The Cape Town science centre : a comprehensive business plan
Abstract
This business plan describes the activities and projected financial operation of the
Futropolis, a new science and technology centre to be located at Century City, Cape
Town. The Futropolis is the first of a network of science and technology centres that will
be established by MTN in South Africa and elsewhere in Africa with the aim of
increasing the techno-literacy of all South Africans.
The Directors and Financial Managers of science centres and theme parks throughout
the world have been consulted during the compilation of this business plan. Financial
statements from over 20 science centres have been obtained and studied, and several
books on science centre planning and management have also been consulted. In
addition, we have benefited considerably from discussions with the developers of the
Ratanga Junction Theme Park at Century City.
This business plan details the nature of science centres world-wide, their target
audience and the benefits to the communities that they serve. It describes in detail the
elements that will be introduced into the science centre, their function, and all costs
involved in their implementation. The success of the Futropolis is dependent on our
ability to raise the necessary seed funding to purchase the interactive exhibits and
displays. The financial scenarios clearly indicate the ongoing viability of this venture
should the initial capital be raised.
The Futropolis is a R29 million venture comprising a R12 million purpose-built centre,
R12.5 million exhibits and displays, and R4.3 million facilities. Annual turnover
(excluding temporary exhibition revenue) is R11 million per annum. A section 21
company (the Interactive Science Foundation) has been formed as an umbrella
organisation to oversee donation income and to ensure that the disbursement of funds
takes place in the manner envisaged.
MTN has already committed to the Futropolis initiative in the following ways:
* The R2.5 million purchase of the GeoSphere
* The salary and running costs of Professor Bruton and his team
In addition, MTN has committed to the following technology and environmental
education projects that will further be developed in association with the MTN Futropolis:
* The MTN 'Corporate University' project that will develop needs-driven university and
technikon training courses for present and future MTN staff
* A 5-year commitment of R2.5 million to the MTN SUNSTEP project
* Identification with the SUNSAT programme
* An annual regional commitment of R600 000 to the MTN Whale Route
This business plan identifies the sources of funding for the various components of the
Futropolis. Funding has already been secured or committed in principle for
approximately R1 0 million's worth of displays and exhibits. It is highly likely that the
balance will be raised on making this initiative public, but the financial projections
assume that the balance will be financed through normal financing channels, i.e. loans
from banks.
Included in the overall cost of the project is R12 million needed to construct the building.
Monex (the developers of Century City) have undertaken to construct the building at
their cost and to lease it back to the Futropolis at a nominal rental of R50-m2 plus
operating costs. The normal rental for space in the Century City shopping complex is in
the range R1 00 - R220-m2 per month, depending on the size, frontage area and length
of the rental period. Monex is therefore offering a considerable reduction (about 50%) on
the rental for the space offered to the Futropolis.
The size of the space rented for the Futropolis will be 4000-m2 (3500-m2 for front-of-house
displays, 500-m2 for behind-the-scenes storage and workshops) at a monthly
basic rental of R200 000. In addition, an office space of 340-m2 has been made
available to us in an adjacent office block, at a monthly rental of R23 800.
It is recommended that:
1. MTN guarantee the rental for years 1 and 2 (MTN financial years 2001, 2002),
and underwrite the balance of the lease. This amounts to R1 342 800 for year 1
from October 2000 to March 2001, and R2 685 000 for year 2 (April 2001 to
March 2002)
2. MTN provide working capital in the amount of R550 000 for the period April to
October 2000.
The Futropolis is an MTN initiative, and as MTN is guaranteeing the rental, it will be
named the MTN Futropolis with visible branding along two prominent walls, at the
entrance, on billboards adjacent to the N1 , on a 40-m high tower, and on all printed
material and advertisements emanating from the Futropolis.