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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
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http://www.arcorealestate.com