Execution of lease agreement for Cinema City multiplex in Buzau, Romania (12 August 2009)
The Board of Managing Directors of Cinema City International N.V. with its corporate seat in Amsterdam, The Netherlands (the “Company”) announces that the company Cinema City Romania SRL, a wholly-owned subsidiary of the Company incorporated and existing under the laws of Romania, executed a lease agreement (“Agreement”) with the company Beaufort Invest SRL, incorporated and existing under the laws of Romania. The Agreement has been concluded in order to operate a cinema multiplex in the shopping center Galleria Buzau developed by Beaufort Invest SRL. Major parameters of the Agreement are as follows:
Name of the shopping mall: Galleria Buzau
Number of screens: 6
Estimated number of seats: 1 200
Estimated leased area: 1 700 sqm
Estimated opening date: 2nd quarter 2010
The 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.
Following the signature of the Agreements Cinema City will operate 35 multiplexes in Romania. The cinema in Galleria Buzau in Buzau will be the first multiplex of the Company in this city.