Hong Kong's Pegasus to Open Cinema Multiplex in Shanghai
Pegasus moves into mainland exhibition to tap into the booming China market.
Hong Kong production, exhibition and distribution company Pegasus Entertainment has signed a joint venture deal to open its first multiplex theater in mainland China, in its financial hub of Shanghai.
The multiplex, called Cinema City, will be situated on the top the top two levels of Vivo City, a large-scale retail complex in the CBD district of Minxing in Shanghai, and is developed by the Mapletree Group of Singapore. The deal multiplex is on a 15-year lease, and construction is expected to be completed by the first quarter of 2016.
Pegasus, which was founded by veteran producer Raymond Wong, has signed a 60:40 jv with the mainland investment company Lander. The two partners have together guaranteed performance guarantees to the landlord of up to $1.33 million.
The new complex will have at least nine screens, upwards of 1,400 seats and use 4DX motion technology.
China is on a cinema-building spree, adding 1,015 cinemas and 5,397 screens last year, bringing the total number of screens to 23,600. On average, 15 screens were added each day, according to the State Administration of Press, Publication, Radio, Film and Television (SAPPRFT).
The group said it hoped to build on the success of the Pegasus flagship cinema in Hong Kong — Cinema City Langham Place, and replicate the model to its cinemas in China.
"The group is optimistic about the future of the film industry in the People's Republic of China market. Our new cinema located in the prime area of Shanghai [and] underscores the Group's commitment to its expansion plan of cinema operations in the PRC," said Wong.
He said the theater also was a complementary extension of Pegasus' existing core business of film production by way of providing an additional and direct film distribution channel in the form of cinema operation.
"We will continue to capture sound business opportunities and strive to establish cinemas in more top-tier cities, so as to further expand our foothold in the PRC," he said.