Spain's Filmanova and Denmark's Zentropa Productions havesigned a two-picture co-production agreement starting with Filmanova co-founderAnton Reixa's Tivoli Hotel.

The second film of the accord has not yet been agreed.The deal marks Zentropa's first such move with a Spanish company. It brings 10% of the film's estimated Euros 2.6m budget.

A romantic comedy with no less than eleven love storiesrevolving around a cigarette lighter as it changes hands, Tivoli is expected toshoot in Spain, Portugal and Argentina beginning next April.

As a result of the new accord it may also shoot scenes inCopenhagen and Nuuk (Greenland) with Danish actors. Trust Film Sales willhandle international sales and post-production will take place at leastpartially in Zentropa's Copenhagen studios.

Portugal's Animatografo and Argentina's Aquafilms arealso co-producing.

Filmanova is an up-and-coming player based out of thenorthwestern Galicia region of Spain. Earlier this year, Filmanova launchedprivate investment fund Filmanova Invest to take participations inco-productions. The company also signed a multi-picture co-production deal lastyear with the Almodovar brothers' El Deseo, encompassing an associate producercredit on Bad Education (La Mala Educacion).

"We are very happy with the Zentropa agreement," said Reixa by phone from Argentina, where he is promoting the release of his last film, The Carpenter's Pencil. "We've been passing versions of the script back and forth for a year and a half, discussing contents. Usually producers talk about money first but we were talking about stories."