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2012


Arco Vara AS’s wholly-owned subsidiary Arco Invest EOOD has obtained a permit for use for an apartment building containing 74 apartments in the Manastriski district in Sofia. 

The Manastirski Livadi housing development project, which consists of 280 apartments and 36 commercial premises in a popular residential area in the Bulgarian capital Sofia and has an area of 36,000 gross square metres, is currently the largest project Arco Vara has ever independently developed.  

The general contractor was Planex Build OOD of Bulgarian origin, financing was provided by Piraeus Bank Bulgaria AD of Greek origin, construction supervision was provided by Vector Management Bulgaria EOOD of UK origin, and technical supervision was provided by Dikril Consult EOOD of Bulgarian origin.

The newly completed building with its 74 apartments, 6 shops and 6 studios accounts for around 27% of the total project volume. An underground car park for the entire project was completed earlier. Construction of the building began in April 2011 and was completed on time and on confirmed budget.

Two thirds of the area available for sale is covered by pre-sale agreements and within the next two quarters the premises will be transferred to the buyers. Buyers include local individuals and companies.

Arco Vara believes that the project is a success from the point of view of both the company and the customers. This is proven by the high presale rate achieved, and the fact that most of the customers are the actual apartment users.

Lembit Tampere
Member of the Management Board


Arco Vara will release its consolidated financial reporting for 2011 and 2012 on the following dates:
 
20 April 2012                Audited annual report 2011       
18 May 2012                 Unaudited interim report Q1 2012
17 August 2012           Unaudited interim report Q2 2012                 
16 November 2012     Unaudited interim report Q3 2012                
28 February 2013        Unaudited interim report Q4 2012               
19 April 2013                Audited annual report 2012

The dates of upcoming general meetings:

30 April 2012               Extraordinary general meeting
15 May 2012                Annual general meeting                       


Established in 1992, Arco Vara is one of the leading real estate development companies in the Baltic countries. The company’s main activity is real estate development, which is supported by valuation, brokerage, construction and property management. The company has offices in 17 cities in Estonia, Latvia, Ukraine and Bulgaria.

Egert Paulberg
Financial 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


A member of the supervisory board of Arco Vara AS, Aare Tark, has submitted an application for stepping down from the supervisory board. Accordingly, a new member of the supervisory board will be elected at the annual general meeting on 15 May 2012.


Egert Paulberg
Financial 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


NOTICE OF THE ANNUAL GENERAL MEETING, ITS AGENDA AND PROPOSED RESOLUTIONS

Dear shareholder of Arco Vara AS
Notice is hereby given that the annual general meeting of Arco Vara AS (registry number 10261718; registered office at Jõe 2B, Tallinn) will be held in the Studio II meeting room of the conference centre of Park Inn by Radisson Central, Narva mnt 7C, Tallinn on 15 May 2012 at 9.00 am.

The agenda of the annual general meeting:

1. Approval of the annual report for 2011
The supervisory board proposes that the shareholders approve the annual report for 2011.

2. Resolution on the allocation of profit
The supervisory board proposes that the shareholders transfer the net loss for the year ended 31 December 2011 of 3,381,662 euros to retained earnings.

3. Election of a member of the supervisory board
A member of the supervisory board of Arco Vara AS, Aare Tark, has submitted an application for stepping down from the supervisory board. To date, Arco Vara AS has received no proposals for a candidate of a new member of the supervisory board.

4. Appointment of the auditor

The materials of the annual general meeting will be available on the website of Arco Vara AS at http://www.arcorealestate.com/en/investor-info/general and in the registered office of Arco Vara AS at Jõe 2B, Tallinn on business days from 9 am to 5 pm.

Questions regarding the agenda items may be sent by email to This email address is being protected from spambots. You need JavaScript enabled to view it.. The questions together with the answers will be published on the website of Arco Vara AS. All shareholders have a lawful right to obtain information from the management board about the operation of the company. Shareholders whose shares represent at least one twentieth of the share capital of Arco Vara AS may request that additional items be added to the agenda provided they submit their request at least 15 days before the general meeting, i.e. by 1 May 2012 at the latest, and they may propose a resolution on any or all agenda items, provided they submit the proposal at least three days before the general meeting, i.e. by 12 May 2012 at the latest. Shareholder requests and proposals   have to be submitted by email to This email address is being protected from spambots. You need JavaScript enabled to view it. and they will be published in line with legal requirements.

The list of shareholders eligible to vote will be prepared seven days before the general meeting, i.e. on 8 May 2012 as at 23:59.

