This website uses cookies. By continuing to use the website, you agree to the use of cookies.

Privacy policy

Creating homes in a
smart way

...directly tapping the market’s pulse

2011


19.09.2011: Report on special procedures in relation to Arco Vara AS in the English language
Management board of Arco Vara AS hereby discloses unofficial translation into English of the report on special procedures prepared by AS Deloitte Audit Eesti.
 
Lembit Tampere
CEO
Arco Vara AS
phone: +372 614 4630
This email address is being protected from spambots. You need JavaScript enabled to view it.
www.arcorealestate.com


Annex: Report on special procedures in the English language


Arco Investeeringute AS, a 100% subsidiary of Arco Vara AS, sold its 100% shareholding in Lilletee LA OÜ. Lilletee LA OÜ owns a nursery school in Haabneeme, Viimsi parish, that the local government will lease for the next eight years.

The 100% shareholding of Lilletee LA OÜ was obtained by VM Investments OÜ specialising in investment property.

Developing commercial property and realizing it through the disposal of shares in project companies is part of Arco Vara Group's principal activities, the transaction does not have any substantial influence to the operations of the issuer.

The transaction cannot be considered as a transaction with related persons, neither do the members of Supervisory or Management Board have any personal interest in the transaction.

The 1535 m2 nursery school building for 144 children and 6 classes was designed and built by YIT Ehitus, the architect of the building is Veiko Tein from Arhitektuurinurk OÜ. The completed building will be handed over for use to the Viimsi local government in March 2012.

Arco Vara is a leading property development company in the Baltic areas, established in 1992.  Main activity of the company is real estate development, supported by brokerage, valuation construction and facility management.
Company is represented in 17 cities in Estonia, Latvia, Ukraine and Bulgaria.

Lembit Tampere
CEO
Arco Vara AS
phone: +372 614 4630
This email address is being protected from spambots. You need JavaScript enabled to view it.
http://www.arcorealestate.com


Due to procurator Mr. Rainer Osanik leaving Arco Vara Group, the Supervisory Board of Arco Vara AS decided to terminate the proxy.  Respective entry became valid on 28th of September 2011 in the Commercial Registry.

Arco Vara is a leading property development company in the Baltic areas, established in 1992.  Main activity of the company is real estate development, supported by brokerage, valuation, construction and facility management.
Company is represented in 17 cities in Estonia, Latvia, Ukraine and Bulgaria.

Lembit Tampere
CEO
Arco Vara AS
phone: +372 614 4630
This email address is being protected from spambots. You need JavaScript enabled to view it.
http://www.arcorealestate.com


For the purpose of arranging financing of a privatisation procedure, Arco Investeeringute AS (a 100% subsidiary of Arco Vara AS) temporarily transferred its holding in Prime Capital SIA to a related party  -  Dreiliņi-Ulbroka-1 SIA related with Mr. Viktors Savins.

In August, Prime Capital SIA, a Latvian company  where Arco Investeeringute AS has a majority holding won a land privatization auction in the Baltezers elite residential area, Garkalne region near Riga. As a result, the company obtained the right to privatize 86.19 ha residential land.  The plot was previously leased on a long-term basis to  Arco Development SIA, a subsidiary of Arco Investeeringute AS.

At the auction, the plots were sold at a price of 1.625 million euros. The purchase price has to be paid in two parts: 70% within a month after the conclusion of an agreement (the auction fee of 70,000 euros is considered as part of the first payment), the remaining 30% are paid on 31.12.2011 at the latest.  

Due to lack of available resources, the holding of Arco Investeeringute AS in Prime Capital SIA was transferred to Dreiliņi-Ulbroka-1 SIA, a company related with Mr. Viktors Savins, at a nominal price of 1,400 LVL. The transferee is obliged to resell the holding of Arco Investeeringute AS on demand with a price of 500,000 euros, which is the expected self-financing rate for  Arco Investeeringute AS in final financing of the total transaction.

