Current report No. 08/2011 of 11 May 2011: A new Cinema City multiplex to be run in Lublin, Poland – execution of the lease terms
The Board of Managing Directors of Cinema City International N.V. (the "Company") informs that 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 terms with the company Gala S.A., a company incorporated and existing under the laws of Poland.
In accordance with the above-mentioned lease terms Cinema City Poland Sp z o.o. will lease area in the shopping center Gala (working name) in Lublin, Poland constructed by Gala S.A. Lublin is a city of 350 000 inhabitants (450 000 inhabitants during academic year). The area will be used by the Company to operate the multiplex cinema as specified below:
Number of screens 10
Leased area 4 500-5 000 sq m
Expected opening 4th quarter 2015
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 Gala shopping center in Lublin will be the 2nd Cinema City in Lublin and the 35th Cinema City multiplex in Poland.
Legal grounds: Article 5:53 and subsequent of the Dutch Act of 28 September 2006 on rules regarding the financial markets and their supervision (Act on Financial Supervision – Wft.) in conjunction with Article 56.1.1 and article 56.6 of the Polish Act on Public Offerings, Conditions governing the Introduction of Financial Instruments to Organized Trading and on Public Companies of 29 July 2005.