Bexley (Parliament Politics Magazine) – Bexley Council sale of the Broadway Leisure Complex raises concerns about the future of Cineworld and the entertainment scene, raising uncertainty among locals.
The Broadway Leisure Complex’s long-term leaseholder, Aviva Life & Pensions UK Limited, will purchase the Cineworld movie theater, Buzz Bingo, and multiple dining establishments.
With 223 years left on the lease, Aviva has owned the property since 1998.
The council doesn’t get much money from the property because the corporation just pays peppercorn rent.
The council has finally accepted Aviva’s offer to buy the freehold, which was made in the middle of 2024.
The location has been designated for redevelopment in Bexley’s Local Plan.
According to council papers, the facility is outdated and its layout does not blend in well with the town center.
According to the Local Plan, a mixed-use, residential-led development might include at least 130 additional residences on the property.
Subject to planning approval, the ground and first floors would house retail and commercial spaces.
The local plan says:
“This is a smaller town centre site that is located at the prominent junction of Arnsburg Way and Broadway. It is occupied by a large ‘big box’ cinema development as well as other leisure uses, and a car park sits at the eastern end of the site.
Whilst these uses make a significant contribution to the town centre’s leisure offer, the building itself is dated and relates awkwardly to the street with blank façades.”
Redevelopment of this site creates the opportunity for a residential-led mixed use development in Bexleyheath Town Centre that is within walking distance to Bexleyheath bus hub and in one of the best-connected areas of the borough, helping to draw the town centre eastwards along Broadway towards the Civic Offices, creating a more positive east-west connection and furthering the improvements made by the neighbouring Eastside Quarter development.
The complex also has a multi-story parking structure with 229 spaces.
A Car Park Management Agreement currently governs its management by the council.
According to the council’s assessment, Aviva or any subsequent owner may end this agreement with six months’ notice after assuming full control.
In recent years, Cineworld has had to deal with financial difficulties, including as rent reductions and restructuring initiatives.
The agreement, which has been in effect since 1998, permits the Council to run the parking lot as a public space, keeping the profits while paying Aviva a fixed charge. The Council is also in charge of maintenance and repairs.
The deal, which was initially scheduled for 25 years, has been extended to October 2028, with the possibility of additional five-year renewals unless Aviva chooses to terminate it.
The arrangement is in effect until it is terminated because it functions independently of Aviva’s lease.
Concerns regarding the future of Cineworld and other establishments at the location are raised by the transaction. Since its opening in 1998, Cineworld has been a part of the Broadway Leisure Complex.
The long-term viability of the movie theater and other tenants is still unknown. This is a ten-year lease for Buzz Bingo.
We have requested additional comments from Aviva, Cineworld, and Bexley Council.
What impact will the sale of the Broadway leisure complex have on Cineworld’s financial stability?
Due in large part to COVID-19-related closures and continued recovery issues, Cineworld has experienced severe financial troubles, with debts approaching £4 billion.
The corporation has been working on restructuring plans in the UK since declaring bankruptcy in the United States in 2022.
A court-approved strategy to equalize rents and remove non-viable properties is one of the restructuring initiatives in which Cineworld has been involved.
By cutting expenses and concentrating on more promising sites, this procedure seeks to stabilize the business’s financial situation.
Cineworld may not be directly impacted by the Broadway Leisure Complex sale unless it results in modifications to the site’s use or leasing conditions.
However, Cineworld’s financial viability can be impacted if the new ownership leads to higher rentals or altered operating circumstances.
