Real estate developer Arco Vara is preparing for its next investments

Real estate developer Arco Vara achieved a turnover of nearly a million euros in the first quarter of 2024. According to the company, it is preparing for the next investments.

During the first months of this year, the focus of the real estate developer Arco Vara was on selling completed apartments and preparing for planned developments. “In the first quarter, we were mainly engaged in selling completed apartments in Kodulahe and preparing for the sale of the Soodi 6 development. In addition, we have continued construction in Bulgaria and the detailed planning process in Arcojärve,” said Miko Niinemäe, CEO of Arco Vara.

According to the developer’s quarterly report, a larger sales revenue is planned for the end of the year. Arco Vara’s turnover in the first quarter was 990,000 euros, the majority of which was made up of real estate sales in the group’s own development projects. The net loss for the first quarter was 349,000 euros. Although sales revenue and profit were slightly lower than planned, according to Niinemäe, the company’s capitalization is still very good. “Our equity ratio to assets is close to 60%, and the four-quarter return on equity is close to the set target of 20%,” noted the company’s CEO.

The company’s near-term plans focus on selling existing developments and preparing for new projects. “Looking into the next quarter, our main challenge will be selling completed homes in the Kodulahe and Kuldlehe buildings,” shared Niinemäe. “In addition, we consider it very important to acquire a new development property, which ensures the sustainability and growth of our real estate business over the next five years,” revealed the CEO about the company’s upcoming investment plans.

In Põhja-Tallinn, a padel center built by Arco Vara will be completed at the end of this year, and the developer predicts a slight decrease in the final construction cost. “Arco Tarc is constructing the building, and Padelstar will operate the center,” added Niinemäe.

Development and construction work continue not only in Estonia but also in Bulgaria. Construction of Botanica Lozeni private houses near Sofia is on schedule, and Arco Vara expects to receive a building permit for the next phase in the current quarter. “This will allow us to start selling and building the next buildings in a favorable market situation,” said the company’s CEO.

Arco Vara forecasts a turnover of 24.9 million euros and a profit of 2 million euros for 2024.