Cinema City: Mall of Plovdiv in Bulgaria opened; completion of sale of Cinema City’s remaining interest . (23 March 2009)
Cinema City International, N.V. (“Company”) opened last Friday its second shopping center in Bulgaria in the city of Plovdiv, which includes an 11 screen multiplex theatre. Pursuant to a 2007 agreement among the Company, the original Plovdiv landowner, GE Real Estate and Quinlan Private (Ireland), in conjunction with the opening, the Company sold its remaining 30% interest and the landowners sold its remaining 20% interest in the shopping center to GE Real Estate and Quinlan Private. 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.
“We are excited about today’s opening. The successful consummation of our pre-existing agreement with GE Real Estate and Quinlan Private confirms that our real estate development strategy continues to generate positive results for the Company and for our shareholders,” said Moshe J. Greidinger, CEO of Cinema City, the largest multiplex cinema operator in Central & Eastern Europe and in Israel. “In the Mall of Plovdiv we will operate our second Bulgarian multiplex. I am convinced that, similar to our experience with the cinema in the Mall of Sofia, this new multiplex will also enjoy high popularity, bringing the best cinema going experience for the people of Plovdiv,” added Mr. Greidinger.
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.
Cinema City International is the largest multiplex cinema operator in Central & Eastern Europe and in Israel. The Company operates 64 multiplexes with 592 screens, in 6 countries (Poland, the Czech Republic, Hungary, Romania, Bulgaria and Israel). There are 45 more multiplexes under development, which will offer additional 476 screens. In addition, Cinema City is actively involved in cinema related advertising and film distribution.
The Cinema City group employs over 3,000 people in 6 countries.
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