Vintage Real Estate Signs Cinemark for All-Digital Movie Theatre at SouthBay Pavilion

Fred Sands, chairman of Vintage Real Estate, today announced the company has signed a lease with Cinemark Holdings, Inc. (NYSE:CNK) to bring a 14-screen, all-digital Cinemark Theatre to SouthBay Pavilion. As the entertainment anchor for the enclosed mall, the multiplex will be constructed in the center of the space allowing for guests to use the ample parking available around the mall’s four entrances and have easy access to the theatre. Construction of the approximately 57,000-square-foot multiplex will begin this summer with the opening anticipated for December 2014.

“Cinemark is a premier operator and its theatre at SouthBay Pavilion will be a tremendous addition to this underserved market. Currently the closest theatres for people in this area are miles away in the cities of Torrance and Redondo Beach,” noted Sands. “Bringing the multiplex to the mall is a major milestone in our ongoing renovation and repositioning program. Featuring it as the centerpiece of the mall makes it easier for our guests to locate convenient parking and to access the theatre, and it enhances pedestrian flow.”

The theatre will feature Cinemark’s new Cinemark NextGen design concept which offers the latest technology, cutting edge amenities and customer-preferred options including:

• State-of-the-art viewing environment with wall-to-wall, ceiling-to-floor screens available in all auditoriums.
• 4K digital projection powered by Barco projectors: RealD 3D capability.
• Enhanced sound systems that will enable customers to hear the movie as the filmmakers intended.
• Cinemark’s innovative self-serve concession stand offering freshly-popped popcorn, Coca-Cola fountain beverages and favorite candy bars.
• Cinemark XD: Extreme Digital Cinema auditorium.

Cinemark will be bringing their exclusive large screen format, Cinemark XD Extreme Digital Cinema, auditorium to the market. Cinemark XD is a complete entertainment environment featuring a 72 foot, wall-to-wall and ceiling-to-floor screen, plush seating and a custom digital surround sound system featuring the latest in sound technology. The digital images will be delivered by a Doremi server and a Barco DLP digital projector, which offers the brightest light standards in the industry. The XD auditorium will exhibit the newest movies every week, including 2D and RealD 3D pictures.

“We are pleased to open a new Cinemark NextGen movie theatre featuring Cinemark XD for our guests in the Los Angeles area to enjoy,” states Tim Warner, Cinemark’s Chief Executive Officer. “With 12 Cinemark and Century branded theatres in and around the area, Cinemark has called Southern California home for many years. Our new high-tech theatre will be the perfect entertainment environment for enjoying the best that Hollywood has to offer.”

The 1.1 million-square-foot SouthBay Pavilion is set on 73 acres located off of the 405 Freeway at the Avalon Boulevard exit just south of the South Bay beach cities, a high-visibility location where more than 300,000 cars pass by daily on the 405 freeway. It is anchored by Ikea, Target, Sears, JC Penney, Old Navy and now Cinemark. SouthBay Pavilion draws from a population of 580,000 within a five-mile radius and 2.5 million within a 10-mile radius.

According to Roger Burghdorf, Executive Vice President of Leasing for Vintage Real Estate, since the company acquired SouthBay Pavilion in 2009 it has increased sales by 18 percent and the center’s occupancy by 22 percent. Further, according to national studies by the International Council of Shopping Centers the addition of a theatre should increase sales from 17 – 22 percent.

“Our management and leasing teams have worked diligently to upgrade the center by bringing highly-desirable new fashion retailers and restaurants to the property and by supporting the growth of the many great businesses already operating within the mall,” commented Burghdorf, adding that through the reconfiguration of the center and re-tenanting he is on track to bring more than 20 new shops and restaurants to the center by year-end 2014.

Recent additions to mall include the Olive Garden restaurant which has quickly become a top performer in the chain and a favorite for locals and workers at the many nearby business centers. The new Beauty Lounge & Spa offers full-service spa and salon services in a modern and luxurious setting, on a par with spas found in premier luxury hotels.

Among existing businesses that are now remodeling or expanding is Old Navy which is currently under construction on a new store which will be its latest design and will carry its newest clothing lines. New fashion retailers are slated to open soon along with several new restaurants and fast casual dining.

“We are in the process of finalizing some additional renovations to the mall that will bring more retailers and restaurants to this exceptional location. With the addition of Cinemark Theatres and the already double-digit sales growth that we have achieved, SouthBay Pavilion is even more appealing to national and local retailers and restaurants,” observed Ken Hocker, Executive Vice President, Development, for Vintage Real Estate.

ABOUT FRED SANDS AND VINTAGE REAL ESTATE

Sands formed Vintage Capital Group in 2001 to continue his private investment activities in commercial real estate and operating businesses of the past two decades. Sands previously owned Fred Sands Realtors, California’s largest independent real estate brokerage and financial services companies. Sands sold Fred Sands Realtors to Coldwell Banker in November 2000. Vintage Capital Group is headquartered in Los Angeles in the same Brentwood high-rise that Sands has owned and occupied for decades. While Sands was highly visible in the residential real estate arena, he also invested in commercial real estate including retail centers. Today Vintage Real Estate, a wholly-owned division of Vintage Capital, owns and manages a variety of retail centers, including regional malls, across the country. The company’s focus is on acquiring underperforming properties where its experienced retail team can apply its proven approach to repositioning and improving troubled centers. Sands also founded Vintage Fund Management, a private equity fund focused on investing in established middle market businesses that seek a long term capital solution and partner to provide financial and operational assistance to grow and expand. Additional information can be found at www.vintagecapitalgroup.com, www.vintage-vre.com and www.vintage-vfm.com.

ABOUT CINEMARK HOLDINGS, INC.

Cinemark is a leading domestic and international motion picture exhibitor, operating 467 theatres with 5,259 screens in 39 U.S. states, Brazil, Mexico, Argentina and 10 other Latin American countries as of March 31, 2013. For more information go to investors.cinemark.com.