheexpropriationmodelare economicallyunfeasibleduetotheirhighcostsandlimitedrevenue.

5.2InstitutionalandRegulatoryCoordination

Adaptivereuseprojectsinurbancentersoftenfaceseriousdelaysevenbefore theybeginOnemajorreasonisfragmentedownershipHistoricalbuildings,such astheOldShanghaiNaturalHistoryMuseum,usuallyhavealongandcomplex propertyhistory.Ownershipmaybesplitbetweengovernmentagencies, collectives,privateindividuals,andlong-termtenants.Thissituationmakesland consolidationverydifficult.

InthecaseoftheOldMuseum,thisfragmentationsloweddowntheearly negotiationphase.Therewasnolegalframeworkthatcouldforceall stakeholderstocooperate.Traditionalapproacheslikefullexpropriationor large-scalebuyoutsweretoocostlyandpoliticallysensitive.Someownersalso heldadvantageouslegalorfinancialpositionsWithoutstrongincentivesorlegal guarantees,theywereunwillingtoreleasetheirrightsTherefore,theproject exploredalternativeconsolidationstrategies.Theseincludedusage-based phasedacquisitionandmonetizinglong-termleaseholds.However,amajor obstacleremained:thelackofflexibleregistrationandtransactionsystemsfor propertieswithmixedownershipThiscausedlongdelaysintheapproval processInvestorsbecamehesitant,unsurewhetherdevelopmentrightscouldbe transferredclearlyorsecurely.IntheOldMuseumproject,theseearlychallenges nearlyhaltedtherenovationbeforedesignworkevenstarted.

5.3FinancialUncertaintyandInvestorHesitation

Mostadaptivereuseprojectsarenotfinanciallyattractiveundercurrentmarket conditionsTheOldMuseumrenovationillustratesthisclearlyHighupfront costswereamajorbarrierTheseincludedlegalfeesforownershipclarification,

supportandincreasedvisitorengagement.

Still,long-termstewardshipremainsachallenge.Themuseumlacksadedicated managementauthoritywithaclearmandateQuestionsaboutwhowillmaintain, fund,andupgradethefacilityovertimearestillopenInprojectswithmultiple stakeholders,thisisacommonissue.Collectiveactionishardtoorganize,and public-privatemodelsoftenlackaccountability.Newgovernancetoolsmayhelp this.Long-termleaseagreements,independentassetmanagers,orjoint managementboardscouldprovidestabilityFortheOldMuseumandsimilar projects,sustainabilitydependsnotjustondesignorconstruction,butonclear andcommittedownershipaftertheribbon-cutting.

demonstratedmarkedlyhigherinternalratesofreturn(IRR)andshorter paybackperiods.Thismodelbypassesthehighfiscalburdenassociatedwith expropriation-basedapproaches,whichoftenincursubstantialcompensation costsandrequirelengthyadministrativeproceduresInstead,itleverages marketmechanismstoreallocatespatialandfunctionalentitlementsmore efficiently.However,tomainstreamthismodel,certainlegalandinstitutional challengesmustbeaddressed,includingpost-exchangeregistrationofproperty rights,managementofsharedspaces,andequitabledistributionofresulting benefitsamongstakeholders

Moreover,thefindingsreinforcethatstructuralrenovationshouldbeavoided whenfeasible,especiallyinprojectsfacinghighcapitalconstraintsoruncertain returnprospectsTheanalysisindicatesthatrenovationscenariosexcluding structuralmodificationfocusingsolelyonspatialoptimizationandcosmetic upgradesoutperformmoreinvasivestrategiesinbothcost-effectivenessand profitability.Whilestructurallyintensiverenovationsmaybenecessaryincases ofsafetyhazardsorfunctionalobsolescence,theyshouldbepursuedwith cautionandonlywhenbackedbystrongeconomicjustificationsandoperational projections

Overall,thisstudydemonstratesthatadaptivereuseguidedbyminimal interventionisnotonlyatheoreticallysoundconservationapproachbutalsoa practicalsolutionforsustainableurbanrenewalinChina’shistoricalurbancores Itprovidesareplicablemodelthatcanbeadaptedtosimilarmuseumand memorialrenovationprojectsnationwide,offeringablueprintfortransforming underutilizedhistoricalassetsintovibrantculturalandeconomicnodes.

