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ARC1T - Arco Vara AS News Story

€1.6 -0.0  -0.6%

Last Trade - 16/04/21

Sector
Financials
Size
Micro Cap
Market Cap £12.5m
Enterprise Value £19.8m
Revenue £12.2m
Position in Universe 504th / 795

Arco Vara AS waived the option to purchase a development project in Sofia

Fri 18th December, 2020 1:39pm
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In November 2017, Arco Vara AS entered into an agreement for the acquisition
of a development project in the suburbs of Sofia, near the village of Lozen.
The first stage of the real estate acquisition transaction, with a total area
of 5.3 ha, was completed in January 2018. The second stage, with a total area
of 6.8 ha, was to be completed in December 2020.

Due to the freezing of the first development stage and the health care crisis,
Arco Vara AS decided not to increase the land bank in Bulgaria. Upon
cancellation of the transaction, Arco Vara AS paid a withdrawal fee of 250,000
euros in agreement with the seller. The seller of the property has no
additional claims against Arco Vara AS.

"We consider it necessary to increase the growth of Arco Vara's development
volumes in Bulgaria in the long term and in a linear manner. Completing this
transaction in today's world would have meant an exponential growth in the
Bulgarian market and a significant increase in the group's business risk in
the light of what happened to the Iztok project. Upon abandonment of the
transaction, the distribution of Arco Vara's equity will remain approximately
50/50 between Estonia and Bulgaria".



Miko-Ove Niinemäe
 CEO
 Arco Vara AS
 Tel: +372 614 4630
 miko.niinemae@arcovara.com
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