Korean cinema chain CJ CGV enters the Russian market: the company will open cinemas in Moscow on the basis of the regional centers that the developer ADG group to build on the old cinema. The company agreed to establish a joint venture, which will be the anchor tenant of the network of regional centers. 33 objects will open 160 of the cinemas, said the ADG group.
If the current indicators of other players in the market, after the launch of all new locations the chain will be the first in the number of theaters and the second largest number of screens in Moscow. In a joint venture 70% will belong to CJ CGV, a 30% ADG group.
CJ CGV – the fifth in the world and is South Korea’s largest cinema chain (more than 400 cinema and 3 thousand screens). The company also operates in China, Indonesia, Myanmar, Turkey, Vietnam and the United States. Seventh foreign market for the CJ CGV will be Russia, where other international chains are not represented.
At the end of the summer, “Kommersant” with reference to sources reported that CJ CGV is interested in buying Russian cinema chains Karo. Regional centers will be a platform for further expansion of the CJ CGV to the Russian market, the report says ADG.
ADG Group implements a project on creation of network of regional centers on the site of old cinemas. In December 2014, the company acquired from the Moscow government’s 39 theaters in residential areas of the city. The regional centers will house cinemas, shops and restaurants, be entertaining, educational events, master classes. “The goal of the project is to recreate historical function of the attraction points of the district activity and to improve the quality of life of 2.5 million Muscovites living in walking distance of objects”, – said the ADG.
In the beginning of the year the ADG group has announced the signing of the lease agreement with the retailer “Lenta”. It is assumed that the “Ribbon” will open supermarkets in 36 regional centers.