Introduction to the Sale of British Cinemas Circuit
Major UK exhibition operators are eyeing the British Cinemas Circuit, previously owned by National Amusements, after it was put up for sale following the completion of the Paramount Skydance fusion supported by Redbird Capital earlier this month. National Amusements, which belonged to the Redstone family that controlled Paramount, operates 816 screens in the USA, Great Britain, Argentina, and Brazil.
Details of the Sale
The sale includes all of National Amusements’ screens, as Paramount aims to optimize its business and focus on "future-oriented approaches to create content". In the UK, there are 16 Showcase Cinemas locations: Bluewater, Cardiff Nantgarw, Derby, Glasgow Coatbridge, Leeds, Liverpool, Peterborough, Southampton, Bristol Avonmeads, Coventry, Dudley, Glasgow Paisley, Leicester, Nottingham, Reading, and Tesside. These locations can be purchased individually or as part of a sub-portfolio.
Potential Buyers
Tim Richards, founder and CEO of VUE Entertainment, confirmed that they will be looking at the National Amusements website. However, he suspects that they may not be able to buy the entire circuit due to competitive reasons. Instead, they will take a closer look at some of the very good websites available. Other potential buyers may also be interested in purchasing individual locations or sub-portfolios.
Description of the Cinemas
The Showcase Cinemas are considerable complexes, with the largest screen, Bluewater Shopping Center, having 17 screens, and the smallest, Castlegate Leisure Park in Dudley and the West Quay Shopping Center in Southampton, having 10 screens. The largest cinema in terms of square footage is Gielgud Way, Walsgrave, in Coventry, with 105,669 square feet, while the largest site is the Barrbridge Leisure Center, Ballieston in Glasgow East, spanning 24.99 acres.
Additional Information
Some of the cinemas have restaurants, including Nando’s, Five Guys, and Pizza Hut, as tenants. However, it is not known whether the entire circuit will remain intact or if the rent will be as attractive as the ownership points. There is also a possibility that some cinemas may be sold for real estate development rather than continued use as cinemas.
New Developments
Regardless of the sale, Odeon is planning to open a new theater in Cabot Circus in Bristol on the site of the former Showcase de Luxe, which closed at the end of 2023. Additionally, exhibition veteran Crispin Lilly was appointed managing director of the Showcase Cinemas Circuit in spring 2023, but he did not return requests for comment.
