Aberdeenshire Council invests £200,000 in Peterhead cinema development

Aberdeenshire Council has approved funding in support of a new £2million cinema development in the heart of Peterhead town centre.The Stage 2 £200,000 cash injection from the council’s Property Investment Fund was awarded to Irish firm Melcorpo Property Arc Cinema Ltd by members of the council’s Infrastructure Services Committee (ISC) on Thursday, October 3.The fund is a tool which enables the council to assist the delivery of its Regeneration Strategy to encourage improvements and bring prominent vacant buildings back into use. A £10,000 Stage 1 grant was awarded to Melcorpo earlier this year to conduct a feasibility study into the potential cinema development at the former Gala Bingo premises on Peterhead’s Marischal Street.Councillors were advised that the feasibility was completed by cinema development professionals and demonstrated the long-term viability of a cinema at this site. The study concluded that a five-screen cinema could be supported by the wider marketplace of Peterhead on a sustainable basis. It also highlighted a capital funding gap above the £100,000 limit set for the Property Investment Fund.Aberdeenshire Council’s Head of Economic Development, Belinda Miller, described it as a “significant opportunity” for Peterhead.She told councillors that due to the transformational impact the development was likely to have on the town centre – particularly in terms of its evening and weekend economy – it was decided to recommend a larger grant award to enable the project to proceed.Due diligence checks have been carried out on parent company Melcorpo Commercial Properties Unlimited which have proved satisfactory.