It is an instrument to promote the development of large areas. The value capture logic is based on in-kind (usually land) contributions by all landowners in the area to an entity that in turn uses (sells) these contributions to self-finance investment in urban infrastructure and services that then increases the value of all properties in the area. Although the plot size of each original landowner is readjusted into a different size and shape, the overall value of each plot should be higher due to the public investments. In other words, the participants expect that the appreciation resulting from urbanization will more than compensate for the smaller size of each readjusted plot.
