Mexican multiplex chain Cinepolis is continuing with plans to invest Rs1,700 in India for its cinema business over the next seven years.
With an Indian subsidiary already established, it is now in talks with mall developers to open 500 movie screens by 2016, with the first multiplex due to open by the second half of this year.
With plans to enter just the emerging markets the operator is also looking at Brazil and Peru among other South American countries, after India. At the same time, mall owners in India are currently having to renegotiate rentals with retailers due to the slowdown of the economy.
According to local newspaper reports, the rent a real estate commands should have a correlation to the benefits it accrues to the retailer. However, retail sales are speculative in nature.
This is where percentage rent, or revenue sharing in common parlance, plays a vital role and a revenue sharing agreement is beneficial to the mall owner and retailer.
