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Integrated Project Final Report - Group 11

The document provides details about redevelopment options for a vacant commercial property in Coventry, UK that was formerly an IKEA store. It discusses 3 potential redevelopment options: fully refurbishing the existing building as a NHS facility, partially demolishing and refurbishing it for student accommodation, and fully demolishing it to build a new car showroom. Floor plans and financial analyses are provided for each option. A SWOT analysis of the site and environmental impact considerations for the different redevelopment approaches are also summarized.

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0% found this document useful (0 votes)
60 views36 pages

Integrated Project Final Report - Group 11

The document provides details about redevelopment options for a vacant commercial property in Coventry, UK that was formerly an IKEA store. It discusses 3 potential redevelopment options: fully refurbishing the existing building as a NHS facility, partially demolishing and refurbishing it for student accommodation, and fully demolishing it to build a new car showroom. Floor plans and financial analyses are provided for each option. A SWOT analysis of the site and environmental impact considerations for the different redevelopment approaches are also summarized.

Uploaded by

john017797
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 36

7166EXQ -- INTEGRATED PROJECT MANAGEMENT

Group Project By

GROUP 11
HARIKA BESTHA RAMANABOYENA 13018160
JOHN MATHEW CYRIL JAMES 13889928
RAJASEKARNA
SAITEJA GOLI 14176511
RANJITH RAJENDRAN JOTHILAKSHMI 13926740

1
APPENDIX

1.1 Introduction 3
1.2 Site location 4
1.3 Project Dimensions 5
2.1 Environmental Impact 5
2.2 UXO Report 7
2.3 SWOT ANALYSIS 8
3 EVALUATION OF METHODS 11
3.1 FULL REFURBISHMENT - NHS 11
3.2 PESTEL ANALYSIS FOR NHS 12
3.3 FLOOR PLANS FOR NHS 14
3.4 PARTIAL DEMOLITION AND REFURBISHMENT - 17
STUDENT
ACCOMIDATION
3.5 PESTEL ANALYSIS FOR STUDENT ACCOMIDATION 17
3.6 FLOOR PLANS FOR STUDENT ACCOMIDATION 19
3.7 FULL DEMOLITION – CAR SHOWROOM 21
3.8 PESTEL ANALYSIS FOR CAR SHOWROOM 21
3.9 FLOOR PLANS FOR CAR SHOW ROOM 22
4 BCIS CALCULATIONS 24
4.1 OPTION 1 – NHS 24
4.2 OPTION 2 – STUDENT ACCOMIDATION 26
4.3 OPTION 3 – CAR SHOW ROOM 30
4.4 REVENUE GENERATION FOR THREE OPTIONS 31
5 CONCLUSION 33

2
1.1 INTRODUCTION

Corporation Street in Coventry has experienced numerous transformations since the


creation of commercial buildings in the mid-19th century, and the mixed-use buildings were
launched as a modern city structure in the 1990s. The structure has undergone various
alterations and is currently IKEA store. In the summertime of 2020, the Corporation Square
property—which had been an IKEA store—closed, signaling a turning point for the retail
behemoth and the city of Coventry. O'Hora Commercial Estates Ltd. has hired this
consultancy to do an in-depth study and assessment of the viability regarding the property's
renovation after realizing the possibility of this exceptional location.

After advising O'Hora Commercial Estates Ltd., on a portfolio of Leisure, mixed-use,


office, and retail buildings, Calthorpe Estates has decided to redevelop the building. Because
Corporation Street is a prominent commercial corridor with numerous stores, restaurants, and
other companies, O'Hora Commercial Estates Ltd., must provide the customer with a feasible
option for the long-term renovation of the property.

The team created numerous development proposals and trimmed them to three specific
recommendations for developing the site. This concept will be carefully and selectively
assessed for quality and cost-effectiveness using SWOT and PESTLE analysis, as well as
providing a client-beneficial cost and revenue analysis. The recommendations of team
members include the entire demolition of the existing structure and the construction of a new,
modern building, the partial demolition and remodeling of the building, and securing the
existing structure with simple refurbishment.

