COMMERCIAL STRATEGY FRAMEWORKCAPTURING EXPENDITUREDEFININGGOVERNMENT’SMANDATEBUSINESSDRIVERSCOMMERCIALDRIVERSDEFINETERTIARYCENTRE$500MIL P.A.•RETAIN EXPENDITURE•MINIMISE ESCAPE EXPENDITURENEWBUSINESSREALITYHUMANRESOURCESFOCUSCAPTURINGEXPENDITURECOMMERCIALELEMENTSMONOPOLY•DESTINATIONAL MODEL•CAPTURE UNIQUE MARKETNEW BUSINESS REALITY•MAXIMISE RETAIL OPPORTUNITIESNET REVENUENET REVENUE TARGET RETURNEFFICIENCYPARTNERSHIPSDE-RISKINGCAPITALISEINNOVATIONEFFICIENCY QUOTAS ON OPERATIONSUNIVERSITIES, PRIVATE SECTOR, NFP, OTHERFUTURE PROOF GOVERNMENT’SINVESTMENTCAPITALISE ON GOVERNMENT’SINVESTMENTCENTRE OF INNOVATION AND EXCELLENCEMULTIPLY INVESTMENTCOMMERCIAL ELEMENTS•LINKS TO PLACE MAKING•LINKS TO HR STRATEGY•DELIVERS ON GOVERNMENT’S MANDATECREATE TERTIARY CENTREDELIVERING NEW ELEMENTSMARKETWHO?INVESTMENT PLATFORMATTRACT $ FROM PRIVATE, C/WEALTH, NFPELEMENTSWHAT?HUMAN RESOURCES FOCUSAREA REQUIREMENTHOW MUCH?WORKFORCE / HRSTRATEGY• REDUCE STAFF TURNOVER•ATTRACT GOOD STAFF•RETAIN STAFFCOMMERCIAL PRINCIPLESCOSTHOW?LEVEL OF CAPITAL INVESTMENTPLACE MAKING•AMENITYON / OFF CAMPUSWHERE?•ACCOMMODATION•SAFETYINVESTMENTBY WHOM?FAMILIARISATION•FACILITIESHEALTH’S ROLESTRATEGY INFORMING THE MASTER PLAN•LEARNING CENTRE•EMPLOYMENT FEEDER36LYELL McEWIN HEALTH PRECINCT - MASTER PLAN
LYELL McEWIN PRECINCT – TERTIARY PRECINCT - COMMERCIAL ELEMENTSThe following matrix provides a summary <strong>of</strong> future commercial elements which are identified as part <strong>of</strong> the Tertiary <strong>Precinct</strong> at LMHMARKET(WHO)WHOELEMENT(WHAT)DESCRIPTIONMASTER PLAN DRIVERS – COMMERCIALCOMMERCIAL PRINCIPLES INVESTMENT SCOPE PRIVATE – PUBLIC INVESTMENTON CAMPUS – OFF CAMPUSMASTER PLAN CONTEXTSA HEALTH ROLEStudentsStaffVisitorsResidentsPr<strong>of</strong>essionalsRETAILFood and BeverageNon-Food SpecialtiesConvenience (Mini-Mart)SUPPORTCafé Restaurantx 2-3 = 500sqmSpecialties –10x50-100sqm=750sqmSupermarketFull Line –2,000-2,500sqmTotal Retail3,000-4,000sqmEssential Place MakingAccess- Security (High)Extended Hours <strong>of</strong> TradingExposureCritical MassMajor Captured ExpenditureExpansion PotentialScope <strong>of</strong> 1 Dominant Centreand Localised NodesInvestment Quantum - 4,000/sqm at $1,500/sqm = $6millionThird party tenants on commercial lease arrangements responsiblefor fitout - 4,000sqm at $1,000-$2,000/sqm - $6-8millionPotential Involvement <strong>of</strong> Volunteer Program in non-specialised retail(café, florist, etc)Brand Tenants in specialist or licences areas (Pharmacy, travel agent,hairdresser, newsagent, banks etc)Requires centre management once scale is achievedPOTENTIAL REVENUE STREAM – FREEHOLD OWNERSHIP(LEASES)BUSINESS OPERATIONS (NET PROFIT)EITHERTied to Land OwnershipTraditional Tenure Principles (Freehold)Private Appetite if Off CampusOPTIONSA. Central to Hospital EpicentreB. Main Street (0n or Off Campus – orboth)C. Growth NodesFacilitatorInvestor - OwnerJV PartnerOperatorVisitorsShort Term –ResidentsCountry basedFamiliesSHORT