Movie theater facilities, once seen as a headache as audiences dwindled, are trying to reinvent themselves. New owners are emerging, judging that they can be used as churches, studios, or sports facilities.
On the 12th, commercial real estate proptech (a portmanteau of property and technology) corporations RealtyPlanet said the transaction for the "former CGV Songpa branch," for which it served as sale manager, had been completed. The former CGV Songpa branch was a theater located on the 10th and 11th floors of the Garden Five mixed-use shopping mall in Munjeong-dong, Songpa District, Seoul. The net floor area is 8,925 square meters (about 2,700 pyeong).
The buyer is the church corporation "Saeroun Church." Accordingly, the theater will be converted into a worship space going forward. The decision to acquire the theater for use as a church worship space stemmed from the judgment that the theater's mezzanine structure makes it easy to utilize as a large assembly venue. A RealtyPlanet official said, "We proceeded with the sale, judging it suitable for a religious facility given that it can accommodate more than 5,000 people and has ample parking."
Game company KRAFTON recently purchased the "Megabox Square" building in Seongsu-dong, Seoul. The acquisition price is around 240 billion won. The plan for the Megabox Square building is to create a cultural space and office facilities that combine the online game "Battlegrounds" intellectual property (IP) with attractions (rides available at specific tourist spots). KRAFTON is acquiring asset with the idea of creating "KRAFTON Town" in Seongsu-dong. In 2021, it formed a consortium with Mirae Asset Global Investments and bought Emart's Seongsu-dong headquarters, with a total floor area of 99,000 square meters (about 29,900 pyeong), for about 1.2 trillion won.
"CGV Piccadilly 1958" in Jongno District, Seoul, has since 2022 converted some auditoriums for use as sports and leisure facilities. Leveraging the high ceilings—a strength of auditoriums—it has been transformed into a climbing gym.
Theaters are also being used as rental venues for corporations. Nestlé Korea recently held a new product briefing at CGV in Yeongdeungpo, Seoul. Considerations included the ability to screen video, audio facilities that enable interactive communication with Q&A, and the capacity to accommodate a large number of people.
In the retail industry, the trend of movie theater facilities—once treated like ugly ducklings—being sold off one after another is being viewed positively. That is because theaters and cinema facilities had long been regarded as a nuisance. A retail industry official said, "Theater facilities could emerge as competitors to small hotel banquet halls."
As movie audiences steadily grew, the theater business expanded its branches, but it went downhill as online video services (OTT) such as Netflix spread. The outbreak of COVID-19 made matters worse.
In the process, real estate funds that had acquired theater facilities shifted to selling, and listings piled up. Attention focused on the high expense of removing installed theater fixtures and redesigning, as well as poor space efficiency. A real estate industry official said, "As attempts to make the most of theater facilities' characteristics proceed on multiple fronts, we are finding answers to some extent."