Investing In Multiplexes (Cinemas) In Pakistan

With the Eid holidays around the corner, many of you might be heading to a multiplex to watch one of the newly released movies. Form a real estate standpoint, investors interest in multiplexes has increased substantially over the last five years in Pakistan’s three metropolitan cities, as they are proving to be lucrative investments. Developers planning to establish multiplexes or investing in one should factor in the following: Costs. * The cost of building multiplexes (with at least three screens) ranges between Rs 40 and 50 million. * The ROI (return on investment) is nearly 17 to 20%; monthly rentals range between seven and 10 million rupees. Therefore, if a multi is rented out, the construction costs can be recoverd within five to six years. * Monthly maintenance costs range between Rs 50,000 and 150,000.

* The presence of a multiplex cinema within a mall increase the customers footprint by an estimated 35 to 50% and the value increases by at least 40%. * Rental rates for beverages and refreshment outlets within multiplex lobbies range between Rs 2,500 and 3,000 per square foot; they are 10 to 20% higher compared to similar spaces in malls and commercial areas. Design.

* The covered area of a multiplex ranges between 10,000 and 40,000 square feet; the covered area for each cinema hall ranges between 3,000 and 5,5000 square feet. * Entrances to the halls should be at least fix feet wide. * The floor gradient (slope of the cinema floor) and the viewing angle should not exceed 1630, centimeters and 30 degrees respectively to ensure a quality cinematic experience; leg space should be at least 45 centimeters. Security.

* Mandatory security elements include fire exits and fire extinguishers; their number varies according to each hall’s seating capacity. For example, a hall that accommodates up to 80 people should have at least two emergency exits and four extinguishers in place.

By Uzma Nawaz

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