A New lease of life - the adaptation of the Old Royal Naval College

1. A New lease of life - the adaptation of the Old Royal Naval College Keith FraserBSc(Hons)(Lond) MSc(Lond) MIFMA FCMI The Strategic Move

2. Context • “Public” funding of course fees is reducing and the cost is being transferred to the student • 4 of the global top 20 universities are English • The top 20 is dominated by capital and cash rich American institutions – we need to invest to compete The Strategic Move

3. UK Investment • Universities investing heavily in the built environment – Manchester planning £1bn over 10 year • 60% of 52 universities polled have a construction project underway over £5m (1) • An additional 27% have plans in place over the next 2 years to 2015 (2) The Strategic Move

4. Reasons for Capital Investment (3) The Strategic Move

5. Reasons for Capital Investment (2) (5) (4) The Strategic Move

6. Caveat We COULD conclude that capital investment automatically leads to an improved student experience BUT the driver and the desire are often different: (6) The Strategic Move

7. Caveat • Bain’s report “The Financially sustainable university” concludes that there has been an assumption by many US institutions that the more they build the more they feel they would prosper…. • BUT, the evidence is that the opposite is true if the capital plan is not linked to realistic growth figures The Strategic Move

8. Adaptive re-use Linked to the Hoyt Sector Model of zonal use: The Strategic Move

9. Obsolescence • Categorize buildings according to level of obsolescence: Conditional Obsolescence: building deteriorated to a point where repair is not financially viable against alternatives Utility Obsolescence: intrinsic value that the building offers has deteriorated to the point where constraints out-weigh benefits of remaining Value obsolescence: facility depreciates to the point where replacement is the most cost-effective option The Strategic Move

10. Relative value/obsolescence • Downes classifies buildings into 3 categories (7): • Class A: New building stock either bespoke or speculative development that meets user needs; • Class Ab: Prestige heritage sites that offer intrinsic value due to the building’s status • Class B: Considered obsolete by first occupant but has sufficient flexibility & infrastructure to attract new entrants to the market • Class C: low grade building that can be easily converted to another use e.g. storage The Strategic Move

11. Measuring obsolescence M = f([P],[B]) (8) P = Physical system (building) B = Behavioural attributes or activity of the organisation M is a vector of the mismatch of the functionality of P and B. The higher the value M the greater the need for a new facility. The Strategic Move

12. Interpreting the measure in decision making • A different threshold of “M” tolerance will come about depending on the decision drivers • “M” can be applied against buildings in Classes A, B and C which then becomes a function of affordability • Cost element of P will be based on depreciation and operating costs • The greater the weighting of B the (likely) greater running costs of P The Strategic Move

13. Activity • In small groups identify one of your sites and consider what Physical and Behavioural constraints, drivers, and changes you would build a business case around and feedback to the group. The Strategic Move

14. Trinity Laban at King Charles Court The Strategic Move

15. Context • Trinity was primarily located in 3 conjoined buildings in Mandeville Place from1881 to 2001; • The 130 year lease was due to be renewed in 2002 and the costs were prohibitive • The college had outgrown its campus and leased sites around Shepherds Bush The Strategic Move

16. Context (2) • A business case had been developed to re-locate the college and serious consideration was given to re-locating to new build facility in Bristol • The need was to co-locate the dispersed faculties of the college, improve performance space, increase the number of courses offered and own a “statement” building. The Strategic Move

17. Context (3) • The RN moved out in 1998 and the following year TLC obtained a 144 year lease for King Charles Court • Wates were commissioned to design and refurbish the college at a cost of £16.5m • The refurbishment stripped out the RN fittings and returned the building to its 1873 layout The Strategic Move

18. “P” Issues • Old building not designed for modern infrastructure • Grand room designs not acoustically ideal as performance spaces • Had to install significant amount of lifting systems • High maintenance costs due to listed status The Strategic Move

19. “B” Factors • Immediate “Wow” factor of statement building giving perceived gravitas to institution • Reduction in time lost moving between buildings/sites compared to Mandeville Pl • Improvement in teaching facilities due to design led refurbishment • Long term financial plan securing the future of the college The Strategic Move

20. King Charles Court The Strategic Move

21. Plenary • Macro economic factors have driven investment in many sectors, including HE • A key driver is providing VFM to discerning students/customers • Investment needs to be linked to a wider growth strategy – investment for its own sake won’t drive growth The Strategic Move

22. Plenary • Investment decisions are framed in the context of balancing physical and behavioural constraints with a desired outcome • Sometimes the desired outcome outweighs the constraints as seen at TLCM’s move to Greenwich The Strategic Move

23. Keith Fraser BSc(Hons)(Lond) MSc(Lond) MIFMA FCMIHarper-Fraser Facilities Management LtdE: harper.fraserfm@gmail.comL: http://uk.linkedin.com/in/keithbfraser The Strategic Move

24. Footnotes & Sources • Making the University Estate Work for you, Wates Construction. Publ 2013. www.lexisurl.com/fm14663 • Ibid • Ibid • Ibid • Ibid • Ibid • Downes A: Real Estate Investor Online 1st August 1995 • Adapted from Nutt B and Sears D (1972): Functional Obsolescence in the Planned Environment; Environment & Planning, Vol 4 The Strategic Move