1 April 2025
Worsley Investors Limited
(the "Company" or together with its subsidiaries the "Group")
Curno Lease Update
Background
The Group's Italian multiplex cinema complex, located in Curno, near Bergamo, was hitherto let in its entirety to UCI Italia S.p.A. ('UCI').
On 17 January, the Company announced that UCI had informed the Group that it would vacate the property on 30 January, which it did.
After UCI did not pay any rental for the period subsequent to 10 January, as of the close of business on 25 February, pursuant to Italian law, the lease agreement automatically terminated for default.
Curno Cinema lease
The Company is pleased to announce that its wholly owned Italian subsidiary, Multiplex 1 S.a.r.l. ('Multiplex'), has entered into a new lease agreement with Notorious Cinema S.r.l. ('Notorious'), an Italian company, for it to operate the cinema complex. Notorious is a wholly owned subsidiary of Notorious Pictures S.p.A., an Italian company, whose shares are listed on the Euronext Growth Milan market, and which through its group of companies is an international movie producer and distributor and one of Italy's leading cinema operators.
Refurbishment
Notorious has contracted to undertake a transformation of all the multiplex's viewing halls, with the installation of latest generation reclining armchairs in eco-leather, and the renovation of the foyer, furnishings and lavatories, with all works to be completed by 31 August 2025.
Brief details of the lease are set out below.
Rental
From the outset Notorious will pay Multiplex turnover rent, subject to the following minima:
From 1 September 2025 until 31 August 2026 -- €500,000
From 1 September 2026 until 31 August 2027 -- €525,000
From 1 September 2027 until 31 August 2028 -- €550,000
On 1 September 2028 and annually thereafter the minimum rental will increase by 75% of the variation over the previous twelve months in the Italian ISTAT consumer price index.
In recognition of Notorious's expenditure on the refurbishment of the cinema, from 1 September 2025 until 31 August 2030, the annual rental payable will be reduced each year by €108,000.
Duration
The Lease will have an initial termination date of 31 August 2035. Notorious has a unilateral right to renew the Lease for a further eight years under the same terms and conditions.
Way Forward
The execution of the Notorious lease does not prejudice the legal remedies which the Group intends to pursue against UCI for compensation in respect of the damages suffered as a result of their unlawful conduct.
In the meantime, the Group's portfolio continues to perform well, it does not carry any debt, and it retains strong liquidity, which is well in excess of its working capital requirements.
END
For further information, please contact:
Worsley Associates LLP (Investment Advisor)
Blake Nixon
Tel: +44 (0) 203 873 2288
Shore Capital (Financial Adviser and Broker)
Anita Ghanekar / Harry Davies-Bell
Tel: +44 (0) 20 74080 4090
Apex Fund and Corporate Services (Guernsey) Limited (Administrator and Secretary)
Nikita Pingale / Aoife Bennett
Tel: +44 (0) 20 3530 3696
LEI: 213800AF85VEZMDMF931
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