THE future of Newport’s remaining Cineworld cinema looks to have been secured with a cut price rental agreement secured.

The troubled chain has looked to agree discounted rents with landlords as part of a restructuring plan, put forward by the four firms that make up the UK arm of the world’s second-largest cinema chain to allow them to continue trading.

As a result it has been agreed cinemas in some of the chain’s 101 locations will be relieved from paying rent while some others will close in line with plans announced in July.

The Newport branch is based at the Newport Leisure Park is owned by Monmouthshire County Council that purchased the site in the neighbouring city council area for £22.5 million in March 2019.

Details of the rental agreement were provided to a Monmouthshire council scrutiny committee on Monday by Nick Keys the head of its landlord services.

Mr Keys said the restructuring plan had been approved by the High Court last week.

The Newport Leisure Park Cineworld is one of 35 sites which it’s considered could be profitable with a reduced rent.

The final reduced rental figure is under review and Mr Keys described it as “sensitive”.

He said the restructure will be in place for three years with the reduced rent to be paid from Christmas, three months after the deal was approved.

His report to the council said Cineworld’s local management has reaffirmed Newport’s “strategic importance” due to its location, limited local competition, free car parking and footfall.

Labour councillor for Caldicot West End, Jill Bond, said she was concerned the Newport Leisure Park still hadn’t made the two per cent annual return on investment predicted when it was purchased, and questioned the agreement with Cineworld.

Mr Keys said the Newport Leisure site is covering the council’s borrowing costs.

The report to the council stated the leisure park is delivering a net return of 1.41 per cent on the investment. The committee was also told only two of the 11 units on site are currently vacant and talks are ongoing with a potential tenant its anticipated will be trading by Christmas.