6.2PolicyRecommendation:InstitutionalSupportforUsageRights ExchangeandZoningFlexibility

Tofacilitatethebroaderapplicationofadaptivereuseundertheminimal interventionframework,thestudyproposesseveralkeypolicy recommendationsaimedatgovernmentagencies,urbanplanners,andfinancial regulators:

6.2.1InstitutionalizetheUsageRightsExchangeModelinUrbanPlanning Frameworks.

Municipalgovernmentsshouldactivelypromoteandinstitutionalizetheusage rightsexchangemodelasaviabletoolforurbanrenewal,especiallyinareaswith ahighdensityofheritagebuildings.Thisincludesestablishinglegalframeworks thatclearlydefinethescope,procedures,andoversightmechanismsforsuch exchangesPilotprogramsshouldbeencouragedtotestmodelapplicability acrossdifferenturbancontexts,andsuccessfulexamplesshouldbedocumented andstandardizedforbroaderreplication.

6.2.2DevelopFiscalIncentivesforLow-InterventionRenovationPlans.

Localauthoritiesshouldintroducefiscaltoolssuchastaxcredits,low-interest loans,orrenovationsubsidiestoencourageminimalinterventionrenovations Projectsthatpreservetheoriginalarchitecturalelements,avoidmajorstructural modifications,anddemonstratepublicculturalbenefits(e.g.,educational programmingorpublicartinstallations)shouldbeprioritizedinpublicfunding schemesAdditionally,governmentsmayconsiderreducingadministrativefees orexpeditingapprovalprocessesforqualifyingminimal-interventionprojectsto furtherincentivizeparticipation.

6.2.3CreateFlexibleZoningandMixed-UsePolicyGuidelines.

Toincreasethefinancialviabilityofadaptivereuseprojects,zoningpoliciesmust beupdatedtoallowforgreaterflexibilityinusagetypes.Historicalmuseumscan bepermittedtointegratecomplementaryfunctionssuchascafes,bookshops,art galleries,co-workingspaces,oreventvenuesMixed-useguidelinesshouldbe developedtoensuretheseintegrationsdonotcompromisetheculturalvalueor spatiallogicoftheheritagesite.Suchflexibilityenhancesrevenuepotential withoutrequiringintrusivephysicalmodifications.

6.2.4StrengthenStakeholderCoordinationPlatforms.

Urbanrenewalprojectsinvolvingheritagebuildingsoftenfacechallengesrelated tofragmentedpropertyownershipandregulatoryambiguity.Municipalplanning bureausshouldestablishcross-sectoralcoordinationplatformsthatbring togethergovernmentdepartments,privatedevelopers,conservationexperts, legaladvisors,andcommunityrepresentativesTheseplatformscanstreamline negotiations,mediateconflicts,andensuretransparencyinbenefit-sharing. Furthermore,professionalthird-partyevaluatorscanbeengagedtoassess cultural,social,andeconomicoutcomes,ensuringaccountability.

6.2.5EncourageIntegrationofHeritageConservationintoUrban RegenerationPolicy.

Culturalheritagepreservationshouldnotbeviewedasaconstrainton developmentbutratherasacorecomponentofurbanregenerationNational andprovincialplanningstrategiesshouldexplicitlyintegratethepreservationof city-centerhistoricalmuseumsintobroadereconomicdevelopmentgoals,such asculturaltourismpromotion,creativeindustryincubation,andgreen infrastructureplanningBydoingso,heritageassetscanberepositionedas activecontributorstosustainableurbangrowthratherthanstaticburdenson publicbudgets.

