Cinema City To Build Shopping Centre In Bulgaria
The subsidiary of Cinema City International N.V. (Cinema City) completed the acquisition of a 30% stake in Rilon Bulgaria which will build a modern shopping centre in Plovdiv, Bulgaria. This EUR 40 million project is scheduled for completion by the end of 2008. Cinema City will launch a multiplex cinema with 10 screens in the shopping centre.
"Part of our business strategy includes development of shopping malls which includes multiplex cinemas. The project in Plovdiv is a good example of that strategy. We have acquired all the planning permissions required to build the shopping centre. The corner stone ceremony was held this week in the present of Bulgaria’s interior minister, and construction works are under way. The project will comprise a very modern shopping centre with the first multiplex cinema in the city (correct). It should be noted that Bulgaria's cinema market shows a vast growth potential, and Plovdiv is the one of the biggest secondary cities in the country with 400 thousands of inhabitants" says Moshe J. Greidinger, CEO of Cinema City.
"More importantly, Cinema City will adopt the same operating model which was efficiently deployed in our first investment project in Bulgaria's capital city of Sofia (the centre opened in mid 2006). Similarly to the previous project, the centre in Plovdiv will be developed in partnership with the Aviv Group which has extensive experience on the real property market. As it was the case in Sofia, our plan is to sell our shareholding in the shopping mall before it opens, while continue to hold the lease to operate the multiplex cinema in the centre," adds Moshe J. Greidinger.
Rilon Bulgaria (30% of stakes belongs to CCI, 30% to Avive Group and 40% to Rilon Group and others) owns the land where the shopping centre is planned for construction. The site will open to the public by the end of 2008. The project will be developed at the total cost of around EUR 40 million. The shopping centre will have the area of approximately 24000 sq. m. and will comprise more than 100 retail shops on two levels and a car park for more than 600 cars. Around 40% of the centre's retail area has already been preliminary booked. Cinema City has already signed an agreement to lease a part of the site where it will operate a multiplex cinema with 10 screens.