MAKE MONEY? NO, WE'RE JUST SAVING MONEY
Faith Teo
1128 words
17 September 2007
The New Paper
English
Copyright 2007, Singapore Press Holdings Limited
Deacon says in long run, it is cheaper than renting or building a church
IT doesn't seem like what a church would normally do.
Investing $280 million to build a mega-complex that has a lifestyle, entertainment and cultural theme.
And New Creation Church raised more than just eyebrows a week ago when its business arm, Rock Productions, announced that it would partner CapitaLand to develop the mega-mall at Buona Vista.
For the project, public-listed CapitaLand will pump a further $380 million into the retail and entertainment zone.
Such a big commercial venture is probably a first for any religious organisation in Singapore.
While other churches have bought and sold properties and land, such transactions are rare, and not known to exceed $50million. Past reports also showed that no church has actively sought to develop a commercial development.
When contacted by The New Paper on Sunday about the project, Rock Production's director Matthew Kang, who is also a deacon at New Creation Church, said the church does not see the project as a way to make heaps of money.
'If we were really into profit maximising, we would have taken over the retail side too, instead of passing it on to CapitaLand.'
DIFFERENT ZONES
The new complex will be split into two different functional zones.
The church will concentrate on the civic and cultural zones, the highlight of which will be a state-of-the-art auditorium that can seat 5,000.
Mr Kang said he considers this significant investment a practical move.
The church, he said, has chosen to remain 'homeless' since it started in 1984, in favour of investing its money elsewhere. In 1999, Rock Productions started running the 1,200-seater Rock Auditorium at Suntec City, using it for church services and renting it out for seminars and performances.
In 2001, it acquired the East Coast Recreation Centre for $10 million and turned it into Marine Cove, a recreational centre housing food and beverage outlets.
These venues generate income for the church, which also takes donations from members. It also runs a travel agency and early education centres.
Mr Kang's team had decided on One-North after surveying several locations.
He said: 'We had a few options. First, continue using the Rock Auditorium and several other spillover venues for our members, such as the Suntec City Convention Centre. Second, build a church. And third, develop a larger auditorium in a commercial complex that can also be rented out for events.
'In the end, we found that the third option was the most practical and sensible. We have a ready anchor tenant in New Creation Church.
'Instead of paying rent to others for using their venues like we are doing now, the rental will come back to us.
'With 15,000 members, we will also provide the numbers for retail and food and beverage outlets.'
Mr Kang did some number-crunching to show the rationale behind the decision.
He said: 'Currently, with the Rock Auditorium and other venues we use, we pay $477,000 in total rent a month. In 60 years, we'll have paid more than $340 million.
'Renting the Indoor Stadium for one Sunday costs $160,000, including sound and video equipment. Over 60years, that will come up to more than $460 million.
'Now we have a 60-year lease on the land at Buona Vista, and the auditorium is ours, 24/7, unless it's rented out.
'It's just a practical decision.'
And it was not a hasty one, he stressed.
The church had hired IMG Artists, an international arts management firm, to do a feasibility study more than two years ago.
IMG Artists' director of Asia Pacific operations, MsMindy Coppin, said her firm had surveyed venue hirers and event promoters to find out what they want. The firm concluded that there is a regional demand for a mid-size auditorium venue away from the city with a 5,000 capacity.
Ms Coppin said: 'There are acts bypassing Singapore, for example, because there is no such suitable mid-size venue.' The Indoor Stadium is suitable for audiences numbering about 10,000, while the Esplanade seats about 2,000.
To keep it flexible, the new auditorium will be designed for a quick change-over between events, with movable stages, equipment and seating, she added.
Besides the performance venue, there will also be two banquet halls, each able to seat 900 people, and several smaller meeting and function rooms. Smaller rooms will cater to the changing, rehearsal and make-up needs of performers.
Mr Kang said the church held an extraordinary general meeting with its members a few months before submitting the bid for the Buona Vista plot.
OVERWHELMING SUPPORT
'There was overwhelming support for it, because they know we wouldn't do this if we weren't sure of the feasibility,' he said.
'They know that whether we do this or not, we have to sink a sum of money into renting venues for our services, or building a church. It's admittedly a huge investment, but in dollars and cents, this is the best option.'
The church is happy to share the venues with others who want to rent it for their own events, Mr Kang said, noting that organisations such as banks and companies had rented the Rock Auditorium in the past.
'We won't dominate the new venue. We hope to use it the whole of Sunday and during one weekday but, if there is demand for the auditorium, we'd be happy to have our services elsewhere on that particular date.'
Mr Kang was quick to add that the church is not interested in competing with other available performance venues.
'We are not out to cannibalise. There is just a demand for something like this, and we are in a position to fill it.'
12 floors, 54,000 sq m
JTC Corp awarded tender to Rock Productions to build, lease and operate integrated hub with civic, cultural, retail and entertainment zones.
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By that reasoning provided by the deacon, churches can now use the church money to start investing in whatever joint ventures or business they want under the guise of "saving money for the church". After all, if investing in unit trust or properties can help defray the cost of rent, why not? And the good thing is, church members pay for it.
