Singapore Sports Council confirms end of Changi Motorsports project

The Singapore Sports Council (SSC) has indicated the end of plans for its ambitious Changi Motorsports Hu will not be realised, with its confirmation that it will not proceed with a re-tendering of the race-track project.

This follows the conclusion of an extensive international and local market sounding and Request for Information (RFI) exercise, as a result of which the SSC has advised that it is unable to proceed with the re-tender as it could not accede to certain conditions from potential investors.

These include requests for flexibility of lease terms and land use, as well as tax concessions.

SSC Chief Executive Lim Teck Yin said the land take and proposed use under the project "do not justify an operating model that involves significant government subsidies or concessions".

The council had received seven proposals from six consortia, the majority of which were motor-sports related.

Lim stated "the SSC has decided not to proceed with the re-tender as potential investors had indicated significant combined conditions for the project to be commercially viable, which we cannot accede to.

"The key requirements from potential investors include requests for flexibility of lease terms and land use as well as tax concessions. For example, with regard to flexibility of lease terms, there were requests for extensions of duration and pricing below valuation.

"Taking into consideration these requests and potential outcomes, we need to balance the costs and benefits. The land take and proposed use under this project do not justify an operating model that involves significant government subsidies or concessions. After careful consideration and in consultation with other government agencies, we have decided not to proceed with the re-tender."

Proposals for the motorsport hub included a world motorsport governing body FIA grade 2 or 3 circuit, an international standard karting circuit, a racing academy, a dragstrip, and bonded warehousing. Non motorsports-related ideas included a theme park and watersports marina. Common ideas cutting across the majority of the proposals include retail and F&B.

SSC admitted that the upcoming track in neighbouring Iskandar had impacted the potential bidders who had to redo their sums but it added that also presents an opportunity to develop the Singapore motorsports industry.

Lim added "if you look at the synergies between Singapore and Iskandar, the motor sports enthusiast can look forward to the kind of synergies that we hope to derive given our current conditions and constraints, and how we turn this into strengths."

In 2010, SG Changi won the bid to build the original Changi Motorsports Hub on the 41 hectare site.

However, that contract was terminated a year later after the company ran into financial troubles.

The site will now be handed back to the Singapore Government with Lim concluding "while we work towards handing the site back to the authorities, SSC is also actively working with the relevant agencies on possible interim uses for the site for motorsports-related activities, such as karting for the community."

22nd September 2012 - GRAND PRIX BOOSTS SINGAPORE TOURISM

27th July 2012 - SINGAPORE GOVERNMENT TO MARKET TEST USES FOR CHANGI MOTORSPORT SITE

23rd September 2011 - SINGAPORE GRAND PRIX SELLS OUT

30th October 2009 - INAUGURAL ABU DHABI GRAND PRIX SELLS OUT

29th July 2009 - BIDS SOUGHT FOR SINGAPORE MOTORSPORTS AND LEISURE HUB

19th January 2009 - SINGAPORE F1 CIRCUIT TO CHANGE 

Asking a small favour
We hope that you value the news that we publish so while you're here can we ask for your support?

The news we publish at www.ausleisure.com.au is independent, credible (we hope) and free for you to access, with no pay walls and no annoying pop-up ads.

However, as an independent publisher, can we ask for you to support us by subscribing to the printed Australasian Leisure Management magazine - if you don't already do so.

Published bi-monthly since 1997, the printed Australasian Leisure Management differs from this website in that it publishes longer, in-depth and analytical features covering aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues management.

Subscriptions cost just $90 a year.

Click here to subscribe.