Macau property investor and developer William Kuan Vai Lam is splashing millions not only in the revamp of the defunct Cantonese opera house Cheng Peng Theatre, but also in the makeover of the decrepit cinema and mall complex Capitol Theatre, amid property occupation disputes from some of the vendors working in the property. William Kuan, known as the developer of the residential project Windsor Arch via his company Victory Real Estate Development Co Ltd, has begun acquiring the city’s defunct cinema complexes – the Cantonese opera house Cheng Peng Theatre and Capitol Theatre four years ago, both located in the downtown tourist spot in Macau peninsula. Cheng Peng Theatre, known as the first theatre opened in Macau during the late 19th century, had been a major centre for playing Cantonese operas. But the venue was shut down in 1992. In an interview with Business Daily, Mr Kuan told that he has leased the theatre from its owner Chap Seng Tong Company Ltd with a 30-year term – though the property boss was reticent about the cost of the lease. “It was in a Korean film that was shot beautifully of Macau’s casinos and also Cheng Peng Theatre that I noticed the venue,” Mr Kuan remarked, “It would be a waste if we could not use the theatre again. Then a chance came when Chap Seng Tong agreed to lease me the theatre with a 30-year term.” Chap Seng Tong, which used to be a non-profit association which later turned into a company, holds ownership of several properties located at Rua da Felicidade where Cheng Peng Theatre is located nearby. Rua da Felicidade, now a street lined with eateries, inns and souvenir shops, was once a well-known hub for gambling, opium houses and prostitution. Mr Kuan’s company Companhia do Centro Cultural de Ching Peng Lda has taken over the renovation works of the theatre, and will also be responsible to operate the theatre after the project comes online. “After we’ve acquired the theatre, we have started some coordinating efforts with the Cultural Affairs Bureau to renovate the space,” Mr Kuan said, noting that the bureau is now responsible for leading the architectural designs and conducting some preservation works of the historic relics uncovered at the theatre site. Mr Kuan budgeted about MOP30 million (US$3.76 million) for the renovation works for Cheng Peng Theatre, which would all be shouldered by his company. He expected the revamp process of the theatre will take about a year to complete. “Our agreed deal with the government is that we’ll have the performance space at the theatre prioritized for its cultural activities or festivals,” Mr Kuan told us. Cheng Peng Theatre, which totals a site area of 20,000 square feet, will have half of the space zoned as the theatre part designed with 600 to 700 seats, said Mr Kuan. “We would like to show films at the theatre, which at the same time can also serve as a space for Cantonese operas,” he said, “For the rest of the area of the Cheng Peng Theatre, we would also like to set up a museum themed at Cantonese operas, and to zone out some studio spaces to be leased for the local associations to rehearse dramas or other performances, as well as an area for cafes.” The property investor described the revitalisation project of Cheng Peng Theatre as a “non-profit” one, which his company would only seek to cover the basic operation cost when the theatre starts. “We’ll also apply for the Cultural Industries Fund to support our operation,” Mr Kuan said, “Afterall our project can also be categorized as a ‘cultural and creative’ one.” Locally-registered company applications, which belong to the sectors of “creative design”, “cultural exposition and performance”, “art collection” and “digital media”, can seek to gain either a direct subsidy or interest-free loan from the Cultural Industries Fund, which was only launched in summer of 2014. Decrepit cinema Compared to the lease and revamp for Cheng Peng Theatre, the renovation project of mall and cinema complex Capitol Theatre (or known in Portuguese as Centro Comercial Teatro Capitol) is a more complicated case as the now decrepit property has suffered from poor management for years, according to Mr Kuan and the vendors at the mall. “We started the acquisition [of majority ownership] of Capitol Theatre some three to four years ago,” Mr Kuan told us, “Eventually our company [Pak Man Hong Kuok Wa Development Ltd] and a few other individual investors have bought up more than 80 per cent of the property rights of the theatre.” Inside Capitol Theatre, now with a defunct cinema on the fourth and highest floor, there are 100-plus shop spaces inside the property. But most of these shop spaces are now vacated, with only a few working on the ground floor as well as the first to the third floor. By a majority ownership of the theatre, Mr Kuan and his partners have acquired the 380-seat cinema, a video game arcade located in the basement of the property and other 25 shop spaces. Again the property boss declined to disclose the acquisition cost involved with the majority ownership of Capitol Theatre, but he told that the renovation works of the property would cost about MOP20 million to MOP30 million. He expected that the revamp, which is starting soon, will take about only a year’s time. “After the renovation works, the complex will be turned into just like any other mall – we would like to see a food court on the ground floor, clothing retailers on the rest and a cinema on the top floor,” Mr Kuan said, “The cinema will be playing popular Chinese-language films.” In Macau, there are now only four cinemas: the UA Cinema in Galaxy Macau casino-resort, a cinema in Macau Tower, Cineteatro Macau and Cinema Alegria. Of these four cinemas, only the UA Cinema is located in Cotai – the rest are all situated in Macau peninsula. “We’ve signed a letter of intent with the estate agency Mcore Properties Investment Ltd to be our exclusive leasing agent for the shop spaces,” Mr Kuan said, “By that deal, we want to offer the tenants a rent level cheaper than the market rate.” Mr Kuan said his company has suggested Mcore to lease each shop space, of a size of around 100 – 200 square feet, at MOP2,000 to MOP3,000 a month. He added that his company is also looking to acquire more shop spaces inside Capitol Theatre. Vendors’ disputes But Mr Kuan’s revamp plan for Capitol Theatre was not welcomed by some of the snack vendors working on the ground floor of the complex. Upon a visit to the theatre, Business Daily understood that there were four vendors embroiled in a lawsuit, filed by the property management committee of the theatre against these vendors’ “illegal occupation of space”. Mr Kuan’s company Pak Man Hong Kuok Wa Development Ltd is also a member of this property management committee. According to Mr Kuan, the lawsuit was filed over the cause that the vendors had been “illegally” using the common area of the theatre for their business. Ms Kou, one of the four vendors sued by the committee, told Business Daily that she would refute the case. All of these four vendors were working on the ground floor of the theatre. “We all have evidence of paying monthly rentals to the [former] property management company, and we have used the space to run the business here since 1998,” said Ms Kou, who declined to tell a full name. The former property management company Ms Kou referred to was Hang Kei Property Management. Hang Kei has already ceased managing the Capitol Theatre since late October this year. The property management committee, led by Mr Kuan’s company, is looking to recruit a new property management company this month. “We’ll settle the disputes [with the vendors] through lawsuit,” Mr Kuan said, “This would not impact our renovation works for the theatre.” Mr Kuan targeted to see the renovated theatre to start business by the end of 2016. The property boss also said that he was not worried of the retail prospect for Capitol Theatre, despite the neighbouring shopping malls Ginza Plaza and Sun Star Plaza are both seeing poor foot traffic from shoppers. “We did not only look at the revamp of Capitol Theatre in the aspect of profit for the short term,” said Mr Kuan. He added that he would like to see the renovated theatre to be a place not only playing commercial films, but to showcase and promote local productions during off-peak times as well.
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