Cinema City: new project in Romania
- The Cinema City International N.V. group (“Cinema City”) has signed another lease for space in a new shopping mall in Iaşi, one of the largest cities in Romania. The opening of the 10-screen (2,000 seat) multiplex is planned for November 2008.
- This is Cinema City’s 9th project so far in Romania, and the 6th lease signed since the beginning of this year. The Company’s first two multiplexes in the country will open by the end of 2007.
The long-term lease agreement (10 years with an option to renew for three additional 5-year terms) was signed by a Romanian subsidiary of Cinema City and S.C. Ermes Holding SRL. The Company’s multiplex will be located in a new shopping mall, ERA Shopping Park, in the city of Iaşi, Romania (one of the country’s largest cities, with a population of about 320,000). Cinema City will have two multiplexes in Iaşi. The Company previously signed a similar agreement with the firm Iulius Mall, the largest developer on the local shopping mall market.
“Our interest in investing in Romania is based on the very strong prospects for the cinema market there,” said Moshe J. Greidinger, CEO of Cinema City, the largest multiplex cinema operator in Central & Eastern Europe and in Israel.
“When we open the multiplexes for which we have already signed leases in specific shopping malls, we will be the clear leader on this market.”
The great potential of this market is demonstrated by the fact that 0.13 cinema tickets per capita were sold in Romania in 2006. By comparison, the figure in Poland was about 0.84 tickets, while the European Union average is about 2.5.
Cinema City’s multiplexes in Romania will be located in all the largest cities: Bucharest, Craiova, Bacău, Iaşi, Timişoara and Cluj.