Cathay cinema at Jem closes as landlord seeks $4.3 million in rental arrears

SINGAPORE – The Cathay Cineplex outlet at Jem mall in Jurong East closed its doors on March 27, its operator mm2 Asia said.

This came after the cinema chain

shut its Bukit Batok outlet in West Mall in February

and its Ang Mo Kio branch in June 2024.

There were no more movie listings for the Jem outlet on Cathay Cineplexes’ website as of the morning of March 27.

When The Straits Times visited the outlet in the afternoon, the cinema stood silent with its shutters drawn, with a notice informing patrons who require assistance to visit nearby outlets or write to Cathay Cineplexes.

Another notice by Jem and its landlord, Lendlease Global Commercial Real Estate Investment Trust (Reit), said the unit was “repossessed” on March 27.

The closure of this outlet came after more than a year of negotiations with Lendlease Reit, mainboard-listed mm2 said in a filing on the Singapore Exchange.

Cathay Cineplexes “has been actively engaging with the landlord to negotiate and resolve issues related to the continued occupation of the premises and rent arrears”, mm2 said.

Lease termination

But Lendlease Reit decided to terminate its lease with the cinema chain as it seeks to recoup, among other things, some $4.3 million in rental arrears, mm2 added.

“Cathay Cineplexes remains committed to realigning and rightsizing its cinema business in anticipation of the market and audience shift post-Covid.

“The painful process is inevitable but will allow the cinema to explore new opportunities based on current market demands and ensure long-term sustainability,” the operator said.

In response to ST’s queries, Lendlease Reit said a new tenant will be taking over the approximately 47,000 sq ft space.

“As a landlord, we aim to strike a balance between supporting long-time tenants and ensuring our malls remain vibrant, competitive and commercially sustainable.

“Despite these efforts, Cathay continues to face challenges and unprecedented difficulties in its business. We are currently in talks with them to recover the outstanding amount owed and will provide an update at an appropriate juncture,” a spokesperson for Lendlease Reit said.

Shares of mm2 Asia were down 10 per cent, closing at $0.009 on March 27.

Disappointed patrons

Some regular Jem patrons told ST they were disappointed with the closure of one of the larger cinemas in the West, leaving them with fewer moviegoing options. 

Ms Michelle Lim, 29, a teacher, said she visited the cinema around once a month. 

She is saddened by the development, adding that she would have to rely more on streaming services from now.

Ms C. Tang, 34, a data analyst, said she had just bought Cathay’s Save Our Screens bundle of 10 tickets for $100, with the intention of using them at the Jem outlet.

“To use the vouchers, I have to wait a week or two after a movie is released. But with fewer and smaller Cathay cineplexes, there will be fewer movie timings after the first week or two of release. This really inconveniences me,” she told ST.

A 29-year-old human resources executive, who wants to be known only as Mr Tay, said cinemas are “dropping like grapes” in Jurong, adding that he was particularly disappointed with the closure of Cathay in Jem, a “pretty upscale” outlet.

Film critic Jedd Jong, 32, said: “It’s a shame the cinema at Jem has closed. I think it is a larger symptom of fewer people going to cinemas.”

With the latest closure, Cathay Cineplexes has four remaining outlets – Causeway Point in Woodlands, Downtown East in Pasir Ris, Century Square in Tampines and Clementi 321 in Clementi, which

mm2 acquired from EW Cinemas, a subsidiary of Eng Wah Global, in November 2024

.

In a bourse filing on Feb 3, mm2 said Cathay Cineplexes

also received letters of demand

from the landlords of its outlets at Century Square and Causeway Point, requesting close to $2.7 million in rental arrears and legal costs.

Both Century Square and Causeway Point are owned by Frasers Centrepoint Trust.