Arco Vara sold its 50% holding in AVEC Asset Management AS. After the
transaction East Capital Holding AB is the sole owner of AVEC Asset Management
AS and continues to manage two property funds- AVEC Baltic Property Fund and
Arco Baltic Real Estate Portfolio.
The final value of the transaction depends on the present value of different
cash flows, that according to current evaluation are equal to 36.5 mln kroons
(2.3 mln euros). 15.6 mln kroons (1.0 mln euros) is received right now and the
rest after the liquidation of AVEC Baltic Property Fund, at earliest on year
2012. The value of the last proceeds to Arco Vara depends on the success fees
paid by the fund to AVEC Asset Management AS.
“It has been partnership where both parties have gained. East capital has
better understanding on property market and Arco has gained necessary
intelligence on fund management operations and therefore added value to all the
businesses in the group. The challenge to Group's different divisions has been
great. We thank East Capital in establishing a great fund management
operations”, says Arco's CEO Mr. Aare Tammemäe.
“Starting a joint venture in 2005 was a good decision for East Capital as
well as Arco Vara. Our cooperation with the leading Baltic real estate company
has been mutually beneficial especially in terms of gaining new knowledge,”
said Gert Tiivas, head of East Capital's Baltic office and the Chairman of the
Board of AVEC Asset Management. “Now, having 100% ownership, we can take full
control and responsibility over the development of business. This is especially
important for East Capital as a long-term investor.”
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 employs
over 640 people. 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
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