Cinemas expand to Cambodia

 

4 Dec – In its mission to make an initial expansion on the Indo-Chinese region, it was revealed that Thai-based movie theatre company Major Cineplex has decided to begin with 'a high-end lifestyle and entertainment complex' at the Aeon Mall in Phnom Penh, Cambodia, where their current and major cinema show runners are Legend Cinema, which currently has 3 halls with 322 seats +250 +190 in a single location, and Platinum Cineplex which also has 3 halls in total.

According to Major's Director of Business Development, Jim Patterson, the reason for choosing Cambodia is due to its cost effectiveness and commercial rental market stability, stating that Cambodia had met the criteria perfectly in such that it has a reasonable upside and location with practical rent.

"Aeon is a respected mall-builder and a very respectable landlord," said Patterson. "But we still have to be patient and remain realistic since Cambodia is not the biggest or the highest-income market."

Back in June, Major's Chairman, Vicha Poolvaruck revealed that the plan is to have seven or eight screens to an approximate 1,400 seats, with the investment of around Bt150 million (approx. USD 4.66 million).

"The potential in Cambodia is similar to Thailand 17 years ago, where there were only several standalone cinemas and Major's first Cineplex attracted much scepticism. But now, we have more than 400 screens in Thailand, with 100 more planned this year," said Patterson.

Established in 1995, Major Cineplex Group, which founder Vicha described as an 'entertainment lifestyle company', operates more than 400 screens in 61 locations throughout Thailand. It is also preparing to open two more locations before year's end in the southern city of Hat Yai and northern capital of Chiang Mai's brand-new hyper-modern malls, with the aim of reaching 500 screens by the end of the year.

As Thailand is located at the centre of the ASEAN Economic Community market (AEC), Vicha revealed that it was only fitting that they expand to nearby potential markets, and added, "In addition to Cambodia, the company is also in discussion with a potential partner to expand into other markets, including Laos, Myanmar and Vietnam."

The Cambodia project is expected to be ready by mid-2014.