A new Cinema City multiplex to be run in Sibiu, Romania – execution of the lease agreement (26 September 2008)
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 SC Festival Doi 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 shopping center in Sibiu, Romania constructed by SC Festival SRL. Sibiu is a city of 155 000 inhabitants and for the year 2007 it was designated European Capital of Culture. The area will be used by the Company to operate the multiplex cinema as specified below:
Leased area 2 400
(ca. in sqm)
Number of screens 8
Number of seats 1,400
Expected opening date 4 Q 2010
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 shopping center in Sibiu will be the 30th Cinema City multiplex in Romania.