3
1.2 SITE LOCATION

IKEA is located in the city Centre of Coventry's Post Town. The building is situated
in city Centre, Coventry on a street that runs north to south. Many shops, restaurants, theatres,
parks and businesses are located on a street with convenient access to public transportation at
this location. Since the 2007, when the constructionof commercial buildings in city Centre, the
value of real estate in that region has growndramatically. The neighboring train station is about
12 minutes away on foot from cityCentre, adding to the building's advantage.

Site Corporation Street is situated in Coventry's Post Town, the city's Centre. The
structure is located on a north-south roadway in Coventry's city Centre. There are a lot of
stores, theatres, parks, eateries, and other enterprises situated on a street here that has easy
access to public transportation. The value of real estate in that area has increased significantly
since the 2007s, when work on commercial buildings on Corporation Street started. One
other benefit of the building is that it is only a 12- minute walk from Corporation Street to the
nearby train station.

(figure 1: Source google maps)

4
(figure 2 : Site Live Image)

1.3 PROJECT DIMENSIONS

The building is located at the coordinates, 52.4073 °N, 1.5167 °W, at 2 Croft Road,
Coventry (CV1 3AZ). The building located on Corporation Street in Coventry was originally
constructed as an IKEA store. However, in the summer of 2020, IKEA made the
unprecedented decision to close this particular city centre store. Subsequently, they sold the
property to a third-party buyer, marking the first instance of a major IKEA branch closure in
the UK.

2.1 ENVIRONMENTAL IMPACT

➢ Refurbishment has definite benefits in terms of time, money, influence on the


community, preventing building sprawl, repurposing existing infrastructure,
and safeguarding existing communities. Additionally, it might result in a
considerable short- and long-term decrease in the energy used by buildings.
➢ When only a portion of a structure is demolished, this is known as partial or
selective demolition. This lets you preserve some of the original character and
is especially popular in older homes if additional space isneeded.
➢ Starting at the top of the structure, demolition operations should be done
downward. It is not advisable to let disassembled materials build up to the
point that they jeopardize the structural integrity of any floor or support.

5
➢ Profitability is impacted by subpar material accounting. Low profitability is
the result of material theft caused by improper material storage on the job site.
Materials stored improperly on the site might cause damage or destruction,
which lowers profitability.
➢ Some studies claim that up to 50% of climate change is caused by
construction. It also affects air, water, and noise pollution, as well as landfills.

(figure 3: Source google)

6
2.2 UXO REPORT

➢ Examine and remove any potentially dangerous substances, gasses,


explosives, or combustible items. Check for the presence of asbestos or other
dangerous materials. The person or people in charge must sufficiently prepare
for the task before beginning with regard to the workers' health and safety.
➢ In the event that your project is classified as notifiable works under the
Construction (Design and Management) rules Act 2007 rules (CDM), you or
your CDM coordinator will be required to submit an F10 application to the
HSE. One of these to be prominently placed at every site. The Health and Safety
Executive (HSE) form F10 of a construction project.
➢ It is your obligation to transport and store your garbage in an authorized
manner. Make sure that your garbage doesn't negatively impact the
environment. You have an obligation to uphold your duty of care.
➢ These recommendations give the building sector a defined procedure for
managing UXO risk, from initial risk assessment to putting site- specific risk
mitigation plans into action.
➢ According to the regulations, the construction sector must make sure that it
carries out its duties to safeguard those involved in ground- intrusive
operations (including excavation, drilling, piling, archaeology, and site
investigation) from any reasonably foreseeable UXO danger.

(figure 4: Source google)

7
2.3 SWOT ANALYSIS

One kind of diagnostic tool used to find strategic planning early in a project is the
SWOT analysis. Both internal and external components of this study are utilized to
emphasize the opportunities and threats in the external dimension, as well as the strengths
and weaknesses in the interior dimension (internal positive and internal negative). In order to
streamline the building and investment processes, this analysis will help with risk assessment
as well as strengths and weaknesses analysis. (Zima, Krzysztof, 2020)

Advantages of SWOT Analysis: Disadvantages of SWOT Analysis:

• It is a straightforward tool that can be • Due to the fact that the technique utilizes
used by any individual or group to individual data, it is regarded as a
identify and evaluate static choices. subjective study.

• An investigation at multiple levels of • Data from a SWOT analysis might


the internal and external environments. quickly become obsolete.

