Seoul, South Korea, October 23, 2017 ‒ The world’s fifth largest multiplex theater chain CJ CGV and a pioneering Russian urban developer ADG group have announced the creation of a new joint venture company that will develop a new cinema concept in Russia. The new company will become an anchor tenant in ADG group’s Neighbourhood Centres project and will operate 160 screens and 33 cinemas across Moscow. This initial commitment will form the basis for CGV’s planned expansion into the Russian cinema market.
On October 23, CGV and ADG group have announced the establishment of a new joint venture company. The new company will become an anchor tenant in ADG group’s Neighbourhood Centres project: The 33 cinemas will offer a choice of Russian and International movies in 160 screens.
In 2014, ADG group acquired 39 outdated cinemas located in Moscow’s densely populated urban areas in order to redevelop them into Neighbourhood Centres - a new commercial real estate asset class. Award-wining architect, Amanda Levete became an author of architectural concept. The project’s mission is to revitalize the historical centres of gravity of these locations and to bring new quality of urban life and retail convenience to over 2,5 million Muscovites living in 15-minutes walking distance from these sites. Neighbourhood centres offer their visitors everything for a quality time spending and proximity shopping, providing all the essentials in convenient and comfortable environment with a superior customer experience and respect to the interests of local communities. The potential of these physical locations is enlarged by the project’s online infrastructure in order to deliver both omnichannel sales and communications.
The new cinema operator will become the only international player in the Russian market delivering state-of-art cinema ambiance as well as the high quality service and new movie screening technologies to Muscovites. The new company plans to operate 33 cinemas and 160 screens in the ADG group’s Network of Neighbourhood Centres after complete commissioning. If other players remain the current status, that means becoming Moscow’s number one in terms of cinemas and number two in terms of screens.
CJ CGV is the 5th in the world and the largest multiplex cinema chain in South Korea. The company has operated in China, Indonesia, Myanmar, Turkey, Vietnam, and the United States with more than 400 sites and 3,000 screens. Russia has become the 7th country to which CJ CGV has entered.
Seo Jung, CEO of CJ CGV, said that “In ADG group we have found a reliable partner with strong local expertise. The scale and the concept of their project meet our expectations of entering new markets. With ADG group, CJ CGV would like to deliver state-of-art cinema ambiance as well as the high quality service to Muscovites.” Mr. Seo emphasized that Russia is a strategically important country for CJ CGV to expand its global presence to European market and that he would like to utilize this opportunity as a way to open a cinema Silk Road in the nearest future.
Grigory Pechersky, Managing Partner at ADG group: "We expect that our partnership will be successful and mutually beneficial. The large-scale deal with this important international player is yet more proof that the Neighbourhood Centres’ concept is both relevant and realistic in it’s ambition to change the life of 2.5 million Muscovites. We are extremely proud to have attracted CGV to our project”
The group of specialists from CJ CGV and ADG group have responsibility for developing the concept of these future looking cinemas delivering a unique leisure offering along with neighborhood convenience, providing their visitors a premium experience at economy prices. The entire space of the cinema-floor will be designed to align and integrate with the entertainment floor’s edutainment, kids zone, restaurants and food & beverage offerings.