Multiuser multiple input multiple output (MU-MIMO) wireless communication system provides substantial downlink throughput in millimeter wave (mmWave) communication by allowing multiple users to communicate at the same frequency and time slots. However, the design of the optimum beam-vector for each user to minimise interference from other users is challenging. In this paper, based on the concept of signal-to-leakage plus noise ratio (SLNR), we analyze the ergodic sum-rate capacity using statistical Eigen-mode (SE) and zero-forcing (ZF) models with Ricean fading channel. In the analysis, the orthogonality of channel vectors between users is assumed to guarantee interference cancelation from other cochannel users. The impact of the number of antenna elements on the achievable sum-rate capacity obtained by dirty paper coding (DPC) method considered as a nonlinear scheme for approximating average system capacity is studied. A power iterative precoding scheme that iteratively finds the most dominant eigenvector (optimum weight vector) for minimising cochannel interference (CCI), that is, maximising the SLNR for all users simultaneously, is designed resulting in enhancement of average system capacity. The average system capacities achieved by the proposed power iterative technique in this study compared with the singular value decomposition (SVD) method are in the ranges of 5–11 bps/Hz and 1–6 bps/Hz, respectively. Therefore, the proposed power iterative method achieves higher performance than the SVD regarding achievable sum-rate capacity.