• Reduces the construction project's • Due to insufficient data and a lack of


expenses and risks. structure, crucial elements may be missed.

• It helps prioritize action on the most • It is difficult to create a collaborative


pressing issues by allocating resources environment when data undergoes
appropriately. frequent modifications.

Table 1: Advantages and Disadvantages of SWOT Analysis

8
Figure 4 – Define of SWOT (source from google)

Our team members produced a range of perspectives with an emphasis on


environmentally friendly and sustainable building practices while keeping all of this in mind.
The following lists some ways to put the structure into practice.

No. Proposed Activity scoring based on Swot Final options


analysis

1 Restaurant 1 Option 1

2 Supermarket 2 Option 2

Co-working spaces/
Offices
3 3 Option 3

Student

4 accommodation 4 Option 4

5 Car show Room 5 Option 5

6 Ware house 6 Option 6

7 NHS 7 Option 7

8 Gym 8 Option 8

Table 2: Discussion for selecting the options

9
By conducting a thorough examination of each alternative, the team
has settled on the most suitable concepts to implement in the existing structure. The
following table illustrates the advantages and disadvantages of adapting these strategies
to building

STRENGTH WEAKNESS OPPORTUNTIES THREATS


Patients' safety, The National Employment will Hackers
OPTION 1 – FULL experiences & Health do like Driver for may be
REFURIBSHMENT results all Service Patient Transport incentivized
(NHS) improve when (NHS) is Service (PTS) to take
staff members notorious for and assistant in advantage of
are respected, its lengthy ambulance care. private
empowered, wait times for Emergency patient
and supported. non-urgent Medical information
care and Dispatcher and or demand
appointments. Call Handler. ransom
assistance etc., payments
from
businesses.
OPTION 2 –
PARTIAL Providing a Being a small Meeting Increasing
DEMOLITION & safe cooperative demands of prices and
REFURIBSHMENT environment impact to international as maintenance
(Student with secure meet the well as local costs in the
Accommodation) accommodation requirement students. future.
facilities. Being of numerous Students can
Close to the students. engage in
city Centre has different cultures
its own perks & and be social
Eco-Friendly.
OPTION 3 - For marketing For Good marketing Sudden
FULL sale, designed mechanical and less increase in
DEMOLITION (Car to create services it’s advertisement car
Show Room) powerful not possible,

10
impression on Because of marketing
the customer and Environment price
ultimately drive impact
sales for surrounded
the brand area
Table 3: SWOT Analysis for selected options

3. EVALUATION OF METHODS:

3.1 FULL REFURBISHMENT - NHS

Full Refurbishment refers that, the building is to make better, shine, or restore
anything to its former state. It a property is the process of making the suitable for occupants
once more. Now in full refurbishment, the structure selected as NHS, because the structure is
in good condition & surrounded by all facilities for medical emergency.

(Figure 5 example for IKEA Full Refurbishment to NHS )

11
3.2 PESTEL ANALYSIS for FULL REFURBISHMENT

Political Factors

➢ The rising disparity between the demands on the NHS and its resources is
largely due to the care backlog. Funding for the NHS is not a theoretical or
abstract subject. Insufficient resources will have an impact on both quality and
accessibility.

Social Factors

➢ The healthcare industry is gradually improving as a result of the numerous


new technologies being produced. Because they are now more reasonably
priced than ever, scanning instruments are a need in clinics and hospitals.
➢ In an effort to reduce morbidity, numerous pumps and instruments for
managing or treating ailments are being created. All parties involved benefit
from these technology advancements in the healthcare industryoverall.
➢ Patients not only obtain better care, but government agencies such as the NHS
may expedite This holds true for both clinical professionals and patients, who
are informed via free, high-quality content sources and devices.
➢ The funds allocated in the Spring Budget 2023 for the duration of the
Spending Review term (ending in 2024–25) is in line with the pledges made in
November 2022, even after taking into consideration revised inflation
estimates. The NHS's revenue or capital budgets won't be increased from what
was declared in the fall of the previous year. Compared to the amounts in the
Autumn 2022 Statement, health capital investment is up £0.3 billion for 2023–
2024; however, this is due to an underspending in 2022–2023 rather than an
overall increase.