6.3PracticalRecommendations

Inadditiontopolicy-levelinterventions,practitionersandprojectdevelopers involvedintheadaptivereuseofhistoricalmuseumsshouldadoptasetof practicalstrategiestomaximizebotheconomicandculturaloutcomes:

6.3.1PrioritizeFunctionalOptimizationoverStructuralAlteration.

Projectteamsshouldbeginwithacomprehensivespaceaudittoassessthe functionalpotentialofexistingstructuresWherefeasible,buildinginteriors shouldbereorganizedthroughlightweightinterventionsthatenhance usabilitysuchasreconfiguringcirculationroutes,improvinglightingand ventilation,andintroducingmodularinfrastructurewithoutdisturbingthe foundationalstructure.Thisapproachrespectsheritagepreservationmandates whileimprovingvisitorexperienceandoperationalefficiency

6.3.2AdoptMulti-ChannelRevenueStrategies.

Toimprovefinancialsustainability,adaptivereuseprojectsshoulddevelop diversifiedrevenuemodels.Beyondtraditionalincomestreamssuchasticketing andgiftshops,additionalrevenuecanbegeneratedthroughspaceleasing(eg, toeducationalinstitutionsorculturalstartups),brandedevents, heritage-themedmerchandising,anddigitalexperiences(e.g.,virtualtours, onlineexhibitions).Thesestrategiescanoffsetmaintenancecostsandenable projectstoachievelong-termfinancialindependence

6.3.3LeverageCulturalProgrammingforPublicEngagement.

Preservedhistoricalsitesmustactivelyengagethepublictoremainrelevant. Projectoperatorsshouldorganizeregularculturalprogramming,including communityworkshops,seasonalfestivals,artistresidencies,andschool partnershipsSuchinitiativesnotonlydrivevisitortrafficbutalsoreinforcethe socialmissionofheritagesitesasinclusivepublicspaces.Specialattention

shouldbepaidtocuratingprogramsthatreflectlocalhistoryandidentity, strengtheningtheemotionalconnectionbetweenthesiteanditssurrounding community.

6.3.4EmbraceDigitalToolsforMonitoringandAdaptability. Tosupportongoingoptimization,projectteamsshouldincorporatedigital toolssuchasBuildingInformationModeling(BIM),InternetofThings(IoT) sensors,anddatadashboardstomonitorstructuralperformance,energy consumption,anduserbehaviorThesetoolsprovidereal-timefeedbackthatcan informmaintenancestrategies,exhibitplacement,andspacereconfiguration. Moreover,digitalplatformscanhelpattractyoungeraudiencesandsupport hybridexperiences(physicalandvirtual),expandingthemuseum’sreach.

6.3.5AddressEquityandInclusivityinSiteReuse. Whileeconomicviabilityisacentralconcern,adaptivereuseprojectsmustalso ensuresocialequity.Planningshouldincludeprovisionsforuniversal accessibility(e.g.,ramps,elevators,multilingualsignage),affordableaccess(e.g., freeentrydays,studentdiscounts),andinclusiveprogrammingthatreflects diverseculturalnarrativesByembeddinginclusivityintoprojectdesign, historicalmuseumscanbecomeactiveagentsinpromotingcultural democratizationandcommunitywell-being.

Bibliography

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2Chen,T(2021)CulturalHeritagePreservationandUrbanDevelopment Beijing:ChinaArchitecture&BuildingPress.

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6.Liu,B.(2016).PreservationandAdaptiveReuseofIndustrialHeritage.Beijing: ChinaArchitecture&BuildingPress

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8.Wang,X.(2017).PreservationofHistoricalBuildingsinUrbanRenewal. UrbanPlanning,41(3),56-62.

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10.Wu,L.(2001).IntroductiontoHumanSettlementEnvironmentScience. Beijing:ChinaArchitecture&BuildingPress.

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