TERMACCOMMODATIONHotel – Motel (short stay)Serviced Apartments(to 2weeks)SUPPORTHotel – MotelStage 1 - Say 30rooms + facilities= 600-800sqmHotel - MotelRequires Scale – say 30+roomsSpecialist BusinessOperationsServiced Apartments30 room hotel – motel – 700sqm @3,000/sqm - $2.1millionTypically third party developer, investor and specialist operator –existing structure and networkAbility to expand 100%Linked to Oncology CentreLinked to Education Facilities - VisitorsPRIVATE INVESTMENTANDOPERATIONHotel – MotelOff Campus – NON-COREAdjoining, Salisbury, EEC?Shuttle Bus?Facilitator20 residential apartments - @$250,000 - $5millionStudents –ResidentsPatient’sFamiliesLONG TERMACCOMMODATIONLong Term – Annual TenureSUPPORTResidential10x1 bed and 10x2bed = 20apartments40-70sqm =1,100sqmHousingStudent AccommodationRequires existence <strong>of</strong>Education/Training ElementInternational WorkforceLink ModelStudent Housing Developer/OperatorNot-for-pr<strong>of</strong>it Housing Provider – PartnershipLow Cost Rental – viability subsidy requiredAbility to Expand 100%Linked to Education Facilities – PermanentLink to Core Staff (nursing) – PermanentLinked to ParentsLinks to Indigenous Housing – Specialist RequirementsTWO OPTIONSPRIVATE (Freehold Ownership)PUBLIC – NGO PARTNERSHIPOPTIONSA. Private Provider – Off Campus –Mixed UseB. Public/NGO Partnership –Leasehold Tenure – On Campus orPartner Land – designated precinctFacilitatorJV Partner?Council Partnership RoleStudentsStaffPr<strong>of</strong>essionalsTERTIARY EDUCATION ANDTRAININGR&D, SIMULATION WET LABSSHARED EDUCATION SPACEInstitutional PartnershipFacility <strong>of</strong> MedicineCOREShort Term1-2 x 400sqmProgram AreasLonger TermMedi-Centre <strong>of</strong>Excellence4 x 1,000Strategic direction tointegrate into Core SA<strong>Health</strong> site initiallySpace for <strong>Health</strong> ForumStage 2 form to requiremultiple and specialisedfacilitiesNeeds supportinfrastructure and servicesCar Parking, Retail ActivityNode (Place),Accommodation cope <strong>of</strong> 1Dominant Centre andLocalised NodesShort term – lease <strong>of</strong> core space to University or shared servicesplatform (ie lecture theatre) – need for <strong>of</strong>fice type space linked toamenitiesMultiple Universities interestedLonger term – major Uni- Commonwealth Government capitalfunding ($20-30million) to expand Centre <strong>of</strong> Excellence – 3-5 yearstime80-100+ Student CapacityMajor Space UserCritical Element <strong>of</strong> Tertiary CentreInclude Function Centre / Convention Centre2-3 year lead timeframe – 100% GROWTH FACTOR IN LONGERTERMPUBLIC (short term)UNIVERSITY – COMMONWEALTH (longerterm)OPTIONSA. Short Term – SA <strong>Health</strong> providedspace on commercial basisB. Major CentreDirection - Mixed Use StructureFacilitatorInvestor - OwnerJV PartnerCouncil Partnership RoleLYELL McEWIN HEALTH PRECINCT - MASTER PLAN 37
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