Based on the detailed plan approved by the Tallinn City Council, Arco Vara will build a four-storied house in the Kassisaba district of cultural and environmental value (address Tehnika 53).
According to the design prepared by the architects of JVR, the ground floors are reserved for businesses, on the second, third and fourth floor, there are 2-4-room apartments with balconies.
There are 21 parking places in the cellar; the two parking places on the street are for the customers of business areas.
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

Phone: +372 6144630

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

http://www.arcorealestate.com

 

 

 

 

 

11.02.2011: Notice on change in major holding

Arco Vara AS notifies of a change in the structure of persons having a major holding in Arco Vara AS.
The Management Board of Baltplast OÜ informed Arco Vara AS that starting from 11.02.2011, Baltplast OÜ owns 18.9805% of Arco Vara AS shares. Thus, the number of Arco Vara AS shares in the ownership of Baltplast OÜ has reduced to less than 20% of issuer’s share capital.
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

 

 

 

 

 

Stock exchange announcement

Arco Vara AS notifies of a change in the structure of persons having a major holding in Arco Vara AS.

On 14 February 2011, Firebird Republics Fund Ltd and Firebird Avrora Fund Ltd  informed Arco Vara AS of acquisition of 106,897 Arco Vara AS shares by Firebird Avrora Fund Ltd on 11 February 2011. Together with the 156,064 shares belonging to Firebird Republics Fund Ltd, they now own 5.4% (262,961) Arco Vara AS shares.
The management company of Firebird Avrora Fund Ltd is Firebird Avrora Advisors LLC and the management company of Firebird Republics Fund Ltd is Firebird Management LLC. Both management companies are managed by Eastern Star Consulting Inc.
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

 

 

Group Chief Executive’s review

In 2010, a total of 129 apartments and plots were sold in the projects of Arco Vara - 73 in Estonia, 45 in Latvia and 11 in Bulgaria. Our largest ever completely self-developed project Boulevard Residence Madrid in Sofia was granted a use permit at the end of June. Most of the commercial rental premises that were covered with preliminary contracts have already been transferred to customers and tenants have moved in. We have also signed the first real right contracts on the apartments and have transferred the apartments to customers. Our Development division continues completing apartments in the Bishumuiza-1 project in Riga and developing the Manastirski project in Sofia.

The increasing sales of the past quarters have reduced the inventory balance significantly and construction prices continue to be favourable. Therefore, we have launched new developments in order to be ready to satisfy the emerging market demand. The Group’s subsidiary AS Kolde joined forces with AS Merko Ehitus for building and financing the next phase of the Kodukolde development project. The new housing complex will consist of four apartment buildings with 100 apartment units and 40 underground garage spaces with a gross enclosed area of 8,760 square metres. The first two buildings will be completed in spring 2011. We are pleased to report that construction is on schedule and pre-completion sales exceed all expectations. We are also holding negotiations with potential business partners and banks with a view to starting and financing the construction of the Tivoli project. Subsequent to the reporting date, we have held an architectural competition and have launched preparatory site work. Construction should commence in spring 2011. In addition, at the beginning of 2011 we have announced a plan to build a four-floor apartment building in Tehnika street in Tallinn.

The Service division continues to benefit from administrative cost savings yielded by effective restructuring. Although sales have contracted too, this has happened at a slower pace. As a result, in the third quarter the division was able to post its first post-crisis quarterly operating profit of 1.3 million kroons (0.08 million euros). In 2010 the number of brokerage transactions grew by 11% year-over-year and the number of valuation reports issued increased by 25% although the number of brokers and appraisers decreased by 4%.

The division’s Bulgarian team moved to new first-class office premises in the Madrid Boulevard Residence. The division is planning to increase the number of brokers in order to be ready for the recovery of the real estate market.

During the year, the Construction division secured new contracts of 347 million kroons (22.2 million euros). At the reporting date, the order backlog amounted to 262 million kroons (16.8 million euros) compared with 80.0 million kroons (5.1 million euros) at the end of 2009. The main customers continue to be the public sector and local governments. In addition to environmental and infrastructure projects, funds are being allocated to the education sector. It should be noted that in 2010 practically all of the Group’s construction revenue was external – the proportion of internally generated sales was negligible.

