Final settlement of agreement between Cinema City International and GE Real Estate and Quinlan Private (Ireland) concerning sale of 30% interest in Rilon Bulgaria Jsc, a developer company of the Mall of Plovdiv shopping center in Bulgaria. (22 March 2009)
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, no. 41/2008 dated July 31, 2008 as well as no. 51/2008 dated September 23, 2008 the Board of Managing Directors of Cinema City International N.V. with its corporate seat in Amsterdam, the Netherlands (the "Company") informs that on 20 March 2009 its Dutch wholly-owned subsidiary - IT Sofia B.V. – executed a final settlement of the agreement dated 29 June 2007 (the “Agreement”) with GE Real Estate and Quinlan Private (Ireland) (the “Funds”).
Pursuant to the Agreement among the Company, the original Plovdiv landowner and the Funds, in conjunction with the opening of the Mall of Plovdiv shopping centre, the Company sold its remaining 30% interest in Rilon Bulgaria Jsc and the landowners sold to the Funds its remaining 20% interest. Rilon Bulgaria Jsc is a developer company of the Mall of Plovdiv shopping center in the city of Plovdiv, Bulgaria.
The Company expects to recognize €23 million revenue from the sale. In connection with selling its interest, the Company provided €5.2 million in financing to one of the buyers, which buyer has committed to repay the credit, together with interest thereon, within 45 days of the closing. All other payments due from the buyers at the closing were paid in full.
Under the sales agreement, the Company will remain responsible for the final completion of the mall, including supervising the general contractor and has provided a €1.8 million guarantee in relation to this obligation. The Company has retained its long-term lease for the multiplex in the mall.
The Mall of Plovdiv is the first large and modern shopping mall in the city of Plovdiv with 25,000 sq m leasable area, approximately 110 shops and outlets, including the premiere anchor tenants: Piccadilly, Technomarket, New Yorker, Mothercare, Beauty Zone, Benetton, McDonalds, KFC, and the Cinema City multiplex, with 11 screens including one digital screen.