Seek Investors for Multiplex

The investment project envisages a construction of a multiplex in the city of Minsk (Belarus). Required investments - 9,000,000 $. Payback of the Project 2,5-3 years. After the company will reach the project level (2016 year), the net income will be $ 3.2 million per year.

The investment project envisages a construction of multiplex, with 10 cinema halls, 150 sits in each, for viewing movies. Multiplex will be located in part of a multifunctional shopping and entertainment complex in the heart of the city, which make it particularly attractive located and convenient for the visitors. It is expected to organize a bar in the foyer of the cinema. Total building area - 3000 sq. m. TRC for accommodation of the cinema complex is in the design stage and the completion is scheduled for 2013.

Today the city there is only one cinema viewing organization which holds 100% of the market. There are 15 working cinemas (the total number of cinemas - 22), which are built in the Soviet Union’s period. According to statistics, to market saturation cinema services in the city with a population of 1.8 million people (the population of Minsk in 2009), there should be more than 100 modern cinema. Thus the market is filled to 15%.

Economic Project Indicators
1) Investment costs
- Buying of the area - $ 4,500,000 (3 thousand square meters)
- Equipment and interior decoration of the cinema halls (projection, sound equipment, chairs, sound insulation, etc.) - $ 4,000,000;
- Decoration of the Foyer - 220 000 $;
- Setting of cinema bar - 30 000 $
- Setting of cash center - 50 000 $;
- Marketing costs (outdoor advertising, advertising in mass media: radio, TV, press) - 200 000 $
Now, the construction stage of the TRC, where the multiplex will be located the developer steel did not identify the terms of the transfer of facilities for the multiplex. So lets consider 2 options of ownership: renting and buying the space.
With the buying of premises, additional costs would amount to $ 4,500,000;
With renting, the payments should be pay by the cinema’s payroll ($ 720,000 per year).
Total investments: - $ 9,000,000
2) Expected profit
Articles and income of the multiplex divided into the following components: income from movies viewing - 60%, income from the cinema-bar - 40%.
- Film viewing
After the multiplex get the full capacity, the number of tickets sold, will be 1499190 peaces per year. The resulting income: $ 3,341,300 per year.
- Cinema-bar
Customers of the bar will be approximately 70% of the visitors. The average price of a check is 3,5 $.
Gross profit: 1499190x3, 5x0, 6 = $ 3,673,015 per year
The surcharge of the bar to offer visitors products is 65%.
Total profit: $ 1,446,945 per year
Total revenue from rental and bar is $ 4,788,245 per year.
Taking into account tax deductions, total costs, employees salary 3,300,536 $
Total:
Net profit: $ 3,300536 per year
Investment made $ 9,000,000
Payback period - 2,7 years
Conditions offered by the investor
The company's share 30%.
There is a business plan developed for the project.

Contact us on Merar if you are interested investors.