Global City Holdings
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31

Jul

Entering into the share purchase agreement with Ocif Eastern Europe Ltd relating to the Bulgarian companies executing real estate projects in the cities of Plovdiv and Ruse in Bulgaria. (31 July 2008)

With reference to the current reports: no. 13/2006 dated December 22, 2006 , no. 24/2007 dated June 30, 2007 , no. 31/2007 dated August 29, 2007 as well as no. 26/2007 dated July 23, 2007 the Board of Managing Directors of Cinema City International N.V. with its corporate seat in Amsterdam, the Netherlands (the "Company") informs that on 30 July 2008 its Dutch wholly-owned subsidiaries - IT Sofia B.V. and IT Sofia 2007 BV- entered into the share purchase agreement pursuant to which it undertook to buy from its partner Ocif Eastern Europe Ltd:

1)      15% of interest held in the share capital of MO Plovdiv AD, a Bulgarian company developing a shopping center in the city of Plovdiv

2)      45% of interest held in the share capital of, Cinema City Malls AD, a Bulgarian company developing a shopping center in the city of Ruse

Purchase price paid for shares in both holdings was EUR 18 million.

The closing of this transaction, i.e., transfer of shares on one hand and payment of the share price on the other hand, is subject to standard conditions precedent typical for such types of share purchase agreements and is foreseen to take place within 30 to 90 days from the date of signing this agreement.

Before this transaction the Company, through IT Sofia B.V. and IT Sofia 2007 B.V., held 15% of the share capital in MO Plovdiv AD and 45% of the share capital in Cinema City Malls AD. Following the closing of this transaction, the Company through IT Sofia B.V. and IT Sofia 2007 B.V. will own:

1)      30% of the share capital of MO Plovdiv AD. The remaining 70% of share capital in MO Plovdiv AD is held by the original landowner (20%) and by GE and Quinlan real-estate funds ( 50%).
2)      90% of the share capital of Cinema City Malls AD. The remaining 10% of share capital of this company is held by the original landowner.
 
        The Plovdiv mall is in an advanced phase of construction. It will comprise 25,000
square meters of leasable space, including an 8-screen multiplex. The opening
of the mall is planned for the spring of 2009. In August 2007, Cinema City sold
15% of its holding in the Plovdiv mall. As part of the August 2007 sale, the parties agreed that Cinema City’s remaining holding in the mall would be sold to the
same funds based on an agreed formula

Construction of the center in Ruse recently commenced, with close to 40% of
the mall already pre-leased. The shopping center will be comprised of 35,000
square meters of leasable area and will include a multiplex.

 Press release with the CEO comments

Project of the mall in Plovdiv       Project of the mall in Ruse

 

Pictures from the Mall of Plovdiv construction (July 2008)