Cinema City co-owner of real estate in Bulgaria
Shopping mall and multiplex planned
A Bulgarian company in which the Cinema City International N.V. group (“Cinema City”) controls 45% of the shares has signed an agreement to purchase land with an area of 60,000 sq m in the city of Russe, Bulgaria. The investment by Cinema City is EUR 11.25 mln. As with projects in Sofia and Plovdiv, a shopping mall will be built there with a modern multiplex cinema.
“Our activity on the shopping mall market, particularly in Bulgaria, is part of our growth strategy,” said Moshe J. Greidinger, CEO of Cinema City, the largest multiplex operator in Central & Eastern Europe and in Israel. “We participate in establishing shopping malls, while at the same time securing the right to operate a multiplex in space which we lease. This allows us to develop the Cinema City chain of multiplexes in attractive locations, and also gives us an opportunity to obtain additional benefits from operations on the real estate market.”
The land which has been purchased is located in the city of Russe (population about 200,000). A shopping mall with an area of 25,000 to 35,000 sq m will be built on a site of 60,000 sq m. Cinema City intends to operate the city’s first multiplex there.
Cinema City’s partner (as in the case of construction of shopping malls in Sofia and Plovdiv) is Ocif Ekstern Europe Ltd. (“Ocif”). Each holds 45% of the shares in the Bulgarian company which has purchased the land for EUR 22.5 mln (an investment covered half and half by Cinema City and Ocif). The other 10% of the shares in the Bulgarian company are controlled by the prior owner of the real estate.