[UPDATED] MovieTowne repossessed for breach of lease

TRINBAGO Commercial Development Co Ltd (TCDC) is condemning what it calls the high-handed, illegal and bullying actions of the Port Authority of TT (PATT) and the Port of Spain Infrastructure Development Company (POSINCO) with regard to its MovieTowne multiplex, entertainment and commercial centre.

On August 23, POSINCO took possession of the Port of Spain-based MovieTowne premises, after what it said was years of breaches of the deed of lease of the property. Sources told Newsday there was a substantial figure in rental arrears, from May 2021.

In a release, TCDC said it had offered to “settle all outstanding rental sums which are not in dispute and attempted to pay such sums by cheque. The cheque was returned notwithstanding current discussions to settle all matters including disputed amounts.

“PATT and POSINCO thereafter attempted illegal and unlawful entry via its private agents. The actions of POSINCO and PATT have been described as unjustified and illegal acts by experienced external legal counsel, who shall shortly commence legal proceedings against PATT and POSINCO inclusive of injunctive relief to ensure redress to TCDC and the protection of its tenants and employees.”

TCDC reassured its patrons that the MovieTowne complex continued to be open and its team would spare no effort to ensure their safety and maintain and enhance the premium service levels that families and clients have come to expect and deserve.

POSINCO said it had exercised its right of re-entry and had taken possession of the premises leased to TCDC, also known as MovieTowne.

“This re-entry exercise was undertaken because of breaches of the terms and conditions of the existing deed of lease between POSINCO and TCDC.

“POSINCO has been in discussions with TCDC for several years regarding the said breaches in an effort to avoid today’s (Friday) outcome, while maintaining its rights under the deed of lease to re-enter. Those discussions have not borne fruit.”

The company said it had tried to carry out the re-entry peaceably and in a manner that would be the least disruptive to the tenants and other stakeholders of MovieTowne and would continue to treat the matter with the sensitivity required, and in accordance with the law.

Newsday was told when the bailiffs went to take walk-in possession of the compound, they were met with some pushback, but this was handled, and they were able to take control.

Photographers from two media houses were attacked by MovieTowne security when they tried to document what was happening.

Staff were removed from their offices and would not be allowed to return. The bailiffs said tenants and tenant companies would not be removed, as they did not want to disrupt their operations. The movie theatre would be allowed to operate as normal.

Newsday was told there may be a grace period during which the rent could be paid but this would be at the discretion of POSINCO.

Ryan Chin, son of MovieTowne owner Derek Chin, said he did not want to make a comment at the time, as he was trying to contact his father. Newsday understands Derek Chin is not in the country.

Newsday contacted POSINCO CEO Lenin Oliviere by phone and e-mail to clarify the breaches of the lease, the amount of the rent arrears, and other matters. No response was received up to publication time.

Attempts to get a comment from PriceSmart, the largest tenant on the property, were also unsuccessful.

Celebrated entrepreneur Derek Chin was in the news in May, as Guardian Media reported his company owed the Board of Inland Revenue (BIR) $93 million in unpaid taxes and penalties over the last 20 years. At the time, he said a payment plan had been worked out.

Multiple attempts by Newsday to reach the BIR to see if there was an update on this matter were unsuccessful.

Newsday tried contacting the owners of JTA Supermarkets, which it understands is a partner with Derek Chin at C3 Centre – an entertainment and shopping facility – in San Fernando, which is not a subject of the levy. No response to a request for comment was received.

There are two other MovieTowne branches in TT – San Fernando and Tobago. There is also a branch in Guyana, which was opened in 2019. Newsday was unable to ascertain if there were any difficulties at these branches.

Derek Chin has previously said the entertainment chain had endured an almost crippling economic fallout from the covid19 pandemic.

It closed its Chaguanas multiplex in 2020, due to an inability to negotiate rental prices with the landlord, Price Plaza owners Endeavour Holdings Ltd (EHL).

The Tobago branch remains open, but also suffered considerable losses.

In May 2023, ticket prices were increased at all MovieTowne multiplexes. In Port of Spain and San Fernando, adult (regular) tickets were raised to $60, and $70 for 3D, children's tickets for regular movies were raised to $50 and $60 for 3D, while senior citizens paid $50 for regular movies and $60 for 3D.

In Tobago, adult tickets for regular movies were raised to $50 and $60 for 3D, children's tickets for regular movies were raised to $40 and $50 for 3D, and senior citizens were charged $40 for regular and $50 for 3D.

In March, a dinosaur park was launched at the Port of Spain property between MovieTowne and the Marriott hotel.

In a March 14 Business Day interview, Chin said, “MovieTowne survived the devastation of the pandemic by instituting a very tight, lean-and-mean approach, cutting out any excesses and streamlining our operations.”

He said MovieTowne’s Port of Spain branch carried much of the financial burden from other locations, owing to what set it apart from other cinemas when it opened in 2003.

“(We worked) with our loyal tenants, provided rental support and reduced our rents in order to keep them afloat.

"We had a few that could not survive and had to close down. So unfortunate. There was no assistance from the government, the banks did not support us.

“(They) extended our payment terms but at the end, we still have to meet these commitments.

“It was a very rough time, with the rigid health restrictions and the state of emergency, which literally shut down our business.”

Chin said the company started on a good footing and grew exponentially in the past 21 years, thanks to "a good listening ear," reliable tenants and critical thinking.

To be successful, he said, “You have to be changing and diversifying your businesses. Anybody who keeps this one business all the time is not going to do very well, not going to grow.”

­­– With reporting by Gregory McBurnie

This story has been adjusted to include additional details. See original post below.

THE Port of Spain Infrastructure Company (POSINCO) took possession of the premises of MovieTowne on August 23, after what it said was years of breaches of the deed of lease of the property.

In a statement, the company said it had exercised its right of re-entry and has taken possession of the premises leased to TT Commercial Development Company Ltd (TCDC), also known as MovieTowne.

“This re-entry exercise was undertaken as a consequence of breaches of the terms and conditions of the existing deed of lease between POSINCO and TCDC.

“POSINCO has been in discussions with TCDC for several years regarding the said breaches in an effort to avoid today’s outcome, while maintaining its rights under the deed of lease to re-enter. Those discussions have not borne fruit.”

The company said it had tried to carry out the re-entry peaceably and in a manner that would be the least disruptive to the tenants and other stakeholders of MovieTowne, and said it will continue to handle the matter with the sensitivity required and in accordance with the law.

Witnesses told Newsday that when the bailiffs went to take walk-in possession of the compound, they were met with some pushback, but this was handled and they were able to take control.

Photographers from two media houses were accosted by security personnel apparently belonging to MovieTowne when they tried to document what was happening.

Newsday was told the office staff were removed from their offices and would not be allowed to return. Sources said the tenants and tenant companies would not be removed and their operations would not be disrupted, and the movie theatre would be allowed to operate as normal.

Sources told Newsdaya substantial figure in rent payments has been outstanding since May 2021.

Ryan Chin, son of MovieTowne owner Derek Chin, said he did not want to make a comment at this time.  Derek Chin could not be reached for comment.

With reporting by Gregory McBurnie