Lease agreement for 7 Cinema City multiplexes
The Board of Managing Directors of Cinema City International N.V. (the "Company") informs that on 2 October 2007 the Company signed the lease agreement with the company Globe Trade Center (“GTC”) to open multiplexes in each of GTC’s seven shopping malls to be developed across three countries.
Under the agreement, Cinema City will lease space from GTC to operate one multiplex in Częstochowa, Poland 3 multiplexes in Bulgaria (in Varna, Borgas and Stara Zagora) and 3 multiplexes in Romania (in Arad, Bistritza and Galati). In total, under its agreement with GTC, Cinema City plans to build approximately 65 new screens in three countries.
|No.||City||Leased area (ca. in sqm)||Number of screens|
All 7 new projects are planned to be opened within the next 18 to 36 months.
The lease agreement has been concluded for ten years with three options of extending a lease term, each time for another five years, and contains standard provisions, typical for agreements of such kind. 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 each shopping mall.
Cinema City has already partnered with GTC, having opened 2 multiplexes in GTC sites in Poland, one at Galeria Mokotów in Warsaw and one at the Kazimierz Mall in Krakow. In addition, the Company has already signed an agreement to develop another multiplex in Bucharest Romania.
Legal grounds: Art. 56.1.1 of the Act of 29 July 2005 on public offering and conditions governing the introduction of financial instruments to trading in the organized trading system and on public companies.
Signatures of persons authorised to represent the Company Mr. Israel Greidinger - proxy