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MESSAGE (ENGLISH VERSION) | |
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Lease agreement for 7 Cinema City multiplexes
The Board of Managing Directors of Cinema City International N.V. (the
"Company") informs that on 2 October 2007 the Company signed the lease
agreement with the company Globe Trade Center (“GTC”) to open
multiplexes in each of GTC’s seven shopping malls to be developed across
three countries.
Under the agreement, Cinema City will lease space from GTC to operate 1
multiplex in Częstochowa, Poland, 3 multiplexes in Bulgaria (in Varna,
Borgas and Stara Zagora) and 3 multiplexes in Romania (in Arad,
Bistritza and Galati). In total, under its agreement with GTC, Cinema
City plans to build approximately 65 new screens in three countries.
No. City Leased area (ca. in sqm) Number of screens
1. Częstochowa 3,000 8-10
2. Varna 3,500 10-12
3. Burgas 3,000 10
4. Stara Zagora 2,200 8
5. Arad 3,000 8-10
6. Bistritza 1,800-2,000 6-7
7. Galati 1,500-3,000 8-10
All 7 new projects are planned to be opened within the next 18 to 36
months.
The lease agreement has been concluded for ten years with three options
of extending a lease term, each time for another five years, and
contains standard provisions, typical for agreements of such kind. The
Company will be required to pay a monthly rent on a market standards
consisting of a fixed rent calculated on the basis of the leased area
and the management fee for the benefit of the management company of each
shopping mall.
Cinema City has already partnered with GTC, having opened 2 multiplexes
in GTC sites in Poland, one at Galeria Mokotów in Warsaw and one at the
Kazimierz Mall in Krakow. In addition, the Company has already signed an
agreement to develop another multiplex in Bucharest Romania.
Legal grounds: Art. 56.1.1 of the Act of 29 July 2005 on public offering
and conditions governing the introduction of financial instruments to
trading in the organized trading system and on public companies.
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