case study: facility development in malaysia

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Facility Improvement Programme
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
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
1.
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.
2.
Focus is to make SIC commercially sustainable and independent by 2015
3.
Facilities Improvement Programme concluded in December 2010
4.
The Master Plan is currently underway with the Industrial Zone as Phase 1.
5.
Commercial feasibility assessment produced positive results.
6.
Strategy for the development identified is in line with the Malaysia Government Economic
Transformation Programme
FIA Institute Facility Improvement
Programme Methodology
Environmental
Module
Project
start
Vision
Plan
Commercial
Module
Master
Plan
Detailed
Design
Operational
Module
Client
funded
Approx 75% FIA Institute Grant / 25% Client
contribution
Public/Private
investment
Industrial Units
Industrial Units
•Site A – 45 units, each
5000 ft2 GFA
•Site B – 37 units, each
5000 ft2 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 m2 of discount designer
outlets
•Constructed over two phases
•Direct road frontage and visibility
Hotel Complex
Hotel Complex
•69,000 m2 site with 14,000 m2 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 m2 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
SIC Projects
Privately Funded
•
Nett revenue of up to 5.2 times
current income.
•
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).
•
Minimum returns on pure land
lease will contribute up to an
additional 4.8 times current
profits.
•
Increased best practices for daily
operations leading to productive
outputs (qualitative and
quantitative).
•
Environmental sustainability
infused within all projects.
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