The company, headed by Chaim Katzman, will invest NIS 200 million ($49 million) in the project, along with New Lineo Cinemas (NLC), a Portuguese company that initiated the first Cinema City complex in Portugal.
The project will cost the two companies NIS 50 million ($12 million) more than initial estimates suggested.
The complex is expected to open in the second half of 2008, and will be located on a 4-acre plot in west Rishon Lezion. The 65,616 square foot building will include 21 movie theatres, conference halls, and commercial areas. The complex is expected to yield annual revenues of NIS 18-20 million ($4.4-4.9 million).
According to the company’s CEO, Ronen Ashkenazi, the complex was expected to attract many visitors due to its “strategic and easily accessible location”.
“The accumulated knowledge of Cinema City’s management, along with our experience in commerce and entertainment complexes, is sure to set a new standard of leisure, culture, and entertainment in Israel,” Ashkenazi said.
Gazit Globe is an Israeli subsidiary of the Gazit Globe Ltd. real estate company, and is behind the construction of 25 properties in Israel and Bulgaria.