The reporting period brought significant improvement to most of the Group’s financial performance indicators - both revenue and gross profit grew on a quarterly basis. Over several years, all divisions ended the third quarter with an operating profit. The reduction of fixed costs that began in 2009 has had a positive impact also on the results for 2010. Management will continue monitoring fixed costs. Compared with the previous year administrative expenses have shrunk by 26%.

To improve liquidity, the Group has disposed of a number of smaller investment properties that were not under its complete control or otherwise did not fit the corporate strategy.

In addition, the Group extended the loans taken from Piraeus Bank Bulgaria for the development of the Madrid project in Sofia and SEB Pank for the Navigator and Tivoli projects in Tallinn of 360.7 million kroons (23.1 million euros) in aggregate. As a result, the maturity date of the loan taken for the Madrid project was deferred by three years from 2012 to 2015 and the term of the Navigator and Tivoli projects was extended until 31 January 2011.

In December 2009 the shareholders of Arco Vara AS decided to reduce the company’s share capital. A corresponding Commercial Registry entry took effect on 16 March 2010. The reduction of share capital has curbed the volatility of the share price, has allowed more effective pricing of the share on the stock exchange (through a decrease in the difference between the bid and ask prices) and has created new opportunities for further strengthening the capital structure.

In 2010 Arco Vara AS’ wholly-held subsidiary Arco Investeeringute AS transferred its claim against Celia Crowd AS (formerly Ühendatud Kapital AS) to AS EMF Invest for 52 million kroons (3.3 million euros). The transaction improved the Group’s fourth quarter results by an exceptional sales gain of 18.9 million kroons (1.2 million euros).

Change in accounting for jointly controlled entities

The Group’s management has revised the policy for accounting for interests in jointly controlled entities. Previously, interests in jointly controlled entities were accounted for using proportionate consolidation. As from 1 January 2010, interests in jointly controlled entities are accounted for using the equity method. Management believes that the equity method provides a more faithful representation of the Group’s assets, liabilities and equity.

KEY PERFORMANCE INDICATORS

· In 2010 the Group generated revenue and other income of 358.4 million kroons (22.9 million euros), a 27% decrease year-over-year

· Operating loss for 2010 amounted to 2.0 million kroons (0.1 million euros), a 98% improvement on 2009

· Net loss was 4.6 million kroons (0.3 million euros), a 99% improvement on 2009

· Equity to assets ratio at period-end was 39.4% (end of 2009: 36.7%). Return on equity was negative (2009: negative). Return on invested capital was 1.8% (2009: negative)

· At the end of 2010, our order backlog (in the construction business) stood at 262.2 million kroons (16.8 million euros), compared with 79.6 million kroons (5.1 million euros) at the end of 2009

· In the twelve months of 2010 we sold a total of 129 apartments and plots (2009: 82).

		EEK				EUR
		12M 2010	12M 2009	Q4 2010	Q4 2009	12M 2010	12M 2009	Q4 2010	Q4 2009
In millions
Revenue and other income		358.4	493.1	129.2	131.7	22.9	31.5	8.3	8.4
Operating profit / loss		-2.0	-91.7	8.5	36.9	-0.1	-5.9	0.5	2.4
Incl. net loss from the revaluation of investment properties and inventories		-8.2	-40.6	-2.6	-40.6	-0.5	-2.6	-0.2	-2.6
Profit / loss before tax		-4.2	-363.9	15.2	3.5	-0.3	-23.3	1.0	0.2
Incl. net gain/loss from the disposal of financial assets		-2.4	-4.5	0.0	0.0	-0.2	-0.3	0.0	0.0
Net profit / loss		-4.6	-363.1	15.3	5.6	-0.3	-23.2	1.0	0.4
EPS (in kroons and euros)		-0.92	-76.26	3.26	1.46	-0.06	-4.87	0.21	0.09
Total assets at period end		1,104.4	1,224.4			70.6	78.3
Invested capital at period end		931.5	1,015.3			59.5	64.9
Net loans at period end		430.2	500.8			27.5	32.0
Equity at period end		435.4	449.8			27.8	28.7
Average loan term (in years)		0.8	1.2			0.8	1.2
Average interest rate of loans (per year)		6.4%	5.9%			6.4%	5.9%
ROIC (rolling, 4 quarters)		1.8%	neg			1.8%	neg
ROE (rolling, 4 quarters)		neg	neg			neg	neg
Number of staff at period end		153	171			153	171

