PROFESSIONAL MOTORSPORT WORLD EXPO 2013 WEDNESDAY 13TH NOVEMBER 2013 HOW TO DESIGN & CONSTRUCT A COMMERCIALLY VIABLE KARTING VENUE Ben Willshire www.apexcircuitdesign.com PMW EXPO 2013 APEX CIRCUIT DESIGN LTD. “I wouldn’t be in Formula 1 if I hadn't come through this series [Formula Kart Stars]” Lewis Hamilton IMPORTANCE OF KARTING PMW EXPO 2013 APEX CIRCUIT DESIGN LTD. PRIMRING KART CIRCUIT| RUSSIA DUBAI KARTDROME| UAE BAHRAIN INTERNATIONAL KART CIRCUIT| BAHRAIN AL FORSAN RESORT ABU DHABI|UAE APEX CIRCUIT DESIGN - RECENT KARTING EXPERIENCE PMW EXPO 2013 APEX CIRCUIT DESIGN LTD. WHY A KARTING CIRCUIT? Social Opportunity Why a Kart Circuit? Direct kart Talent circuit Development benefits Wider Commercial destination Opportunity benefits WHY KARTING? PMW EXPO 2013 APEX CIRCUIT DESIGN LTD. STEP 1: DEFINE A BRIEF FOR YOUR REVENUE GENERATING KART CIRCUIT •Land area of around 50,000sqm - 80,000sqm for a 1200m CIK Grade B or A karting circuit & paddock •A 2 storey 1000sqm building will be adequate for workshops, kart storage, changing facilities, briefing rooms, viewing areas and race control functions. •Close enough to other leisure activities or populations to attract 365 day footfall •Gentle changes in topography (+/- 5m) across the site to design an exciting circuit •Ideal to have road frontage exposure to maximise the commercial opportunities •Provide easy access from a good road network •The track should be Flexible for all users whilst conforming to CIK guidelines. This means including layouts for adults, children and competition racers. TYPICAL BRIEF FOR A REVENUE GENERATING KART CIRCUIT PMW EXPO 2013 APEX CIRCUIT DESIGN LTD. STEP 1: DEFINE A BRIEF - WHAT TYPE OF KART CIRCUIT? OVERVIEW OF CIK CIRCUIT GRADES PMW EXPO 2013 APEX CIRCUIT DESIGN LTD. STEP 1: DEFINE A BRIEF – THINK ABOUT REVENUE GENERATION AROUND THE CIRCUIT High-Ropes-C ourse.gif REVENUE GENERATORS PMW EXPO 2013 APEX CIRCUIT DESIGN LTD. STEP 1: DEFINE A BRIEF – THINK ABOUT REVENUE GENERATION WITHIN THE CIRCUIT REVENUE GENERATORS PMW EXPO 2013 APEX CIRCUIT DESIGN LTD. STEP 2: PLAN YOUR ROUTE CLIENT BRIEFING TO APEX CLIENT, LOCAL ENGINEERING & ARCHITECTURAL TEAM TENDER LOCAL BUILDERS SITE VISIT & CONCEPT SKETCHES DETAILED DRAWINGS & SPECIFICATIONS COMMERCIAL STRESS TEST TRACK SIMULATIONS DETAILED DESIGN CONSTRUCTIONN DESIGNER REVIEW & COMMENTING DESINGER SUPPORT Work closely with a local team to combine motorsport expertise with local knowledge Planning your project = reduction in costs = drives commercial viability TYPICAL DESIGN PROCESS PMW EXPO 2013 APEX CIRCUIT DESIGN LTD. STEP 3: DESIGN - INITIAL CONCEPT DESIGNS CASE STUDY CONCEPT DESIGN - VIVA BAHRAIN KART CIRCUIT PMW EXPO 2013 APEX CIRCUIT DESIGN LTD. STEP 3: DESIGN – CONCEPT DESIGN TRACK SIMULATION Or perhaps drive the circuit before it is built? N KART CIRCUIT SIMULATION TOOLS PMW EXPO 2013 APEX CIRCUIT DESIGN LTD. PART 3: DESIGN - TESTING THE COMMERCIAL VIABILITY • Develop a concept plan for the track and surrounding land • Develop an Construction Cost estimate • Ascertain sale or lease values for the surrounding land • Develop a cash flow model to include revenue and operational costs • What is the likely Operational Capacity? • What can I earn from Circuit Hire Income? • What will my overheads be? • Staff Wages • Kart & Track Maintenance, Tyres, Fuel • Calculate target WACC range • Calculate base case project IRR% and pay back period • Fine tune the design brief to reflect the financial model • Present investment opportunities to stakeholders COMMERCIAL VIABILITY PMW EXPO 2013 APEX CIRCUIT DESIGN LTD. STEP 3: DESIGN – DETAILED DESIGN & TENDER DETAILED DESIGN RT CIRCUIT PMW EXPO 2013 APEX CIRCUIT DESIGN LTD. STEP 3: CONSTRUCTION MONITORING & CIK INSPECTIONS CASE STUDY - VIVA CONSTRUCTION MONITORING BAHRAIN KART CIRCUIT PMW EXPO 2013 APEX CIRCUIT DESIGN LTD. KEY POINTS TO REMEMBER: •Plan, Plan and Plan – Define a Brief & Design Process •Conduct a Financial Feasibility Study early into the design process to avoid abortive design work •Commit to detailed design once a Robust Commercial model is in place and identify a target IRR •Gain input from experienced operational staff on how to maximise revenue •Design a Flexible & Safe Circuit •Use Simulators to your advantage to avoid remedial works on site •Ensure a collaboration between an expert design team and experienced local engineers and builders •HAVE FUN! CASE STUDY - VIVA BAHRAIN KART CIRCUIT SUMMARY PMW EXPO 2013 APEX CIRCUIT DESIGN LTD. THANK YOU www.apexcircuitdesign.com PMW EXPO 2013 APEX CIRCUIT DESIGN LTD.
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