Transcript case study: facility development in malaysia
Facility Improvement Programme
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History of Sepang International Circuit
The state-of-the-art circuit was launched in March 1999 by the former Prime Minister Tun Dr. Mahathir Mohamad.
Designed by renowned F1 track designer Hermann Tilke.
The First modern circuit built in SE Asia and became a benchmark to other new cicruits such as Shanghai, Bahrain and Turkey.
With a length of 5.543 km, the track features 15 turns and 8 straights with access speeds of more than 300km/h. The track allows ample opportunities for overtaking, to ensure a race full of suspense and thrill.
The track can accommodate up to 130,000 spectators at a time. The Main Grandstands and 18 air-conditioned Corporate Suites have a capacity of 32,000. While Grandstands K and F can fill up to 18,500 spectators facing, turns 1 and 7 respectively.
The circuit first hosted Formula One World Championship and Motorcycle World Championship in 1999.
What is it?
Facility Improvement Programme
• Is a grant funding scheme of up to €200,000 or around 75% per project for professional fees to establish a project Master Plan • Provides project grant funding to the FIA ASN or project it supports • The grant is provided as services by the Facilities Advisory Partner • Is conditional on a project contributing 25% to the professional fees • Is awarded annually to projects that successfully apply and qualify
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Consultant team comprises of:
Apex Circuit Design Ltd (The FIA Institute Facilities Advisory Partner)
Motorsport design, master planning design and operations consultancy
Ridge and Partners LLP
Cost consultancy and architectural design services
Scott Wilson PLC
Civil and Environmental engineering design
KPMG
Business services consultancy
Sustainable Hospitality Group
Sustainable operations consultancy
The FIP Master Plan Report provides great credibility in attracting serious interest for investment opportunities and Foreign Direct Investment.
Objective and status of FIP
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In line with SIC’s Vision and Mission statement: Position SIC as a multi-faceted venue and one of the country’s and regional top destination for motorsports and entertainment.
Focus is to make SIC commercially sustainable and independent by 2015 Facilities Improvement Programme concluded in December 2010 The Master Plan is currently underway with the Industrial Zone as Phase 1.
Commercial feasibility assessment produced positive results.
Strategy for the development identified is in line with the Malaysia Government Economic Transformation Programme
Project start Client funded
FIA Institute Facility Improvement Programme Methodology
Environmental Module Vision Plan Commercial Module Master Plan Operational Module Approx 75% FIA Institute Grant / 25% Client contribution Detailed Design Public/Private investment
Industrial Units
Industrial Units
• Site A – 45 units, each 5000 ft 2 GFA • Site B – 37 units, each 5000 ft 2 GFA • Constructed and leased by SIC
Main Circuit Refurbishment and Upgrades
5.542 km International Circuit
• Primary Paddock pit building roof repair and team building construction • Secondary paddock upgrades • Main circuit floodlighting
Driver Training Facility
Driver training facility
•Tests and training disciplines include: • Emergency stop test • Slalom test • Low friction bend • Friction circle
Kart Circuit
1.2 km International kart circuit
•Upgraded circuit, two 600m permutations for use simultaneously •Upgraded circuit buildings •Enlarged paddock area for use during AAM sanctioned events
Factory Outlet Centre
Factory Outlet Centre (FOC)
•36,000 m 2 of discount designer outlets •Constructed over two phases •Direct road frontage and visibility
Hotel Complex
Hotel Complex
•69,000 m 2 site with 14,000 m 2 GFA •200 rooms •Pool and conference facilities •Highest points of the site •Excellent road frontage and visibility
Education Facilities
Tertiary/Vocational Educational Facilities
•Technical and non-technical subjects •Access to the main circuit and driver training facility •Vocational and Tertiary campus •Close to on-site business
Sport Centre
Sports Centre
•Golf driving range, swimming pool, fitness suites and sports halls •Several attractions – Low land cost •Internal air conditioned links to plaza and educational facility
Country Club
Country club\Exclusive Country Club
•5,500 m 2 GFA luxury club house •Circuit views from circuit side rooms •Catering and conferencing facilities •Hotel type rooms •Outdoor infinity pool and whirlpool •Day spa/sauna/beauty parlor/crèche
Plaza
Plaza
•Links circuit plaza to hotel and FOC •Creates a ‘sense of arrival’ •Central hub of entertainment •Merchandising, gaming arcades, automotive demonstrations, concerts and exhibitions
National Vehicle Research Centre
National vehicle test/research centre
•National automotive centre of excellence for safety and research •Business park with main circuit and its paddock facilities; • Vehicle crash testing • Engine testing • Aerodynamic studies • Materials testing • Dynamic vehicle testing
Upgraded Road Network
Road Network
•Upgraded highway junctions running adjacent to the site on its North and West borders •Site road network upgrades to allow easy traversal between facilities for visitors, staff, race teams and lease holders •Proposed one way system for major events
Motocross
Motocross
•Relocation of existing motocross facility •Developed paddock areas, parking and welcome centre
THE MASTER PLAN
Commercial Returns of Combined Projects
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SIC Projects
Nett revenue of up to 5.2 times current income.
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Privately Funded
Alternative revenue models will be determined within the nature of each investor.
• Returns on Investment as low as 2.1 years to a maximum of 4 years (conservative).
• Increased best practices for daily operations leading to productive outputs (qualitative and quantitative).
• Environmental sustainability infused within all projects.
• Minimum returns on pure land lease will contribute up to an additional 4.8 times current profits.