Garkalne County approved the zoning for residential district project called
“MB-3” near Riga next to Baltezers lake. The land belongs to the municipality
of Riga but Arco Development SIA, Arco's 80% subsidiary, has leasehold right
until the year 2034.
The size of the land plot is 86 ha. 60 ha can be used for construction with the
intensity of 30%. Maximum construction right is 181 392 m2 of gross space. The
book value of the project is 0.6 mln kroons (0.04 mln euros) and it's recorded
in inventory. The project has never been appraised for IPO or accounting
“The size of MB-3 project is comparable to Veskimöldre project in Talllinn, so
it's a considerable project for Arco in Latvia. The project has all ingredients
for success- great location near Riga, good connection to the city, good
infrastructure and low acquisition cost. 4 year long successful zoning process
gives to the management comfort of executing “hidden values” in our land bank
further”, says Arco's Mr. CEO Aare Tammemäe.
Arco Vara is a leading real estate developer in the Baltic's, undergoing a SEE
expansion with presence established already in Ukraine, Bulgaria and Romania.
The operations involve real estate development, brokerage, construction and
investment management arm. The company has offices in 29 cities and has in
total 640 employees. According to 2007 audited consolidated results net sales
was 727 mln kroons (46 mln euros), net profit before minorities 235 mln kroons
(15 mln euros) and assets 3 564 mln kroons (228 mln euros). Arco Vara is listed
on Tallinn Stock Exchange.
1 EUR=15,6466 EEK
+372 6144 654