Cinema City signs lease contracts for 3 multiplex cinemas in Romania
Scheduled for opening already in 2007
A Romanian fully owned subsidiary of Cinema City International ("Cinema City"), has signed long-term lease contracts for 3 locations in Romania with IULIUS MALL, the largest developer of shopping malls in Romania. Multiplex cinemas are expected to open already this year. Cinema City intends to run 6 multiplex cinemas in Romania by the end of 2008 which shows an advancement on its investment plans.
"Romania is a large market with a very high growth potential and still low competitive edge of the cinema industry. In line with our initial investment scheme, we planned to open 4 multiplex cinemas in Romania by the end of 2008, and we had signed lease agreements for three locations in Bucharest shopping malls last year. Thanks to the recently signed agreements, we will be able to advance our entry to the Romanian market already this year. By the end of 2008, we should be clear market leader with a total of 6 multiplex cinemas in Romania's 4 major cities," says Moshe J. Greidinger, CEO of Cinema City, the largest operator of multiplex cinemas in Central-Eastern Europe and Israel.
Under the lease agreements concluded with IULIUS MALL, Cinema City will operate theatres in 3 key cities with a population of more than 300 thousand habitants each: Iasi, Timisoara and Cluj. All contracts are for a period of 10 years with three options of extending the lease term, each time for another five years.
In Iasi (5 screens multiplex with 830 seats) and Timisoara (7 screens multiplex with 970 seats), multiplex cinemas are expected to open at 3Q 2007. The expected opening date of the largest project in Cluj (10 screens multiplex with 1750 seats) is 4Q 2007.
“The strategic partnership with Cinema City is both honouring and obliging for us and we are hoping to extend it to more than 3 malls in future. We would be very pleased as well if one day Cinema City would open in one of our malls Imax cinema (3D) for which it is an exclusive operator in Romania”, Iulian Dascalu, the President of Iulius Group stated.
Romania will be the sixth market where Cinema City will operate multiplex cinemas (the remaining five markets are: Poland, Hungary, Czech Republic, Bulgaria and Israel). The Romanian theatre market is still very poorly developed and as such it is perceived by the Company as a compelling investment opportunity. With a population of 22 million, Romania has very few multiplex cinemas. Due to the shortage of cinema infrastructure, ticket sales per capita in Romania are around 0.2 per year, compare to almost 1 in Poland, and over 2 in the EU as a whole.