Development Opportunities at CEME Conceptual Design & Rationale for Commercial, Residential and Conferencing Facilities

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1 Development Opportunities at CEME Conceptual Design & Rationale for Commercial, Residential and Conferencing Facilities

2 CEME opened in 2003 with a focus on supporting regeneration and economic prosperity in the London Thames Gateway. Since opening CEME has become an industrial charity receiving no government subsidies, but having a massive impact in supporting hundreds of businesses and thousands of students through its Innovation Centre, skills, training and engineering research programmes. Introduction The CEME Innovation Centre has operated at capacity for more than four years and therefore is desperate to expand and meet needs of many entrepreneurs and young businesses, and there is currently a waiting list to join. Way back in 2003 it was envisaged that CEME would grow its campus to serve the needs of the business community and visitors. Today with over 70 businesses at CEME and thousands of visitors each day, there is a marvellous opportunity to develop a hotel and expand the conference facilities. Bill Williams C.E.O. CEME

3 > 600 Parking Spaces 15 minutes to Canary Wharf 15 minutes to London City Airport 10 minutes to M25 Bus terminus [route 174] to Harold Hill, via Dagenham Heathway underground station and 10 minutes from Rainham C2C Overground Station [22 minutes to London Fenchurch Street. Transport CEME Today The Centre for Engineering and Manufacturing Excellence [CEME] is a world-class research, skills, education and business campus in East London. CEME is unique in linking education to business, helping to improve the skills and prospects of local people enabling them to find employment within the manufacturing, engineering and technology sectors and increasing the economic contribution of local businesses. High Profile East London Location on 18 Acre Campus Superb lakeside environment with ultra-modern buildings Open 365 days a year with 24 hour security Short, medium and long-term lettable hi-tech office space, classrooms and workshops Meeting and conference rooms available for hire Scalable office configurations 120 Seat Auditorium with adjoining meeting rooms and large reception area Café Restaurant on site Crèche on site 750-2,500 visitors to the site daily Facilities The CEME Campus is ideally located on the A13, one of the main East London arterial roads, between Canary Wharf, London City Airport and the M25. Convenient to London and the South East & East of England, The CEME Campus forms part of the Beam Reach Development in The Thames Gateway. Within a superb lakeside environment the ultramodern buildings are located on a self-contained campus open 365 days with 24 hour security providing over 600 parking spaces, a bus terminal and train links. General Campus Visitors CEME has 750 to 2,500 visitors to its site each working day on average currently. This number is forecast to increase by at least 50% over the next months with the advent of Elutec [a University Technical College on the CEME campus. Business Occupiers There are 60 tenant companies on site ranging from small start-ups of 1-10 staff to blue chip organisations such as Toyota GB, British Gas and Ford Motor Company, occupying demised areas of high grade space that ranges from 185 sq ft to 16,000 sq ft. Skills & Education Occupiers There are several tenant colleges on site servicing the national and international student market with capacity for 800 students. There are ten private training providers on site permanently with many more visiting CEME to deliver training courses, using our facilities, on an ad hoc basis. The AA uses CEME for its roadside technician training and holds regular events at CEME in addition to its training course delivery. 60 tenant companies with lettable space ranging from 185 to 16,000 sq ft Conferencing statistics Conferencing delegate numbers Daily average Daily accommodation requirement Peak accommodation requirement 38, , , Statistics

