In the 1930s, a cinema was already in operation in Berkhamsted High Street, the Court Cinema on the corner of Water Lane. It was acquired around 1930 by the Shipman & King cinema circuit, who also planned to open a second cinema in the town. Originally they intended to build on a site at the eastern end of town on the corner of Swing Gate Lane, but in 1936 S&K acquired Egerton House, a site closer to the centre of town which had spacious grounds for a cinema and car park. Egerton House was demolished and the Rex Cinema was erected in its place. The cinema was opened on 9 May 1938 by Viscountess Davidson, and the first screening was the film "Heidi", starring Shirley Temple.