12
Technical Factors

The total construction of five floors, the total build-up area is 28,230 sqm. The
Ground floor-area 916 sqm is OP, first floor-area 783 sqms, second floor-area is 8103 sqm,
third floor-area is 2137 sqm, fourth floor-area 22672 sqm, fifth floor-area 6775 sqm & sixth
floor-area 6986 sqm, Roof is 263 sqm. Each floor may have a different number of rooms
regarding to facilities in NHS. These floors are accessible via stairs, elevators based on the
patient conditions. Based up on the area the plans are executed.

Economical Factors
In 2022-2023, the UK's central government will have spent approximately £180 billion
on health care (including through the use of devolved administrations and central government
departments). This is equivalent to around 10% of your taxes, or the entire GDP (Gross
Domestic Product).

Legal Factors
➢ Patients (or family members) who are dissatisfied with the caliber of their care,
however, are turning to the legal system more often than not to get revenge.

➢ The UK has seen an increase in the care related lawsuits, and this pattern of increasing
numbers of lawsuits is nothing new to the NHS. The healthcare organization will
regrettably have to incur additional, significant costs as a result of having to finance
pricey legal defenses and settlement payments.

➢ It can be simpler for the body to deliver high quality health as a result of technological
advancements But if the NHS is to live up to rising expectations, it appears that it will
require a lot more funding.

13
Floor Plans for NHS

Ground Floor Plan

First Floor Plan

14
Second, Third and Fourth Floor plan

15
Fifth floor plan

Sixth floor plan

16
3.4 PARTIAL DEMOLITION – STUDENT ACCOMIDATION

Partial demolition is a viable option for transforming a structure into a STUDENT


ACCOMIDATION because it allows the removal of any subsidiary structures or components
that might be obstructing the transformation of the space. The proposed building will be five
floors, but the 4th & 5th floor are selected to be partial demolition. Due to easy access to public
transport and the location of the Site near City Center, this location is more suitable for
students.

Figure 6 – Example for student accommodation

3.5 PESTEL ANALYSIS FOR STUDENT ACCOMIDATION

Socio-Political

➢ It will retain the structural performance and increases the usability of building
effectively.
➢ The existing building considering electrical and fire safety defaults and installation of
necessary safety services as well as to assure compliance with safety laws.
➢ Providing free Wi-Fi facilities over the entire accommodation
➢ It will be carried out to enhance a building's aesthetics, such as by modernizing the
exterior facade and interior decor.
➢ The accommodation best suites in place for the students

17
Economical Factors

➢ The investment costs depend on the capital required for the project refurbishment.
The income generated through the student accommodation will be future proof as
Coventry University is in high demand of students for its education.
➢ Using Lean project management will help to complete tasks more quickly when you
streamline personnel and procedures. Has ability to finish the project more quickly and
move on to the next one results in better productivity and allows to take on more jobs
with high return!
➢ Nonetheless, since 2007, there have been 102,000 more students residing in private
residence halls than there were in 2007. During the financial crisis, investors have
consistently poured money into this sector, even while other investment categories
have slowed down. Private sector investment is expected to have increased from £350
million in 2009 to £2.1 billion in 2013.

Technical factors

➢ The first-floor area 4050 sqm, second-floor area 3860 sqm, and third-floor area 4990
sqm, remaining left floors 4th,5th &6th floors are in demolishing stage. Each floor may
have a different number of rooms. These floors are accessible via stairs, elevators or a
combination of both.
➢ The student accommodation typically comprises of Standard, En-suite and studio
rooms. Different categorized rooms are standard rooms, En-suite rooms and studio
rooms. It also offers amenities such as laundry facilities, study lounges, or fitness
rooms to provide a comfortable and convenient livingenvironment for students.
➢ The ground floor of the building consists of car parking, common lounge and staff
working room.
➢ To optimize energy consumption or functioning ventilation, heating systems, air
conditioning, electrical, or other mechanical components will be installed.
➢ The project sustainable design ideas will be taken into consideration like recycling of
materials, utilizing natural light, and placing in renewable energy sources.