4 Site Plan Scale: 1:1500

5 Three separate stages This prospectus sets out to define current shortfalls in provision and explore the opportunities that exist to extend and enhance the current on-site facilities here at CEME. We have identified three potential projects that would address these needs: The creation of additional office workspaces, expanding the current capacity of the Innovation centre. The introduction of a Hotel, to address the significant demand from current partners and potential customers to deliver residential training courses. The expansion of the existing conference facilities. Evidence of demand outstripping the supply of start-up premises clearly shows that without a step change in the availability of new start up premises, the growth of micro businesses will continue to be choked and economic growth in the London Riverside redevelopment area will not be fully realised. The existing CEME Innovation Centre turns away between three and five requests per month for small offices [75, 150 & 225 sq ft]. Occupancy is currently at 97%. The creation of a new micro business-focussed Innovation Centre at CEME is an essential part of securing growth in the technology sector and maximising London Riverside s full potential to create jobs. Without this larger development, the opportunity to capitalise on the area s growing number of entrepreneurs will be lost. Innovation Centre Each project is envisaged as an entity in its own right, but also as part of an exciting overall strategy that would build to the creation of a conceptual design both that unifies and completes the existing complex. The base of the concept is a two storey office facility physically tying together the two main buildings on the site. Incorporating a transfer structure in the structural design of its roof, a platform is formed for an additional building over. At its centre, in line with the existing double height circulation street of the main building is to be formed a new Centre Entrance, at the confluence of the existing and newly proposed circulation networks. To meet the conferencing needs for the long term future, the existing conferencing facilities in the main building are to be laterally extended into this new base building. This will add a seat multi-purpose auditorium space at mezzanine level, with additional meeting facilities wrapped around and beneath it. Above all, constructed off the transfer structure of the base building, a 110 bedroom hotel facility is to be constructed over 2/3 storeys. This would immediately address the lack of on-site accommodation that has so far had a significant negative impact on CEME s attractiveness as a location to run residential courses. The combination of increased auditorium capacity and the inclusion of residential accommodation are seen as very strong contributory facilities that would mutually assure a sustainable and profitable revenue stream for many years to come. The conference business at CEME has a wider and more diverse customer base today than ever before. CEME is currently suffering from serious consideration as a venue for events of more than one day duration as a result of having no on-site accommodation. Furthermore this impacts on those organisations who have stated they would plan to run residential programmes / events here if CEME could offer on-site accommodation. CEME requires a Hotel to fulfil its ambition to grow the conference centre to host an increasing number of technical and business related seminars on site. The move to develop a hotel is driven by the desire to have more localised accommodation for visitors, and to be able to hold / host business meetings and industry events on the CEME campus. The new development of the Tesco Distribution centre has created demand for business accommodation and we have direct Tesco support for this development to proceed. Additionally, Ford have increased production on its adjacent Dagenham Diesel Centre of Excellence [DDC] and would also back the development of a hotel to support its business visitors. Hotel Projected Stats. after expansion Expanded capacity for the Innovation Centre service will mean 87 new technology businesses are attracted and/or retained for incubation at CEME. 12,700 square feet of net lettable commercial office accommodation will be created. 63 jobs would be created within the Micro Business accelerator itself, with an estimated 200 supply chain relationships created in the locality. 50 FTE jobs will be created for the project design and build phases alone. There is no other large, purpose built auditorium that can accommodate 500 delegates in East London or West Essex beyond ExCel. The expanded conference facilities would provide between 4% and 60% of all hotel residents, and double the revenue of the conference centre upon opening. The Hotel accommodation would reverse the substantial element of turn-away bookings for the Conference Centre, as these have been for large [residential] conferences for 350 delegates or more. According to MIA, CCE and BMIE the demand for large residential conferences has grown in the last two years by an average of 19.3%. CEME Conference Centre is an ultra-modern events and meetings venue strategically located in Havering covering a wide demographic from Central and East London through the Thames Gateway and into Essex. The estimated value of turn-away bookings for large conferences that CEME could not accommodate in 2013 was over 75,000 on an enquiry basis only. Most large residential conference business is placed through agencies with the average daily day delegate rate being 57.00, the average residential rate being Just hosting one large residential and one large non-residential conference each month, annual revenue in a new auditorium alone would exceed 1m per annum. Conferencing

6 Exploded View Showing Elemental Opportunities

7 Innovation Centre Expansion At the confluence of the circulation streets, a new centre entrance is intended. A new linking two storey office building is planned; forming the final side of what is currently an open courtyard. The accommodation planned allows for a flexible arrangement of small and medium size units, spread over two storeys, principally arranged along a central circulation spine that connects the existing Innovation Centre directly into the double height circulation street of the main building. An annex is planned, running parallel, creating an additional double height circulation street again linking directly into the existing building. All office units are designed to take advantage of natural daylight and ventilation opportunities, the layout designed to allow maximum flexibility of unit sizes, with ultimate configuration being driven by demand. At the confluence of the new and existing circulation streets is planned a new Centre Entrance, creating a new double height central arrival point for the Complex with a strong external identity. This conceptual design can be envisaged as an independent building in its own right, or as a base or building block facilitating a platform off which to construct a Hotel offer above. A new linking two storey office building is planned, forming the final side of the open courtyard. CEME Micro Business Accelerator Proposed Conceptual Design for Increased Office Space All offices are designed to take advantage of natural daylight and ventilation opportunities.

8 Project 1 The Innovation Centre Extension Opportunity To maintain the momentum that we have generated in support of small businesses in our Innovation Centre, we propose that we expand capacity and create more Innovation Centre workspace with a focus on the small office end of the market based on the evidence we have encountered first-hand in terms of customer needs and demands. In essence, this demand for 75, 150 and 225 square foot offices will cater for businesses with one to three members of staff which is typical of a home-based company looking to take its first step into a commercial office environment. These early stage businesses need to be supplied with the right opportunity to expand and CEME is committed to facilitating this growth within London. It is proposed that CEME s new Innovation Centre Extension will take the form of a Micro Business Accelerator [MBA] - smaller units on affordable and flexible terms for start-up and early stage businesses. These businesses and their entrepreneurial cultures will be nurtured and fostered by CEME with the aim of enabling accelerated growth that adds value to the local economy by creating wealth and jobs in the business itself as well as its supply chain. Facts gross floor area : net floor area: building foot print: 42 no. 75 sq. ft. units 42 no. 150 sq. ft. units 14 no. 225 sq. ft. units 1,792 sq.m 1,180 sq.m 1,001 sq.m 9,292 sq.ft. 12,709 sq.ft. 10,774 sq.ft. Timing CEME envisages commencing the design and build process by June 2014 Terms CEME is seeking partners for public and private investment to support the development of this phase of the campus development. Potential partners are invited to contact CEME to discuss this opportunity in more detail.

