Source :
Apple Intelligence :
• Tenant Mix Diversification: Mall operators are replacing cinemas with gyms, indoor basketball courts, tuition centres, and immersive dining experiences.
• Cinema Industry Challenges: Cinemas face difficulties due to the rise of streaming services and changing consumer preferences.
• Shift in Mall Operator Perspective: The pandemic accelerated a trend of people consuming entertainment at home, reducing the value proposition of cinemas as anchor tenants.
• Cathay Cineplexes Transformation: Cathay Cineplexes is transforming some of its outlets into education and enrichment hubs.
• Parkway Parade Example: Parkway Parade’s outlet has been transformed into an education and enrichment hub with a basketball academy and a math enrichment center.
• The Cathay Example: The Cathay along Handy Road now houses PSB Academy and other businesses, no longer operating as a cinema.
• Cinema Space Repurposing: Filmgarde Cineplexes’ space at Leisure Park Kallang will become an “immersive dining” venue.
• New Tenants at Parkway Parade: Scholar Basketball Academy is among the new tenants at level seven of Parkway Parade.
• Cinema Overhaul Plans: West Mall and AMK Hub plan to overhaul the cinema spaces formerly occupied by Cathay Cineplexes.
• Cinema Space Repurposing: Seletar Mall’s former Shaw Theatres space is expected to be repurposed, potentially for tenants like gyms or co-working spaces.
• Changing Consumer Behavior: Shifting consumer preferences and challenging market conditions are leading mall and cinema operators to reevaluate their business strategies.
• Mall Operator Preferences: Mall operators are increasingly seeking tenants that can generate consistent foot traffic throughout the day, favoring higher-paying options over cinemas.
• Tenant Selection Criteria: Mall operators prioritize tenants that can attract foot traffic, such as enrichment centers, gyms, and experiential F&B outlets.
• Reasons for Choosing Specific Tenants: These tenants are preferred because they encourage longer stays, attract customers during off-peak hours, and offer a diverse range of experiences.
• Cinemas’ Current Status: While rental payment delays are a concern, experts believe cinemas are not yet considered a significant risk for landlords.
• Cinema Space Reinstatement: Restoring a former cinema space can be expensive and time-consuming, potentially costing six figures and taking months.
• Benefits of Similar Tenants: Having a replacement tenant from a similar trade, like another cinema, can reduce capital expenditure and ensure stable income for both landlord and tenant.
• Shaw Theatres at Jem: Shaw Theatres will take over the cinema space at Jem, becoming the only cinema operator in the Jurong East catchment.
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