18
Legal Factors

Like a forgotten security deposit or a tardy response to requests for maintenance

The belief in personal importance, individual variations such as age and socioeconomic position, a
range of cognitive biases, an increase in commitment and sunk results, and prior experiences are all
significant determinants

3.5 FLOOR PLANS FOR STUDENT ACCOMIDATION

Ground floor level plan

19
First and Second Floor plan

Third Floor Plan

20
3.5 Full Demolition – Car Showroom

Based up on the Ikea building surrounded conditions decided to do totally demolished


& new building is Car show room. When a building is taken apart but significant components
are meticulously preserved for future use, that process is called deconstruction. In contrast,
demolition. There are some parallels and differences. This comprises additional elements that
are taken into account when deciding whether demolition qualifies as construction.

Figure 7– Example for Full demolition – CAR SHOW ROOM

3.6 PESTEL FOR CAR SHOWROOM


SOCIO - POLITICAL – LEGAL FACTORS

➢ People from emerging and stable economic zones are getting richer every day.
As a result, their purchasing power is also increasing. It explains why there is
a growing need for automobiles.
➢ Communities' customs and cultures have an impact on the auto business as
well. For instance, the number of car owners may be lower

21
in nations with well-connected bus systems. Developed nations also tend to
have one or more cars in their possession.
➢ There is more rivalry for customers' business and more options available in an
area with many dealerships, so that's where they will search further. Dealers and
customers benefit from it.
➢ It has been demonstrated that removing vehicles from city centres, or at least
restricting their access, makes urban areas safe places for cycling and walking
while drastically lowering air and noise pollution, which has raised concerns
about the climate catastrophe.
➢ You also feel more independent because you don't need to rely on anyone else
to go about. In addition, they are typically more comfortable than public
transportation. The temperature is under your control, amongother things.

TECHNICAL FACTORS

The construction is total of new & designed as total construction area is 14,400 sqm,
from the ground floor to floor the total area is in Typical floor. The rooms are category to
staff rooms – service manager, technical support, non- technical support team, reception,
conference room, Lounge, Car display, canteen, Toilets, car wash, parts shop, car handover.

3.7 FLOOR PLAN FOR CAR SHOW ROOM

Ground floor plan

22
First floor Plan

Second floor plan

23
BCIS CALCULATION
4.1 Option 1 : Full Refurbishment (NHS)

(Analysis for NHS : Source - Own - BCIS website )

24
( Average Price Analysis for NHS Source - Own - BCIS website )

AREA : 28,230 sqm

BSIC Tender Price Indices ( TPI ): 388

UK Mean Location ( Location Index ) LI : 100

History Calculation :

Title : Internal floor area for the building cost including prelims

Location : Enfield, Grater London

Date : Apr-2016

BuildingCost:

£75326983

Cost/m2 : 3283

TPI : 376

LI: 129

25
By considering all other required value from the above figures , we are about tocalculate the
adjusted cost.

Adjusted Cost = 3283* (388*100) / (376*129 )

= £ 2626

Capex = Adjusted Cost * Total Area

= 2626 * 28230

= £ 74,31,980

Hence the final Budget for the full refurbishment of this project NHS is £ 74,131,980

4.2 Option 2 :Partial Demolition and Refurbishment

(StudentAccommodation)

(Analysis of student accommodation Source – own – BCIS Website )

26
27
(Graphical Analysis for Student accommodation Source : Own – BCIS Website )

AREA : 12,900 sqm

BSIC Tender Price Indices ( TPI ): 388

UK Mean Location ( Location Index ) LI : 100

History Calculation :

Title :Student Halls of Residence , University of creative arts

Location :

Date : 17-may-2019

Building Cost : £15,48,51,06

Cost/m2 : 3283

TPI : 376

LI: 129

By considering all other required value from the above figures , we are about tocalculate the
adjusted cost.

28
Adjusted Cost = 2329* (388*100) / (356*92 )

= £ 2759

Capex = Adjusted Cost * Total Area

= 2759 * 12900

= £ 3,55,91,100

Hence the final Budget for the Partial demolition and refurbishment of this projectstudent
accommodation is £ 35,591,100

4.3 Option 3 : Full Demolition ( Car Showroom )

(Analysis for Car showroom source: Own – BCIS website)

31
( Average Price analysis Source – own – BCIS website )

AREA : 4800 sqm


BSIC Tender Price Indices ( TPI ): 388

UK Mean Location ( Location Index ) LI : 100

History Calculation :

Title :Student Halls of Residence , University of

creative arts

Location : In chcape Jaguar Land Rover

Dealership

Date : nov – 2016

Building Cost : £48,95,163

Cost/m2 : 801

TPI : 292

32
LI: 98

By considering all other required value from the above figures , we are about tocalculate the
adjusted cost.