9 Hotel Development Using the transfer structure that is incorporated into the design of the office block below, a Hotel offer is envisaged being built off this platform. Based on two wings of double sided bedrooms along a central spine, two full floors and a part third would generate 110 rooms, based on a standard twin room with individual en-suite facilities, area of room being 22sq.m. The conceptual design is flexible and can accommodate more or less rooms as the final brief will dictate. Hotel reception/management is envisaged in a central position at the second floor level, with direct access from the new Entrance below via lifts and escalators. An allowance has been made for some back of house facilities, the ultimate extent and distribution is to be agreed in association with the Hotel Operator. Catering facilities are also envisaged either as part of the complex as a whole, the Hotel, or by a third party. Exact brief and location is to be agreed. The hotel is to bridge over the office block and other accommodation below. The hotel is constructed off a platform created by a transfer structure beneath. CEME Hotel Development Proposed Conceptual Design for 110 Bedroom Hotel Rapid direct access to the second floor Hotel Reception via escalators.

10 Project 2 The Hotel Development Opportunity CEME comprises a variety of office, industrial, education, training, technology and research-based tenants. As an integral part of the development, the site proposed for the hotel will occupy a prominent Gateway position at the centre of the campus, immediately adjacent to the A13 and CEME Main Reception. Outline planning permission has previously been granted for the development of an 80 bedroom hotel at CEME. With a continuing positive training outlook for the hospitality sector, comparative low levels of competition and the development of further commercial space in the vicinity, it is considered that a budget/limited service hotel would be well suited to the CEME campus location. Planning With the benefit of an existing outline consent for hotel use as detailed above, it is CEME s intention to submit a detailed planning application in conjunction with a named operator as soon as possible. Facts gross floor area : net floor area: building foot print: 3,394 sq.m 2,796 sq.m 1,209 sq.m 36,537 sq.ft. 30,101 sq.ft. 13,013 sq.ft. 110 no. twin bedrooms including en-suite [22 sq. m.] Timing The site can be made available for development upon the grant of detailed planning consent following completion. Terms CEME is looking to dispose of the site subject to the grant of a detailed planning consent for hotel use for which Offers are invited. All images in this brochure are purely indicative. The design and fit-out will be subject to negotiation.

11 Conference Centre Extension seat auditorium as an extension to the existing mezzanine deck. By infilling the space between the end of the existing main building and further extending the Innovation Centre Expansion building, additional conference facilities can be accommodated. Central to this would be a new seat multi-purpose auditorium space, to be located as an extension to the existing first floor mezzanine deck area, extending laterally into the end of the new link building. Additional meeting rooms and conference support spaces would be wrapped around and beneath the new auditorium. Rapid access is to be facilitated by a new escalator that would link the newly created entrance space to this upper mezzanine level, within a new double height glass roofed circulation street that would sit perpendicular to the main buildings existing street, in between the end of the existing building and the new link building proposed. Enhanced catering facilities are also being considered as part of this extension to the conference facility. Direct access via escalator from the new Centre Entrance. CEME Auditorium & Conferencing Proposed Conceptual Design for Conferencing Facilities The hotel bridges over the new conference facilities.

12 Project 3 Conference Centre Expansion Opportunity Although the Centre has seen rapid growth of over 45% in the past two years, a substantial element of turn-away bookings has been for large [residential] conferences for 350 delegates or more. The present capacity of cannot meet the requirements for large [inter]national conferences and exhibitions. With more businesses based on the campus and more visitors, in part thanks to the Hotel Development and the Innovation Centre expansion proposed, CEME will require an increased conference centre footprint. An additional seat auditorium would drive business to the Hotel, and to the campus, and help meet conferencing needs for the long term, providing a sustainable and profitable revenue stream for many years to come as well as providing a key source of guests for the Hotel. Facts gross floor area : net floor area: building foot print: 350 seat auditorium 816 sq.m 602 sq.m 651 sq.m Exhibition space / meeting rooms 8,785 sq.ft. 6,479 sq.ft. 7,007 sq.ft. Timing CEME envisages commencing the Phase 3 design and build process from November 2014 Terms CEME is seeking partners for public and private investment to support the development of this phase of the campus development. Potential partners are invited to contact CEME to discuss this opportunity in more detail.

13 Conclusion CEME has emerged as one of the most prolific regeneration sites in the Thames Gateway area, with high levels of success and impact not just in the local community but in the wider area. The development of a research institute and UTC opening in 2014 are further examples of how we are growing to satisfy the needs of businesses in the London Thames Gateway. This fabulous development opportunity is a low risk and logical step in the next stage of growth and impact, that the CEME campus is having. To discuss these opportunities in more detail, or for more information contact: Tom Ashby Business Development Director tom.ashby@ceme.co.uk Steve Margett atelier-sm architects info@atelier-sm.co.uk Marsh Way Rainham RM13 8EU Studio 18, CEME Innovation Centre Rainham RM13 8EU

14 To discuss these opportunities in more detail, or for more information contact: Tom Ashby Business Development Director Marsh Way Rainham RM13 8EU Steve Margett atelier-sm architects Studio 18, CEME Innovation Centre Rainham RM13 8EU

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