Shopping center Afimall expels Formula Kino

The contract with the cinema chain was terminated shortly after it filed a lawsuit against Afimall, demanding to reduce rents.
Shopping center "Afimall" on Wednesday, December 7, unilaterally terminated the contract prematurely with a network of cinemas "Formula Kino" and demanded to vacate the premises within five days, the representative of the network of cinemas. This happened shortly after the network filed a lawsuit, demanding to revise the terms of the lease in the shopping center. The representative of "Afimall" explains that the contract with the "Formula Kino" was canceled due to accumulated debt to pay rent, "The notice we have designated a comfortable period of five days to vacate. At the same time we are ready to listen to offers theater, but so far none of them did not apply to us. " General Director of "Formula Kino" Beau calls Nikita shopping center demand illegal: "We are waiting for the results of the lawsuit will continue to work in" Afimall "and look forward to the signing of a new contract. To leave here, we are not going to. "

Interviewees "Vedomosti" consultants working in the real estate market, say it is the first known case of them when a landlord evicts ostentatiously large network of cinemas and all the anchor tenant. Typically, in a peaceful situation, a major tenant receives about half a year to release space, they added. Dandy also claims he did not know of other situations demanding theater out of a large shopping center.

But if the tenant for a long time, for example about half a year, delaying payments, the contract usually provides the opportunity to evict him in a very short period of time, said director of the department consulting and analytics Knight Frank Olga Yassin.

The claim to "Afimall" cinema network filed in mid-November. Then Beau explained, "Vedomosti" that the tenancy agreement was concluded in 2008, the rate has been fixed in the currency (theater itself opened in 2011). Before the company could negotiate with the trade center on acceptable terms of the contract due to additional agreements. This summer, another agreement of this kind has expired, he said. "Afimall" I have decided to substantially increase the payment - it now exceeds the cinema revenues. "We are making changes in the conditions of the contract in court in connection with the substantial change of circumstances", - says Dandy.

Crecedents little

While in Russia there were only a few cases where the tenants sought through the court change the terms of the lease. The most famous - the claim of "VimpelCom" to the business center Hermitage Plaza. In May 2015 the operator through the court demanded to recalculate the rent fixed in dollars, citing the substantial change of circumstances for the company, especially the devaluation of the ruble. The Court of First Instance an action of cellular operator partially upheld, the appellate court reversed. As a result, the parties came to an amicable agreement.

"Afimall" has long been open to talks with the cinema chains, but the "Formula Kino" not only expressed the desire to repay the debt, but it has taken a tough stance and has filed lawsuits, not complying with the terms of the agreement, explained the representative of the termination of the contract the shopping center. The amount of debt not disclosed.

If theater does not vacate the premises, "Afimall" ready to dismantle and store abandoned property for its subsequent transfer to the lessee, said the representative of the shopping center. He said that until now the tenants are always traveled in time.

Rents - a painful question for cinema, especially for large networks. Since most of their rooms are not located in their own separate rooms, and in shopping centers. At the end of 2014 Russia's largest cinema chains even published an open letter to the owners of the shopping center with an appeal to fundamentally reconsider the leases and tie bets instead of the dollar against the ruble.

"Formula Kino" - the second largest cinema chain in Russia after the "Cinema Park". According to "Research, Nevafilm", at the beginning of November at the "Cinema Park" was 37 cinemas with 334 rooms, the "Formula Kino" - 35 cinemas with 266 rooms. This is 6.4% of all modern screens in the country. About 75% of shares of "Formula Kino" belongs to the A1, the investment unit "Alfa", the rest - at one of the network founders, Vladimir Zakharov. The network did not disclose financial figures. First sources of "Vedomosti" familiar with its financial performance, said that EBITDA of "Formula Kino" in 2015 amounted to about 1 billion rubles.

"Afimall City" - a large shopping center in the "Moscow City", with an area - 282 100 sq. m. It is one of the two largest AFI Development assets. The entire portfolio of the company, which is the main owner - Israeli businessman Lev Leviev, is estimated at $ 1.2 billion in March of this year, AFI Development announced that it has received from the lender, VTB Bank, warning: may require the early execution of loan commitments in connection with the deterioration of the financial. the borrower. But in September, the parties agreed to restructure the loan by $ 600 million.