Hoyts saves Cronulla Theatre from closure and plans $6 million renovation
A movie theatre in the southern Sydney suburb of Cronulla that was set to close has been given a last-minute reprieve after the nation’s biggest cinema chain agreed to take on the lease.
The Cronulla Theatre has been leased to Hoyts in a deal that will see the national chain pump more than $6 million into renovating the iconic structure, with agents expressing hope that suburb’s flagging retail market will, in turn, be reinvigorated.
The 15-year deal was secured following off-market negotiations by Ray White Commercial NSW Greater Sydney South directors Charlie Yankos and Brad Lord on behalf of the site’s landlord.
The heritage-listed theatre, on the corner of The Kingsway and Cronulla Street Mall, had been set to close in February after current operator Event Cinemas announced it would not be taking up further options under its lease.
“I have lived in the Sutherland Shire for more than 30 years, and I know the importance of this iconic building as a special part of the local community. I am proud that Hoyts will now ensure the legacy continues,” Hoyts’ chief executive Damian Keogh said of the deal.
Hoyts had long expressed an interest in coming to the Cronulla market. That and the existing relationship between Mr Keogh, a former professional basketball player, and Mr Yankos, a former Socceroos captain – both former Olympians – helped the deal go smoothly, Mr Lord said.
As part of the deal, Hoyts has a 15-year lease with five-year options. The price struck for the lease agreement – which includes the commitment by Hoyts to renovate the building – remains undisclosed.
Mr Lord said that the closure of the cinema would have had a devastating effect on the local retail market, which is already struggling with high vacancy rates caused by a mixture of high rents and a lack of consumer spending on discretionary items.
“Sentiment around Cronulla retail at the moment is very low – there’s more vacancy than I’ve seen in my entire lifetime down there. If the cinema were to close, it would spell disaster for the whole area,” he said.
Upgrading the building would attract foot traffic to the cinema and surrounding food-and-beverage options after moviegoers had increasingly chosen to see films at newer facilities in the recently opened Miranda Westfield.
“Cinema numbers [were] down because Miranda Westfield is new and when there’s an inferior cinema offering down the road, it’s human nature that people will gravitate toward the newer option … [but] the fact that Hoyts is going in there is going to reinvigorate that end of the mall,” Mr Lord said.
“In Cronulla, because of the lack of people wanting to go and see a movie, there’s not enough foot traffic and as a result of that everyone is struggling. With Hoyts doing what they do, it’ll bring people back to Cronulla.”
Hoyts will take possession of the site in February and commence renovations including the installation of recliner seating in the theatres as well as upgrades to front-of-house facilities, such opening a “treat city” and Artie’s Bar & Cafe.
The complex will reopen under the Hoyts brand in July 2020, in time for the blockbuster release period that coincides with the American summer.