REVENUE AND PROFIT

		EEK				EUR
		12M 2010	12M 2009	Q4 2010	Q4 2009	12M 2010	12M 2009	Q4 2010	Q4 2009
In millions
Revenue and other income
Service		30.0	38.0	8.3	9.3	1.9	2.4	0.5	0.6
Development		196.7	218.1	82.8	49.8	12.6	13.9	5.3	3.2
Construction		139.6	277.2	39.7	75.7	8.9	17.7	2.5	4.8
Eliminations		-7.9	-40.2	-1.6	-3.1	-0.5	-2.6	-0.1	-0.2
Total revenue and other income		358.4	493.1	129.2	131.7	22.9	31.5	8.3	8.4
Operating profit / loss
Service		-2.7	-16.6	-1.4	-7.5	-0.2	-1.1	-0.1	-0.5
Development		27.1	-36.8	21.8	56.7	1.8	-2.4	1.3	3.6
Construction		-3.6	-8.1	-4.7	-5.3	-0.2	-0.5	-0.3	-0.3
Eliminations		0.0	0.0	-0.6	-0.2	0.0	0.0	0.0	0.0
Unallocated expenses		-22.8	-30.2	-6.6	-6.8	-1.5	-1.9	-0.4	-0.4
Total operating profit / loss		-2.0	-91.7	8.5	36.9	-0.1	-5.9	0.5	2.4
Interest income and expense		-18.2	-22.6	-10.6	-10.7	-1.2	-1.4	-0.7	-0.7
Other finance income and expense		15.9	-249.7	17.3	-22.7	1.0	-16.0	1.2	-1.4
Income tax expense		-0.3	0.9	0.1	2.1	0.0	0.1	0.0	0.1
Net profit / loss		-4.6	-363.1	15.3	5.6	-0.3	-23.2	1.0	0.4

The Construction division’s fourth quarter results were adversely affected by a write-down of receivables by 4.6 million kroons (0.3 million euros), conducted due to the bankruptcies of a major customer and a consortium partner.
The main cost cuts have been made and managing and reducing expenses has become a daily routine at all units. For the time being, the Group’s main focus is on increasing sales, completing projects in progress and launching new ones, and improving liquidity by selling new projects and inventories.

Finance income and expense for the fourth quarter were influenced the most by the sale of a receivable from Ühendatud Kapital AS. Despite a decrease in revenue and other income across all divisions, thanks to determined cost control the Group’s operating loss has decreased by 98% compared with 2009.

CASH FLOWS

			EEK			EUR
			12M 2010	12M 2009		12M 2010	12M 2009
In millions
Cash flows from operating activities			27.4	-51.1		1.8	-3.3
Cash flows from investing activities			95.1	104.9		6.1	6.7
Cash flows from financing activities			-121.3	-145.2		-7.8	-9.3
Net cash flow			1.2	-91.4		0.1	-5.8
Cash and cash equivalents at beginning of period			64.7	156.1		4.1	10.0
Effect of movements in exchange rates			0.0	0.0		0.0	0.0
Cash and cash equivalents at end of period			65.9	64.7		4.2	4.1

In May 2010 Arco Vara AS redeemed commercial paper of 18.9 million kroons (1.2 million euros) before maturity.

In December 2010 Arco Vara AS repaid early 4.5 million kroons (0.3 million euros) of the loan received from LHV bank.

There were no other exceptional loan settlements in 2010. Interest payments accounted for 35.1 million kroons (2.2 million euros) of net financing cash flows. Scheduled and inventory sale-related settlements of loan principal totalled 109.3 million kroons (7.0 million euros). The largest proportion of credit limits utilised during the period was related to the completion of the Madrid project and the construction of the last but one phase in the Kodukolde project that accounted for 67.4 million kroons (4.3 million euros) of the total.

