Arco Vara AS Supervisory board has two new members
The shareholders general meeting of Arco Vara AS has elected attorney at law Aare Tark and entrepreneur Kalev Tanner new members of the company’s Supervisory Board, prior to the company announcing the initial public offering of its shares and the application to list on the Tallinn Stock Exchange.
Arti Arakas, Richard Tomingas and Hillar-Peeter Luitsalu will continue as members of the Arco Vara Supervisory Board. The Supervisory Board elected Arti Arakas the chairman of the Supervisory Board.
Attorney at law Aare Tark (born in 1959) has been a senior partner at law firm Tark & Co since 1991; he was the chairman of the Estonian Bar Association from 1994 to 2001 and is currently a member of the Ethics and Methodology Commission of the Estonian Bar Association. He is a recipient of the 3rd Class Order of the White Star.
Kalev Tanner (born in 1965) is the chairman of the Supervisory Board of AS E-Kindlustus Kindlustusmaakler, which is the largest insurance broker in Estonia. Kalev Tanner has also been a leading partner of Balti Cresco Investeerimisgrupi AS and the chairman of the Supervisory Board of Tallinn Stock Exchange.From 1994 to 1998 he was an investment banker at Goldman Sachs in New York and London. In 1994, Tanner acquired an MBA from the J L Kellogg Graduate School of Management, Northwestern University.
Arti Arakas (born in 1968) founded Arco Vara and was chairman of the management board of the company from 1992 to 1996. He graduated from Tallinn Polytechnical University in 1987 and continued his studies at Tallinn Technical University, where he specialised in automatic equipment and telemechanics. From 1988 to 1992 he managed the economics department of the Harju KEK. He is currently studying psychology at the University of Tartu. Arti Arakas is also a member of the management board of the Estonian Ski Association and a recipient of the 5th Class Order of the White Star.
Richard Tomingas (born in 1969) was a member of the Arco Vara Management Board from 1993 to 1997 and has been a member of the Arco Vara Supervisory Board since 1997. Tomingas graduated from the Estonian Business School with a degree in business administration. He is a recipient of the 5th Class Order of the White Star and the Vice-President of the Estonian Volleyball Association.
Hillar-Peeter Luitsalu (born in 1959) joined the group in 1993 and has been a member of different management bodies in group companies. Luitsalu graduated from the University of Tartu with a degree in law. He is also the chairman of the Management Board of the non-profit association English College Foundation, which was established by the parents of students.
Arco Vara is a leading property company in the Baltic States that was founded in Estonia in 1992 and whose activities cover property brokerage, development and construction. The company has offices in 25 cities in Estonia, Latvia, Lithuania, Ukraine, Bulgaria and Romania. At the end of Quarter 1 of 2007, the group and its joint ventures employed a total of 546 people. The audited consolidated turnover of Arco Vara AS in 2006 was 484 million kroons and net profit amounted to 217 million kroons.
On 12.07.2007 Arco Capital EOOD, a 100% subsidiary of Arco Investeeringute AS,
closed a land acquisition deal in Bulgaria in Sofia.
Acquisition cost was mEUR 7,95, of which mEUR 1,0 was paid as a down payment
already on 27.04.2007. The remaining sum will be transferred to the seller as
soon as Arco Capital EOOD has been registered in the state land register as a
new owner. The deal is financed 100% by equity.
The land plot situates in the Manastirski district, 2 km from the very center
of the city and has a construction permit. The size is 8 990 m2. According to
the zoning rights the above and underground construction volume in total is 34
In three years the company plans to construct there commercial and residential
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Financial results of Arco Vara AS in the first quarter of 2007
According to the consolidated and un-audited financial data of Arco Vara, the consolidated sales revenue of the group in the first quarter of 2007 was 291.2 million kroons and net profit amounted to 69.1 million kroons.
The sales revenue of Arco Vara in the same period of the previous year was 100.7 million kroons, which means that sales revenue almost trebled (an increase of 189%). The net profit of the company increased more than twice from 27.1 million in the same period of 2006 to 69.1 million kroons (an increase of 155%).
