Global City Holdings
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23

Apr

Current report No. 18/2008 of 23 April 2008: A new Cinema City multiplex to be run in Arad, Romania – execution of the lease agreement

 

The Board of Managing Directors of Cinema City International N.V. (the "Company") informs that Cinema City Romania SRL, a wholly-owned subsidiary of the Company incorporated and existing under the laws of Romania, executed the lease agreement with the company S.C. Arad Atrium Center SRL , a company incorporated and existing under the laws of Romania.
In accordance with the above-mentioned lease agreement Cinema City Romania SRL will lease area in the “Atrium” shopping center in Arad, Romania constructed by S.C. Arad Atrium Center SRL. The area will be used by the Company to operate the multiplex cinema as specified below:
 
 

No.
City
Leased area
(ca. in sqm)
Number of screens
Number of seats
Expected opening date
1.
Arad
2 700
10
approx 1,600
4th quarter 2009

 
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.
 
The multiplex in the “Atrium” shopping center in Arad will be the 25th Cinema City multiplex in Romania and the second Company’s multiplex in this city.
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