Current report No. 8/2013 of 9 May 2013: Execution of binding preliminary lease agreements with AFI Europe for two multiplexes in Romania.
The Board of Managing Directors of Cinema City International N.V. (the "Company") informs that Cinema City Romania SRL (“Cinema City Romania”), a wholly-owned subsidiary of the Company incorporated and existing under the laws of Romania, executed preliminary binding lease agreements with S.C. PREMIER SOLUTIONS & TEAM S.R.L. and S.C. VEROSKIP TRADING S.R.L, both subsidiaries of AFI Europe, companies incorporated and existing under the laws of Romania.
In accordance with the above-mentioned agreements Cinema City Romania will lease:
- approx. 3 600 sqm in the shopping center AFI Palace B.NOI in Bucharest, constructed by S.C. PREMIER SOLUTIONS & TEAM S.R.L.. The future Cinema City multiplex will have 14 screens. The Company plans to open this cinema in the 4th quarter 2014.
- approx. 1 900 sqm in the shopping center AFI Palace Ploiesti in Ploiesti constructed by S.C. VEROSKIP TRADING S.R.L. The future Cinema City multiplex will have 6 screens. The shopping center is currently under construction and the Company plans to open this cinema in the 4th quarter 2013.
The lease agreements have been concluded for ten years with three options of extending the lease term, each time for another five years, and contain standard provisions, typical for agreements of such kind. The Company will be required to pay monthly rent on market standards consisting of 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.