The company published its financial results of the first quarter alongside the notice of the first public offer of shares and the application to have its shares listed on the Tallinn Stock Exchange.
When commenting on the results, the Financial Manager of Arco Vara Sulev Luiga said that as announced in earlier announcements, some of the sales planned for 2006 were realized in the first quarter of 2007, which is why sales revenue in 2006 as a whole remained stable and a remarkable rise occurred in the first quarter of the current year. “Regardless of the shift in sales revenue bringing about the major increase, the quarter was a successful one for the company, and as a result of our chosen strategy, the general stabilisation of the sector has not had an adverse effect on the financial results of Arco Vara Group; rather the opposite,” said Luiga.
The biggest share of consolidated sales revenue, 244.4 million kroons, came from the development division, the sales revenue of the building division amounting to 18.2 million kroons and the service division achieving a revenue of 28.5 million kroons. The biggest share of the revenue of the development division came from the sale of the Keres commercial centre in Narva, the Kolde and Kase development projects in Tallinn and the sale of the Ulmana Gatves property in Riga.
The full report of the results of Arco Vara AS in the first quarter of 2007 is available in the offer circular that can be viewed on the website of the Financial Inspectorate ( www.fi.ee) and the company's website http://www.arcorealestate.com/.
Arco Capital EOOD, a 100% subsidiary of Arco Investeeringute AS, signed a land
acquisition deal in Bulgaria in Sofia.
The plot in size of 3 800 m2 situates in the city center on Madrid boulevard
and has a construction permit for 24 700 m2 of gross space.
„By the investment Arco Vara continues its long-term strategy on becoming from
brokerage business a real estate developer“, says the CEO, Mr. Viljar Arakas.
„The location of the project corresponds to our criterions that are unique on
all our markets.“
In three years the company plans to construct there residential and commercial
The acquisition is financed 100% by equity. Total capex of the project is
around mEUR 20.
It's the second development project for Arco Vara in Bulgaria.
1 EUR=15,6466 EEK
+372 6144 654
Arco Vara AS has appointed head of asset management of the firm, Mr Heigo
Metsoja to be investor relations' manager effective from July 1st 2007.
Mr Metsoja has been head of asset management of the group since 2005 and also
serves as member of the supervisory boards of Arco Investeeringute AS and AS
Tallinna Olümpiapurjespordikeskus. Before joining the group he worked as a
financial analyst for Fortum Energia AS from 1999-2001, as a credit analyst for
AS Hansapank from 2001-2003, and was CEO of AS Eesti Eine from 2003 to 2005.
Mr. Metsoja graduated from the Estonian Business School in 1999, where he
obtained a BBA degree, specializing in Money and Banking. He is continuing his
studies at the Estonian Business School to obtain an Executive MBA degree with
specialization in Accounting and Finance.
Arco Vara announced the initial public offering of its shares on June 4th, with
the offer period lasting until 4PM on June 14th. Trading with Arco Vara shares
on the Tallinn Stock Exchange will presumably commence on June 21st.
Arco Vara AS, founded in Estonia in 1992, is the leading property company in
the Baltic States whose activities cover property brokerage, development and
construction. The company is present in 25 cities in Estonia, Latvia,
Lithuania, Ukraine, Bulgaria and Romania. At the end of Quarter 1 of 2007, the
group and its joint ventures employed a total of 546 people. The audited
consolidated turnover of Arco Vara AS in 2006 was 484 million kroons and net
profit amounted to 217 million kroons.
Arco Vara AS investor relations' manager
tel:+372 6144 654
On 02.08.2007 Arco Vara Saare Kinnistud OÜ, a 50% subsidiary of Arco Vara AS,
sold a 1/3 holding in its subsidiary Varamaad Kinnisvara OÜ to AS Interfin
Investments. The sold share was pledged to Hansapank to finance the initial
acquisition of the holding. The sales price was 17,3 mEEK.
The consolidated effect of the transaction to Arco Vara in III quarter is 8,65
mEEK of net profit.
1 EUR=15,6466 EEK
+372 614 4654