Registration of attendees begins on 15 May 2012 at 8:45 am. For registration, please bring an identity document. A proxy must have a written proxy document or other documents verifying the right to act as a proxy. A shareholder may notify Arco Vara AS before the meeting of the appointment of a proxy or the revocation of a proxy appointment by sending relevant digitally signed notice to This email address is being protected from spambots. You need JavaScript enabled to view it. on 12 May 2012 at the latest.

In the stock exchange announcement of 30 March 2012 Arco Vara stated that the notice of the annual general meeting would be published in a national daily newspaper on 20 April 2012. Due to technical reasons, the notice of the annual general meeting including the exact time, location and agenda will be published in Postimees a day later, i.e. on 21 April 2012.


Yours sincerely
Management Board of Arco Vara AS


The supervisory board of Arco Vara AS approved Arco Vara AS’s annual report for 2011 together with the proposal for covering the loss at a meeting held on 20 April 2011.

The supervisory board resolved to submit the annual report and the proposal for covering the loss, both prepared by the management board, to the annual general meeting as presented by the management board.

The audited annual report for 2011 is available on the website of the NASDAQ OMX Tallinn Stock Exchange and on that of Arco Vara at http://www.arcorealestate.com . The annual report is also available for review at the company’s offices at Jõe 2B in Tallinn.

Arco Vara’s audited consolidated revenue for 2011 was 43.1 million euros. The Group’s revenue for 2010 was 21.1 million euros. Revenue grew by 104%. The audited consolidated net loss for 2011 was 3.4 million euros. The net loss for the comparative period was 0.3 million euros. 

Arco Vara also specifies the information disclosed in the annual report for 2010 in respect of key management personnel: 

  • In the annual report for 2010 the Group defined as key management personnel the member of the management board and the members of the supervisory board of the Group’s parent company and the members of the management boards of the Group’s subsidiaries. Based on that definition, Arco Vara AS should have disclosed in its annual report for 2010 the total amount of remuneration provided to its key management personnel, i.e. the amount should have included the remuneration of the members of the management boards of the Group’s subsidiaries.
  • Based on the definition of key management personnel presented in the annual report for 2010, the remuneration of key management personnel including relevant taxes should have been 445 thousand euros for 2010 and 500 thousand euros for 2009. 
  • Arco Vara AS did not disclose in the annual report for 2010 that the remuneration of key management personnel included termination benefits with relevant taxes: 5 thousand euros for 2010 and 51 thousand euros for 2009.
  • The remuneration of key management personnel disclosed in the annual report of Arco Vara AS for 2010 differs from the amount of the remuneration of key management personnel that ought to have been disclosed in line with the definition of key management personnel to the extent of the remuneration of the members of the management boards of the subsidiaries of Arco Vara AS.
  • Arco Vara AS has decided to change the definition of key management personnel. From now on the Group’s key management personnel are members of the management board and supervisory board of Arco Vara AS, because only those persons have real and significant authority to influence the operation of the Group.

Established in 1992, Arco Vara is one of the leading real estate development companies in the Baltic countries. The company’s main activity is real estate development, which is supported by valuation, brokerage, construction and property management. The company has offices in 17 cities in Estonia, Latvia, Ukraine and Bulgaria .

Egert Paulberg
Financial Controller
Arco Vara AS
Tel: +372 614 4503

This email address is being protected from spambots. You need JavaScript enabled to view it.

Attachments:
AVG Annual report 2011_ENG.pdf


Arco Vara AS’s wholly-held subsidiary Arco Investeeringute AS sold its 49.4% stake in the joint venture Bišumuižas Nami SIA for 2 euros to the co-venturer SIA Linstow Baltic. By the transaction, Arco Vara disposed of its interest in Bišumuižas Nami SIA and SIA Linstow Baltic became the sole owner of the entity.

Bišumuižas Nami SIA is a company established for the development of apartment buildings that is currently inactive. The company’s loan burden extends to 13.8 million euros. Bišumuižas Nami SIA has sole control over Sportings Riga SIA, which owns an 11.2 ha plot in Riga. Arco Vara sought opportunities for exiting the project for more than a year.

The transaction has no significant impact on the group’s financial position and financial performance. However, by divesting the interest Arco Investeeringute AS also disposed of a potential obligation to support the joint venture in the development of apartment buildings and in servicing loan liabilities. In 2011 Arco Investeeringute AS financed the joint venture with 0.3 million euros.

Established in 1992, Arco Vara is one of the leading real estate companies in the Baltic countries. The company’s main activity is real estate development, which is supported by brokerage, valuation, construction and property management. The company has offices in 17 cities in Estonia, Latvia, Ukraine and Bulgaria.

Egert Paulberg
Financial 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