Arco Invest EOOD, subsidiary of Arco Vara AS, has concluded the final sale agreement for the sale of the commercial building Madrid BLVD in the capital of Bulgaria. The transaction cost 9.1 million euros - after fulfilling the obligations, Arco Vara received 4 million euros, which will be directed to the next stages of Kodulahe and the development of the planned Arcojärvi residential area by Lake Harku.
Madrid BLVD, a commercial and residential building developed by Arco Vara, was completed in 2010. The building, with two underground and nine above-ground storeys, includes a parking house, apartments, shopping centre and offices. All apartments in the building are sold, but Arco Vara was still involved in the lease of commercial and office premises, amounting to nearly 7,500 m2 in total.
CEO of Arco Vara Miko Niinemäe comments: “Arco Vara's strategy for the next few years envisages the development of high-quality residential real estate. Dealing with commercial premises requires a separate team, and operating only one building makes the overall cost rather high. The transaction shows that we continue to focus on building 200 homes every year.”
Three companies were founded to finalise the sale: Office Cherkovna EOOD, Oborishte Premium Apartments EOOD and Trade Center Cherkovna EOOD. The new companies remained in 100% ownership of the Arco Vara group until the sale was finalised.
Tiina Malm
CFO
Arco Vara AS
Tel: +372 614 4630
tiina.malm@arcovara.com