The largest current liabilities to be settled in the next 12 months comprise:

· The loan taken for the Boulevard Residence Madrid project in Sofia of 238.1 million kroons (15.2 million euros) in aggregate has been reclassified to current liabilities because due to the write-down of collateral it is temporarily not in full compliance with the covenant for the value of collateral. The loan is to be repaid by 2015. According to the sales forecast and settlement schedule, as at 31 December 2010 the portion to be repaid in the next 12 months would be 72.1 million kroons (4.6 million euros).

· Loans of 102.5 million kroons (6.6 million euros) related to the Tivoli and Laeva2 projects.

· A loan of 25.5 million kroons (1.6 million euros) related to the Bishumuiza project.

· The scheduled current portion of a loan related to the Manastirski project of 31.7 million kroons (2.0 million euros).

During the year the Group made regular repayments of loans taken for the Kodukolde and Merivälja2 projects in Tallinn, the Bishumuiza-1 project in Riga, and the Madrid project in Sofia and also settlements under some cash flow generating projects (including the entire loan of the Enerpoint project). Most of the Group’s liabilities are denominated in euros.

SERVICE DIVISION

We constantly monitor expenses so as to avoid a situation where expenses are growing faster than revenue.

In connection with the revival of the housing market, we are continuing an active marketing campaign in Estonia. In addition, we are continuing partnering negotiations with other major housing and commercial real estate developers. Through effective cooperation, the number of properties brokered has increased.Our goal is to offer the customers both a wide range of services and an extensive selection of properties.

In Sofia, the Service division’s Bulgarian team moved to new first-class office premises in the Madrid Boulevard Residence. We are also planning to increase the number of brokers in order to be ready for the recovery of the real estate market in Bulgaria.

The Service division ended 2010 with an operating loss of 2.7 million kroons (0.17 million euros) compared with an operating loss of 16.6 million kroons (1.06 million euros) in 2009. The most successful quarter was the third one where the division generated an operating profit of 1.3 million kroons (0.08 million euros). Before that, the division last earned an operating profit in the third quarter of 2006. Compared with 2009, the number of brokerage transactions has grown by 11% and the number of valuation reports issued has increased by 25%.

DEVELOPMENT DIVISION

In 2010, a total of 129 apartments and plots were sold in Arco Vara projects. In Latvia, 26 apartments were sold in the Bishumuiza project and 19 residential plots in a project near Lake Mazais Baltezers. In Estonia, 41 apartments were sold in the Kodukolde project and 32 residential plots in the Merivälja project. In Bulgaria, the Group sold 11 apartments in the Madrid project in Sofia.

For building and financing the next phase in the Kodukolde project (100 apartments), we have signed a contract with ASMerkoEhitus. Construction work has commenced and is on schedule. Two out of the four buildings will be completed in spring 2011.

The Development division has acquired a property for building a nursery school in Harku rural municipality. There is a rental agreement with the local government, a construction contract with YIT Ehitus AS and a financing agreement with DnB NORD bank. Construction work has commenced and the nursery school will be completed in April 2011.

The Boulevard Residence Madrid commercial and residential building in Sofia was granted a use permit in June. Most of the commercial rental premises that were covered with preliminary contracts have been transferred to customers and tenants have moved in. We have also signed the first real right contracts on the apartments and have transferred the apartments to customers. In addition, we are negotiating with potential partners and banks for starting the construction and financing of the Tivoli project. Preparatory site work is underway and construction should begin in spring 2011.

The real estate market of the Baltic countries has stabilised. The sharpest price increase has occurred in Latvia. In response, we have increased prices also in our own development projects.

At the end of 2010, the Development division employed 26 people (31 December 2009: 23).

For further information on our projects, please refer to: www.arcorealestate.com/development.

CONSTRUCTION DIVISION

The Construction division is typically actively involved in environmental, infrastructure and civil engineering (mostly educational establishments related) projects.

At the year-end, the largest new construction contracts were the Tallinn-Muuga water and sewerage networks and facilities of 103 million kroons (6.6 million euros) and the new building of the Estonian Aviation Academy of 31 million kroons (2.0 million euros).