Adjusted Cost = 801* (388*100) / (292*89 )

= £ 1086

Capex = Adjusted Cost * Total Area

= 1086 * 4800 * 3 ( Three floors )

= £ 10,42,56,00

Hence the final Budget for the full demolition of this project Car showroom is

£ 10,425,600

4.4 REVENUE GENERATION


Options Revenue Generation
NHS – Full Refurbishment ➢ During the fiscal year 2020–2021,
patient care operations generated
operational income of over 90
billion British pounds, of which over
10 billion came from mental health
services. That year's total operational
income exceeded 105 billion British
pounds.
➢ The Department of Health and
Social Care's budget provides public
money for health services in
England. In 2022–2023, the
Department spent £181.7 billion.
The great bulk of this expenditure, at
£171.8 billion, or 94.6%, went
toward regular expenses including
employee wages and
prescription drugs.

33
STUDENT ACCOMIDATION – Partial ➢ It usually discover a greater yield
Demolition percentage and a longer period of
time with student housing.
Developers frequently promise 8–
10% NET returns for a maximum of
5 years; Higher yields. Rent for
students is usually substantially
higher than for other renters, and
they have greater access to the
property. Year-over-year yields for
well-managed shared studenthousing
can reach 20%. Possibility of future
price growth, particularly if it is sold
as a going concern.
➢ Aim for a profit of at least 10% after
all costs and taxes, while the precise
number may depend on your
circumstances. 10% is a decent goal,
but depending on theproperty and the
rental market, you could be able to
make more.
➢ Investing in student property in the
UK in 2023 offers several
compelling advantages. A resilient
and growing market, consistentrental
income, higher rental yields,
potential for capital appreciation, tax
benefits, and portfolio diversification
make it an attractive option for
investors

CAR SHOW ROOM – Full Demolition ➢ In actuality, car dealers profit on


new vehicles by an average of 7%.
Speaking with managers of dealer
groups, we learned that gross profit
on new automobiles was between
five and seven percent. The market
for second hand cars is far stronger,
with dealers' profit margins ranging
from 12 to 15 percent.
➢ According to recent data from
Pendragon, one of the most

34
lucrative auto dealership groups as
listed in the auto Dealer Top 100, the
company's average revenue for the
first half of 2022 was 8.9% from
new car sales and8.1% from used car
sales. These percentages are more
representative of the industry as a
whole.

5 CONCLUSION
➢ Based on the BCIS & survey regarding the project location.

➢ Our Group members/ my Team selected the option 2 "PARTIAL DEMOLISION - STUDENT
ACCOMIDATION"

➢ Very near location to university & have so many feasibility options for the students

➢ f based on the construction, the materials are recycled and used in construction

➢ Risk management & waste management both are balanced to supported the growth of building

➢ As a general rule of thumb, client should strive for at least 60% profit after all costs and taxes,
though the exact number will depend on your particular circumstances. Although 40% is a
reasonable goal, the property and the rental market may allow you to earn more.

➢ Unprecedented Demand for Student Housing: 1,489,110 students nationwide are in need of student
housing at this time.

➢ Student have the chance to grow more independent, particularly if they decide to move away from
home to pursue their studies. Common experiences include living away from home, handling their
own finances, and striking a balance between school and student accommodation

➢ Reduce of using public or private transportation for attending classes, so automatically the student
finance is safe

➢ The steady rental revenue provided by student housing is one of the key benefits of investing in it.
Since most student leases are signed for the duration of the academic year, landlords may be sure
they will get a consistent revenue for the term of the lease.

➢ As per the findings of a report published by Knight Frank, the average occupancy rate of purpose-
built student accommodation in the UK during the 2021-2022 academic year was 92%. This
indicates the stability of rental income and suggests that the UK student market is valued at
approximately £72 billion.

35
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