Execution of the lease agreement for Cinema City megaplex in Gdansk, Poland – actualization of the current report no 15/2007 dated 23 May 2007 (28 January 2009)
In reference to the current report no 15/2007 dated 23 May 2009 the Board of Managing Directors of Cinema City International N.V. (the "Company") informs that, in execution of the binding memorandum of understanding providing general and most crucial terms and conditions for lease (“Agreement”), Cinema City Poland Sp z o.o., a wholly-owned subsidiary of the Company incorporated and existing under the laws of Poland, executed the lease agreement with the company Euro Mall Polska, a company incorporated and existing under the laws of Poland.
The above-mentioned lease agreement was concluded on the terms defined in the Agreement except for the surface of the cinema which will be 7 300 sqm.
According to the above-mentioned lease agreement Cinema City Poland will lease area in the shopping center Gdańsk Young City in Gdańsk constructed by Euro Mall Polska to operate the megaplex cinema as specified below:
Leased area (ca. in sqm): 7 300
Number of screens: 20 (19 regular screens plus IMAX screen)
Number of seats: approx 4 000
At the same time the Company is informing that according to the above-mentioned lease agreement the megaplex should be delivered by Euro Mall Polska before 1 quarter 2012.
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 megaplex in Gdansk Young City shopping center will be the biggest cinema of the Company on the Polish market.