In 2010, the division secured new contracts of 347 million kroons (22.2 million euros). At the end of 2010, the order backlog of the Construction division stood at 262 million kroons (16.8 million euros) against 80.0 million kroons (5.1 million euros) at the end of 2009.

At the reporting date, the division employed 49 people (31 December 2009: 59 people).

Condensed consolidated statement of comprehensive income

For the period ended 31 December 2010	Note		12M 2010	12M 2009		Q4 2010	Q4 2009
EEK In thousands
Revenue from rendering of services			181,239	293,316		47,734	86,814
Revenue from sale of goods			149,423	92,274		58,586	40,908
Total revenue	2		330,662	385,590		106,320	127,722
Cost of sales	3		-254,049	-414,186		-62,978	-43,642
Gross profit / loss			76,613	-28,596		43,342	84,080
Other income	4		27,776	107,502		22,880	3,991
Distribution expenses	5		-4,734	-4,401		-1,339	-1,086
Administrative expenses	6		-63,225	-85,666		-20,803	-30,065
Other expenses	4		-38,453	-80,496		-35,586	-20,024
Operating profit / loss			-2,023	-91,657		8,494	36,896
Finance income	7		26,448	8,152		16,541	-3,446
Finance expenses	7		-28,616	-280,419		-9,851	-29,971
Profit / loss before tax			-4,191	-363,924		15,184	3,479
Income tax expense			-398	868		67	2,103
Profit / loss for the period			-4,589	-363,056		15,251	5,582
Profit / loss attributable to owners of the parent	8		-4,385	-361,618		15,455	6,910
Loss attributable to non-controlling interests			-204	-1,438		-204	-1,328
Other comprehensive income / expense
Exchange differences on translating foreign operations			0	303		-178	40
Total other comprehensive income / expense			0	303		-178	40
Total comprehensive income / expense for the period			-4,589	-362,753		15,073	5,622
Total comprehensive income / expense attributable to owners of the parent			-4,385	-361,315		15,277	6,950
Total comprehensive expense attributable to non-controlling interests			-204	-1,438		-204	-1,328
Earnings per share (in EEK)
- Basic			-0.92	-76.26		3.26	1.46
- Diluted			-0.92	-76.26		3.26	1.46

For the period ended 31 December 2010	Note		12M 2010	12M 2009		Q4 2010	Q4 2009
EUR In thousands
Revenue from rendering of services			11,583	18,746		3,051	5,548
Revenue from sale of goods			9,550	5,897		3,744	2,614
Total revenue	2		21,133	24,643		6,795	8,162
Cost of sales	3		-16,237	-26,471		-4,025	-2,789
Gross profit / loss			4,896	-1,828		2,770	5,373
Other income	4		1,775	6,871		1,462	255
Distribution expenses	5		-302	-281		-86	-69
Administrative expenses	6		-4,041	-5,475		-1,330	-1,922
Other expenses	4		-2,458	-5,145		-2,274	-1,280
Operating profit / loss			-130	-5,858		542	2,357
Finance income	7		1,690	521		1,057	-220
Finance expenses	7		-1,829	-17,922		-630	-1,915
Profit / loss before tax			-269	-23,259		969	222
Income tax expense			-25	55		4	134
Profit / loss for the period			-294	-23,204		973	356
Profit / loss attributable to owners of the parent	8		-294	-23,112		973	441
Loss attributable to non-controlling interests			0	-92		0	-85
Other comprehensive income / expense
Exchange differences on translating foreign operations			0	19		-11	3
Total other comprehensive income / expense			0	19		-11	3
Total comprehensive income / expense for the period			-294	-23,185		962	359
Total comprehensive income / expense attributable to owners of the parent			-281	-23,093		975	444
Total comprehensive expense attributable to non-controlling interests			-13	-92		-13	-85
Earnings per share (in EUR)
- Basic			-0.06	-4.87		0.21	0.09
- Diluted			-0.06	-4.87		0.21	0.09

