A new Cinema City multiplex to be run in Gdansk - the memorandum of understanding with respect to lease agreement
The Board of Managing Directors of Cinema City International N.V. (the "Company") informs that on 15 May 2007 Cinema City Poland Sp. z o.o., a wholly-owned subsidiary of the Company, executed the binding memorandum of understanding providing general and most crucial terms and conditions for lease (the "Agreement") with Euro Mall Polska XVI sp. z o.o.
In accordance with the Agreement Cinema City Poland sp. z o.o. will be leasing areas in a shopping centre in a new central district of Gdansk - Gdansk Young City to operate a multiplex cinema together with IMAX as specified below:
|No.||City||Leased area (ca. in sqm)||Number of screens||Number of seats||Expected opening date|
|1.||Gdańsk||6,000||19 plus IMAX screen||4||end 2009|
The detailed terms and conditions of the lease will be determined in the lease agreement to be concluded in the foreseeable future and in accordance with all terms and conditions of the Agreement.
The Agreement provides that the lease agreement will contain standard provisions, typical for agreements of such kind and will give the Company the right to lease the cinema space for 25 years (the lease agreement will be concluded for ten years with three options of extending a term of lease term, each for another five years). The Company will be required to pay a monthly rent on a market standards consisting of a fixed rent calculated on the basis of the leased area and the management fee for the benefit of the management company of the shopping mall.
This new investment in Gdansk is scheduled to be open at the same year as the Company's new and similar in terms of screens and leased area multiplex cinema to be located in Cracov in the Bonarka City Center shopping mall which is targeted to be open in the 1st quarter of 2009.
Legal grounds: Art. 56.1.1 of the Act of 29 July 2005 on the public offering, conditions governing the introduction of financial instruments to organised trading system and on public companies.
A signature of persons authorised to represent the Company: Mr. Israel Greidinger-a Managing Director, proxy