The sales transaction will not have any essential economic influence as the holding was sold at nominal value, i.e. acquisition cost.

Arco Vara is a leading property development company in the Baltic areas, established in 1992.  Main activity of the company is real estate development, supported by brokerage, valuation, construction and facility management.
Company is represented in 17 cities in Estonia, Latvia, Ukraine and Bulgaria.

Lembit Tampere
CEO
Arco Vara AS
phone: +372 614 4630
This email address is being protected from spambots. You need JavaScript enabled to view it.
http://www.arcorealestate.com


18.03.2011 Arco Vara AS issued a Stock Exchange announcement: „Arco Vara associate attracts 11,4 MEUR for the development of the Tivoli project and repays SEB loan.“

Announcement states: „As the property and the holding were sold at their balance cost, they will not have a significant influence to the balance sheet and the income statement of the group. As a result of the transactions, Arco Investeeringute AS redeemed to SEB Pank all the loan in the amount of 5,432,490 EUR that was raised for acquisition of the land for the Tivoli project.“

The rectified wording follows:
The transaction was executed at book value thus the balance sheet as well as the liabilities of the group decreased by 5,4 MEUR, having a significant influence as to the liabilities and balance sheet of the group.  There is no signficant influence to the income statement of the group. As a result of the transactions, Arco Investeeringute AS redeemed to SEB Pank loans in the amount of 5,432,490 EUR.

Established in 1992, Arco Vara is one of the leading real estate development companies in the Baltic countries. The main activity of the company is real estate development, supported by appraisal, construction and real estate administration.
The company has offices in 17 cities in Estonia, Latvia, Ukraine and Bulgaria.

Lembit Tampere
Member of the Management Board

Arco Vara AS
Tel: +372 614 4630
This email address is being protected from spambots. You need JavaScript enabled to view it.
http://www.arcorealestate.com


Yesterday, 23.11.2011 Arco Invest EOOD, a Bulgarian subsidiary of Arco Investeeringute AS (a 100% subsidiary of Arco Vara AS) signed a deed of conveyance with the company Cleves EOOD in order to transfer 21 apartments and 13 parking places in the Boulevard Residence with a total value of 4.3 mio. euros, whereof 2.5 mio. were paid in advance in March 2008 and 1.8 mio. will be paid in November 2011.

It is the first stage of a two-stage transaction. In addition to the yesterday's transaction, Cleves EOOD is obliged to buy another 16 apartments and 18 parking places by the end of 2012 with a total price of 2.8 mio. euros.

The first interim sales agreement for the Boulevard Residence apartments, signed in March 2008, established that Cleves EOOD would buy 45 unfinished apartments and 60 parking places with a price of 8.1 mio. euros. Of this amount, 2.5 mio. euros were paid in advance in March 2008. At the request of Cleves EOOD, the apartments were rebuilt in order to increase their area, which reduced the number of apartments to 37. As the apartment prices on the real estate market have dropped compared to the time the interim agreement was concluded, and Cleves EOOD additionally gave up 29 parking places, the final transaction price is 7.1 mio. euros. All the above mentioned prices include 20% Bulgarian VAT.

The Boulevard Residence is located in the centre of Sofia, at the Madrid Boulevard. There are 87 apartments and an underground parking space for 164 cars in the building with a total area of 25,000 m2. Besides that, there are commercial spaces and modern office spaces on the three lowest floors.

The residential and business development Madrid in Sofia was finished in June 2010. At present, the project is in the stage of conclusion of real right agreements for booked apartments and selling of vacant apartments. Additional information: http://www.arcoinvest.bg/.

Established in 1992, Arco Vara is one of the leading real estate development companies in the Baltic countries. The main activity of the company is real estate development, supported by appraisal, construction and real estate administration.
The company has offices in 17 cities in Estonia, Latvia, Ukraine and Bulgaria.

Egert Paulberg
Controller
Arco Vara AS
Tel: +372 614 4503
This email address is being protected from spambots. You need JavaScript enabled to view it.
http://www.arcorealestate.com