Condensed consolidated statement of financial position

As at 31 December	Note		2010	2009		2008
In EEK thousands
Cash and cash equivalents			65,858	64,724		156,061
Investments			0	0		40,416
Receivables	9		90,130	150,939		276,541
Prepayments			3,004	2,999		6,077
Inventories	10		559,215	754,805		827,237
Biological assets			0	0		3,680
Total current assets			718,207	973,467		1,310,012
Investments			15,588	17,853		216,025
Receivables			1,189	2,635		921
Investment property	11		358,104	219,129		157,367
Property, plant and equipment			10,994	10,545		41,664
Intangible assets			312	812		12,475
Total non-current assets			386,187	250,974		428,452
TOTAL ASSETS			1,104,394	1,224,441		1,738,464
Loans and borrowings	12		424,433	371,615		223,598
Trade and other payables	13		78,828	83,621		124,190
Deferred income			72,501	81,902		64,172
Provisions			21,555	43,571		37,999
Total current liabilities			597,317	580,709		449,959
Loans and borrowings	12		60,316	186,578		454,048
Other liabilities			11,337	6,278		1,418
Provisions			0	1,100		3,191
Total non-current liabilities			71,653	193,956		458,657
TOTAL LIABILITIES			668,970	774,665		908,616
Share capital			47,417	952,842		952,842
Share premium			0	0		712,514
Statutory capital reserve			31,463	31,463		31,463
Retained earnings / accumulated losses			356,544	-530,537		-862,979
Own shares			0	-3,992		-3,992
Total equity attributable to equity holders of the parent			435,424	449,776		829,848
Non-controlling interests			-1,103	-1,191		3,614
Total equity			436,527	450,967		826,234
TOTAL LIABILITIES AND EQUITY			1,104,394	1,224,441		1,738,464
As at 31 December	Note		2010	2009		2008
In EUR thousands
Cash and cash equivalents			4,209	4,137		9,974
Investments			0	0		2,583
Receivables	9		5,760	9,647		17,674
Prepayments			192	192		388
Inventories	10		35,740	48,241		52,870
Biological assets			0	0		235
Total current assets			45,901	62,217		83,724
Investments			996	1,141		13,806
Receivables	9		76	168		59
Investment property	11		22,887	14,005		10,058
Property, plant and equipment			703	674		2,663
Intangible assets			20	52		798
Total non-current assets			24,682	16,040		27,384
TOTAL ASSETS			70,583	78,257		111,108
Loans and borrowings	12		27,126	23,750		14,290
Trade and other payables	13		5,038	5,344		7,937
Deferred income			4,634	5,234		4,101
Provisions			1,378	2,785		2,429
Total current liabilities			38,176	37,116		28,757
Loans and borrowings	12		3,855	11,925		29,019
Other liabilities			724	400		91
Provisions			0	70		204
Total non-current liabilities			4,579	12,395		29,314
TOTAL LIABILITIES			42,755	49,511		58,071
Share capital			3,030	60,897		60,897
Share premium			0	0		45,538
Statutory capital reserve			2,011	2,011		2,011
Retained earnings / accumulated losses			22,787	-33,907		-55,154
Own shares			0	-255		-255
Total equity attributable to equity holders of the parent			27,828	28,746		53,037
Non-controlling interests			-70	-76		231
Total equity			27,758	28,670		53,268
TOTAL LIABILITIES AND EQUITY			70,583	78,257		111,108

