Big screen with niche following in Hamilton

Hamilton’s boutique independent art-house movie theatre Victoria Cinema is for sale by negotiation as a going-concern.

Located in the main street of Hamilton’s CBD, the Victoria Cinema was launched eight years ago and has kept pace with the growing demand for showing quality art-house, fringe, foreign, independent and selected mainstream movie releases.

Marketing agent Mike Swanson of Bayleys Waikato says there is a sector of the movie-going market that eschews the mass-media, multiplex cinema chains and the Victoria Cinema has established a niche following in the Waikato.

“There’s a certain ambience to this cinema which people find quirky and appealing. There’s none of the hype and glitz of the larger cinema operations but rather a traditional, nostalgic movie-going experience that has ensured loyal and strong patronage since it first opened in May 2002 screening French movie ‘Under the Sand’ starring Charlotte Rampling.”

Owners Grace Martin and Gary Potts have a passion for movies and some of Potts’ personal collection of memorabilia including old posters and projectors are displayed at the Victoria Cinema. With Martin’s recent re-appointment at Morrinsville College, the business is genuinely for sale.

“Since establishing the cinema, the owners have kept pace with changing cinematic developments and have recently installed digital 'e-cinema' technology to stay current and allow for clearer imagery and streamlined operation,” says Swanson.

Potts, an avid movie and technical buff, says the current 5000 lumen DLP video projector, dedicated fileserver and automation allows digital sessions to be programmed and started remotely from the box office. Remoting can also be applied to 35mm film sessions.

“The on-screen images from high-definition digital files are superb and look better than many 35mm film prints. Our digital Cinemascope picture is the same size as film Cinemascope and looks fantastic,” says Potts.

The cinema operates from leased premises - with renewal rights through until 2019 - at 690-692 Victoria Street near the corner of London Street.

Originally built as a garage in 1921, the building was later well-known as Turners and Growers’ premises in the 1950s. It then went through various trade or retail guises prior to its conversion to the cinema. Next door is the former Carlton Theatre – now the Bayleys office.

Entering from the street there is a small lobby/box-office area with period-style features including a chandelier and decorative ceiling. Access through to a small licensed cafe is via the lobby or through separate doors off Victoria Street. The cafe, Flicks, caters both for casual patrons and movie-going clientele with the bulk of its business being confectionary, light refreshments, wine and beer.

The auditorium to the rear has a single screen, is air-conditioned and has 60 wide seats tiered in stadium-style with generous leg room. All seats have fold-down tables for refreshments which can be delivered to individual seats while patrons are enjoying a movie, or to accommodate conference/presentation materials.

“The intimate auditorium is styled on a Victorian theme with architectural reliefs based on Hamilton’s long-demolished Regent and Embassy theatres. It has also become a popular venue for product launches, small conference presentations, auctions and fundraising events and the Hamilton Film Society has used the theatre as their weekly venue for the past six years,” says Swanson.

Since the property has been on the market, Swanson has had enquiry from several people looking at the possibility of showcasing live theatre in the auditorium and he says the building could support this usage.
“There is room behind the screen for dressing rooms and other ancilliary facilities required for live performances. It could be possible to have a flexible space that could be used either for theatre or movies. With the liquor licence in place, this could be an alternative, intimate venue for plays and other performances.”

In addition to the revenue stream generated by the cinema, there is also a two-bedroom apartment on the first level which is currently sub-let to a long-term tenant who would be keen to stay on. Entrance to this apartment is from a lane which runs behind the cinema building. To the side of the building are 11 car parks for cinema patrons’ use.

The rental on the entire building is $60,990 plus gst per annum.

Swanson says this is a well-performing business with proven systems and potential for expansion and further growth.

“Full training will be provided to a new owner and there is potential to grow the business. It could be feasible to broaden the screening times to include more day time sessions, the venue could be more widely promoted as a conference or presentation facility and there is that idea of live theatre to be pursued,” says Swanson.

“Whilst not the core business activity, the cafe operation could also be revamped to attract a wider clientele from passing foot traffic.”