Previously, Cathay Cineplexes was sent a lawyer to ask for about 2.7 million yuan for rent for two shopping malls under Xingshi Real Estate Trust (FCT). Cathay Cinema closed two cinemas within one month because it was unable to pay the rent.

Xingshi Real Estate has made frequent acquisitions this year. In March, Xingshi Real Estate Trust planned to acquire 100% of the equity in the south of Northpoint City for a total of RMB 1.17 billion, thus owning all equity in Nafu City and becoming the owner of the largest shopping mall in the north. Recently, Xingshi Real Estate plans to acquire Frasers Hospitality Trust at a price of 0.71 yuan per contracted securities, and then delist it and privatize it.

As of 4:40 pm on Tuesday (3rd), Xingshi Real Estate's share price was 0.81 yuan, down 0.61%; Xingshi Real Estate Trust's share price was 2.18 yuan, down 0.91%.

48 million yuan is about 6.47% higher than the book value of 45.08 million yuan as of the end of 2024. After the acquisition, Xingliu Company will lease the theater back to Jiahua Cinema. The lease period is 18 months from the completion of the acquisition, and the monthly rent is 10% of the theater's total sales that month.

The company also pointed out that the decision to sell the theater is based on the current market conditions of commercial real estate in Singapore and its own financial situation. Selling a cinema can bring additional cash flow and operating funds, and cash out its real estate investment; and the after-sales leaseback method can ensure the stable operation of the cinema business.

Chengtian Jiahe said that the monthly rent is based on Yishun Jiahua Cinema's past box office revenue and agreed upon by the two parties that they will pay a security deposit of 200,000 yuan to the subsidiary of Xingshi Real Estate, which is approximately equivalent to the estimated rent of three months.

OrANGE Sky Golden Harvest Entertainment Holdings, which is listed in Hong Kong, issued a statement on Monday (June 2) saying that the assets to be sold are Yishun Jiahua Cinema, located on the second to fourth floors of Yishun 10, including the ticket office on the first floor, with a total of 10 cinemas and 1,477 seats. The affiliated parties of Xingshi Real Estate have other stores on the first floor of Yishun 10, except for the cinema ticket office.

In March this year, there were reports that Orange Sky Jiahe was considering selling its Singaporean and Taiwan cinemas, seeking a valuation of at least US$400 million (about S$534 million). According to the Jiahua Cinema website, Orange Sky Jiahe currently operates 15 cinemas in Singapore under the Jiahua Cinema brand, as well as a "Golden Village x The Projector" cinema that cooperates with the Golden Cinema.

A subsidiary of Frasers Property agreed to purchase GV Yishun for 48 million yuan and lease the theater back to the theater for operation. The owner of theater chain Orange Tian Jiahe can exchange for additional cash flow through sale, or reflect the general pressure in the theater chain industry at present.