By Patwant Singh | Posted: 16 May 2012 2036 hrs
SINGAPORE: The construction of the Changi Motorsports Hub may finally be called off, after the final termination papers were signed on Wednesday.
The Singapore Sports Council (SSC) will take back possession of the land from the SG Changi consortium on Thursday.
SG Changi could not complete the Changi Motorsports Hub as the company had run into various financial difficulties.
The next step for SSC will be to see if there are any parties interested in taking up the project.
The Request for Information phase will last from August up to the end of 2012.
A decision on whether a re-tender will be called will be made in the third quarter of 2013, SSC elaborated.
SSC CEO Lim Teck Yin said there could have been more stringent criteria in place when it came to examining the financial strengths and organisational ability of the bidding consortiums.
“We could have gone further to require a level of assurance about being able to finance the entire project, maybe through the likes of a bankers guarantee for the entire project, and not just the ability to buy the land,” he said.
“That could have benefitted the project, since we were also trying to achieve other national objectives, not least trying to get the hub up on time and ready.”
“But those are the lessons learnt,” he added.
SSC said it welcomes both local and overseas investors and is also keeping its options open to both motorsports- and non-motorsports-related concepts.
In informal sessions, it has already met five or six interested parties and will be engaging the services of a consultancy to help it with the feedback process.
In order to revive the Changi Motorsport Hub Project, you need to find people in the industry with common interests, especially car manufacturers and those involved in racing motorsports, to only allow access to rental sports cars from sponsors, to join a members club, and allow those who are foreigners to participate by paying a higher fee, I believe this project can breakeven within 2 years, if we can find the necessary participants who can contribute, and make Singapore a motorsports hub for everyone who is interested.
Call for an auction of retail space giving best frontage and prominence to those car manufacturers who can pay the highest price, to showcase their latest technologies for racing motorsport, to allow members and foreigners to lease the cars for training and leisure, this will give a wide exposure to manufacturers, and allow customers to test their racing technologies, in-directly boosting their car sales. By targeting car manufacturers, there is no need to worry about high maintenance, with a regular income everything can be easily managed, to give everyone the best of all worlds, and the projection of recovery of ROI can be made within 2 years.
Sources of Income;
Real Estate Rental
Rental of cars
Others like workshops, mechanics and modifications
Armed with a feasibility study, the design and planning stage should allocated the most space for the highest income based on the above, as long as you are able to get more than 30% commitment from your sponsors, you can kick off your project with minimum capital with a 50/50 division between rental and ticket sales/membership fees.
– Contributed by Oogle.