Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Savvy Plan Behind New Dunedin Reading Cinema

RDI - Savvy Plan Behind New Reading Cinema Replacing Hoyt's Dunedin Movie Theater


A completely refurbished six-screen Reading Cinema in Dunedin presents a savvy story in the New Zealand movie theater competitive landscape not fully appreciated by the media.

In 2007, Reading International (NASDAQ: RDI), which owns the Reading Cinema theater chain, among several others, stealthily purchased the real estate underlying Hoyts’ Octagon theater in Dunedin, New Zealand and secretly became Hoyt’s landlord. Reading International's real estate segment collected rents from Hoyts for seven years until the 20-year lease expired.

As the lease's expiration approached, Reading was in the favorable position to demand substantially higher rents from its competitor or, alternatively, take over possession of the theater and open a new Reading Cinema. Hoyt’s opted to close the theater and perform the required work to return the building to its original state - including taking out seats and other equipment.

All this paved the way for Reading’s new AUS$5.5MM six-screen cineplex that just reopened, July 25.

Reading’s six-cinema complex seats 750 people, about 30% fewer seats than when Hoyts occupied the building. In this more comfortable roomier setting, two of the six auditoriums have been upgraded to premium ''dine-in'' cinemas with plush “wide-body” seats with two drink holders and a swivel table. A new kitchen, offering freshly cooked foods, was built behind the ticket counter.

Otago Daily Times
July 25, 2014
Emphasis on space, comfort as cinema opens
http://www.odt.co.nz/news/dunedin/310511/emphasis-space-comfort-cinema-opens

Otago Daily Times
July 20, 2013
Hoyts to close Octagon cinema
http://www.odt.co.nz/news/dunedin/265530/hoyts-close-octagon-cinema

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news