A UNIT of SM Investments Corp. in charge of the developer’s planned arena in Pasay City will forego rental fees and instead just collect a share of revenues from event organizers in a bid to lure more business into the new development.
“It’s a risk we’re willing to take if it will mean higher patronage and revenues in the long run. We want to be able to establish a long-term partnership approach with sponsors and promoters,” Nicole Mariz C. Deato, senior manager for business development at West Avenue Theatres Corp., told BusinessWorld on the sidelines of the project’s launch earlier this week.
West Avenue Theaters is a unit of SM Investments mall arm SM Prime Holdings, Inc.
The P3.5-billion, six-storey Mall of Asia (MoA) Arena is seen to seat 20,000 and will feature a sports bar, four merchandise stores, and two restaurants.
This makes the MoA Arena larger the Smart Araneta Coliseum in Quezon City. Built in 1960, The Smart Araneta Coliseum can seat as much as 14,775 for a basketball game, according to its Web site.
To compete, SM Investments will go solely for a straight percentage commission system based on a set matrix.
“Clients will only have to pay a very competitive utilities fee, mostly for air-conditioning. We are willing to take a leap of faith and in a way, show our sincerity in providing a world-class venue and event center that is the MoA Arena,” Ms. Deato said.
Construction is reportedly on schedule following its topping-off ceremony last month.
The site will join the MoA Open Concert Grounds as SM’s other major event venue when it opens in May next year, Ms. Deato said.
The MoA Arena also has a live-beaming capability to any local SM Cinema, advanced internal crowd and traffic control, and is wi-fi ready.
Several foreign and local entertainment events are already lined up to use the arena by the second half next year, Ms. Deato said, citing the University Athletic Association of the Philippines (UAAP) and National College Athletic Association basketball games.
The Sy-led firm aims to have bookings fill up 80% of the calendar for the second half of 2012. So far, the space is already 58% booked, Ms. Deato said.
“If possible, we also hope to have the Philippine Basketball Association play its conference games here starting next year,” said Armin Brian M. Sebal, SM sports manager.
A ticket to a basketball game at the MoA Arena will cost an average of P100 to P150, while a concert ticket will cost an average of P5,000 to P7,000 apiece, Ms. Deato said.
SM Investments, the holding company for the Sy-led SM Group, has five core businesses: retail, malls, banking, property, and hotel and entertainment.
SM Prime shares rose by 2.95% to P12.56 yesterday from P12.20.
SM Investments’ shares similarly climbed by 2.35% to P522.50 apiece from P510.50 at its previous close.
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By: Franz Jonathan G. de la Fuente
Source: Business World, Oct. 13, 2011
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