It takes a long time for urban regeneration projects to strengthen the self-sufficiency of declining areas and achieve their desired effects, so implementing such projects together with the private sector can have the benefits of reducing financial burdens and ensuring project sustainability. Given that urban regeneration projects thus require the involvement of private capital, this study analyzed the relevant factors. After an analysis of previous studies, this study used two Delphi surveys to identify the structure and factors for AHP analysis, and then conducted said AHP analysis to find the decision-making factors determining private capital participation in urban regeneration projects.
The analysis demonstrates that, among the major categories, the business feasibility index is highly important, and among the mid-level sub-categories, “business risk aversion- investment expansion plans” is weighted heavily. Among the detailed factors, prior to the research we anticipated that profitability would be the most important factor for the participation of private capital in urban regeneration projects, but our analysis showed that business risk aversion factors, namely land acquisition, location, and local governmental participation in relation to licensing and permits, were the most important detailed factors. This appears to demonstrate that factors that help avert business risks while securing an appropriate rate of return are judged to be more important than high profitability for urban regeneration projects. In addition, heavily weighted detailed factors included the expansion of floor area ratios and usage conversion (under the category of investment expansion plans), and REITs (under the category of the capital participation method), which were analyzed to be structural factors that can induce stable private capital participation with an appropriate rate of return.