Theater collector

Mackintosh trumps rival, buys land and 2 playhouses

By MATT WOLF

LONDON -- Producer Cameron Mackintosh has quietly added to his portfolio of theaters with the purchase last month of a block of prime Shaftesbury Avenue real estate in London's West End that includes the Queen's and Gielgud Theaters.

The news brings to five the number of West End playhouses operated either solely or jointly by Mackintosh. That roster includes the Prince Edward, the Prince of Wales and the Strand, all three of which are in shared ownership with First Leisure Corp.

The latest sale was effective March 19, said Martin McCallum, Mackintosh's managing director, who said the purchase price was "dramatically lower" than the £15 million ($24 million) figure cited in the British press.

Trump card

Mackintosh's company bought a 150-year lease on the site from freeholders Christ's Hospital, a charity based in suburban Surrey that has owned the block of land for centuries. In so doing, Mackintosh trumped the site's previous lessee, Stoll Moss Theaters, which will continue to operate the playhouses until spring 2006, as per its existing contract.

Speaking separately, Stoll Moss chief exec Richard Johnston told Daily Variety that his company had made its own full offer to Christ's Hospital, which was trumped by Mackintosh.

"While it is disappointing," Johnston said, the sale in no way implied a desire by Stoll Moss to lessen what has been a 10-theater hold over the West End that includes the London Palladium, Her Majesty's and the Theater Royal, Drury Lane.

Beefing up

"We will be seeking to strengthen our portfolios," Johnston said.

The timing of the sale was crucial. Under Britain's landlord-tenant act, Stoll Moss would have automatically been entitled to an extra 14 years on its lease had Christ's Hospital waited until five years or less -- i.e. from spring 2001 on -- before that lease expired.

"This was an opportunity that came up, which Cameron took," said Johnston. "He came in with a higher bid."

McCallum, meanwhile, was busy scotching rumors that the purchase was motivated by Mackintosh's wish to outdo the impresario's former colleague, Andrew Lloyd Webber, in the real estate sweepstakes. (Lloyd Webber's Really Useful Group has shared, or full, ownership of three West End theaters -- the Palace, the New London and the Adelphi.)

"It's always made good press to run a story about competition between Andrew and Cameron," said McCallum. "We all know, actually, they're the best of friends."