Condensed consolidated statement of cash flows

			EEK			EUR
For the period ended 31 December 2010	Note		12M 2010	12M 2009		12M 2010	12M 2009
In thousands
Loss for the period			-4,589	-363,056		-293	-23,204
Interest income and interest expense	7		18,163	22,595		1,161	1,444
Gain/loss on sale of subsidiaries and interests in jointly controlled entities	7		-1,328	4,492		-85	287
Gain/loss on other long-term investments	7		-18,246	-2,001		-1,166	-128
Impairment losses on financial assets	7		1,788	18,888		114	1,207
Share of profits and losses of equity accounted investees			2 841	225,284		182	14,398
Depreciation, amortisation and impairment losses on property, plant and equipment and intangible assets	3, 6		2,115	4,975		135	318
Gain/loss on the sale of property, plant and equipment and intangible assets	4		15	1,550		1	99
Gain/loss on the sale of investment property	4		-2,887	-1,088		-185	-70
Change in the fair value of investment property and biological assets	4, 11		30,021	-24,265		1,919	-1,551
Gain/loss on inventory write-downs and reversals of inventory write-downs	3		-21,868	64,905		-1,398	4,148
Exchange gains and losses	7		-1,050	2,823		-67	180
Income tax expense			398	-868		25	-55
Operating cash flow before working capital changes			5,373	-45,766		343	-2,927
Change in receivables and prepayments			-26,119	30,546		-1,669	1,952
Change in inventories			37,490	7,527		2,396	481
Change in biological assets			0	3,680		0	235
Change in payables and deferred income			10,653	-47,037		681	-3,006
NET CASH FROM / USED IN OPERATING ACTIVITIES			27,397	-51,050		1,751	-3,265
Acquisition of property, plant and equipment and intangible assets			-628	-1,961		-40	-125
Proceeds from sale of property, plant and equipment and intangible assets			25	5,729		2	366
Acquisition of investment property	11		-3,725	-2,776		-238	-177
Proceeds from sale of investment property			24,530	8,581		1,568	548
Acquisition of subsidiaries and interests in jointly controlled entities			-500	-585		-32	-37
Proceeds from sale of investments in subsidiaries and jointly controlled entities			23,105	69,479		1,477	4,441
Proceeds from sale of other investments			0	29,383		0	1,878
Loans granted			-3,613	-12,768		-231	-816
Repayment of loans granted			52,078	5,878		3,328	377
Interest received			3,809	3,929		243	251
NET CASH FROM INVESTING ACTIVITIES			95,081	104,889		6,077	6,706
Proceeds from loans received			65,157	115,005		4,164	7,350
Settlement of loans and finance lease liabilities			-151,386	-226,560		-9,675	-14,480
Interest paid			-35,070	-33,662		-2,241	-2,150
NET CASH USED IN FINANCING ACTIVITIES			-121,299	-145,217		-7,752	-9,280
NET CASH FLOW			1,179	-91,378		76	-5,839
Cash and cash equivalents at beginning of period			64,724	156,061		4,137	9,974
Increase / decrease in cash and cash equivalents			1,179	-91,378		76	-5,839
Effect of exchange rate fluctuations on cash held			-45	41		-4	2
Cash and cash equivalents at end of period			65,858	64,724		4,209	4,137

The whole report you can find here .

Arco Investeeringud AS, a 100% associate of Arco Vara, transferred its Tivoli development project properties to its subsidiary Tivoli Arendus OÜ. This transaction was followed by the transfer of the 50% holding of Tivoli Arendus OÜ to International Invest Project OÜ. 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.
80% of shares in International Invest Project OÜ belong to Natalia Levina, citizen of Russian Federation.
By attracting a partner to the Tivoli Arenduse OÜ, the group will receive additional funds in an amount of 6 million EUR for financing the construction, which makes it possible to proceed with development of the Tivoli project and start with a new residential area construction already in autumn 2011.  In an architectural contest held in 2010, Brunow Maunula Architects from Finland became the winner. In the first stage, up to 170 apartments will be built and the first apartments are expected to be finished in Q3 2012.
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

 

Information regarding an alienation of Arco Investeeringute AS (100% Arco Vara AS daughter company) daughter company shares in Wilson Kinnisvara OÜ in November 2010 did not qualify as publishable information according to the Company.  Management of the Company has decided to further clarify the transaction as information regarding it circulating in media since 31.03.2011 is misleading.

Total value of the transaction was 23 Million EEK (1,4 Million EUR) consisting of share sale of 3,3 Million EEK (0,2 Million EUR) and alienation of loans of the Company towards Wilson Kinnisvara OÜ to the buyer in amount of 19,7 Million EEK (1,3 Million EUR).  The Company loans were alienated against cash payment.

Economic result of the transaction was a profit of 2,7 Million EEK (0,2 Million EUR).  The Company earned from realisation of 80 Paldiski Rd., main asset of Wilson Kinnisvara OÜ, through alienation of shares and owner loans a total of 23 Million EEK (1,5 MEUR).

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 Tampre
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