Arco Vara to exit Bulgarian real estate market

Real estate developer Arco Vara has announced its intention to exit the Bulgarian market in order to focus more strongly on its core market in Estonia. The company has initiated a strategic withdrawal process.

According to Kristina Mustonen, CEO of Arco Vara, this is a forward-looking step that allows the company to concentrate its resources on key developments in Estonia. “Our large-scale project in the Luther Quarter – one of the most attractive development areas in Tallinn – requires strong leadership, attention, and financial capacity. By freeing up resources from Bulgaria, we are better positioned to unlock the growth potential of our Estonian projects and strengthen our presence in the local market,” said Mustonen.

The company has already begun the process of selling its Bulgarian subsidiary and has attracted interest from several local developers. Prospective buyers are invited to submit their offers for acquiring the Bulgarian business.

Kert Keskpaik, chairman of the Supervisory Board of Arco Vara, emphasized that the decision was not made lightly, as Arco Vara has achieved significant milestones in Bulgaria, including building a strong local team and delivering high-quality developments. “Nevertheless, we believe that focusing our efforts in Estonia is strategically sound for ensuring Arco Vara’s long-term growth and increasing shareholder value. The potential of our Estonian projects is now greater than ever,” he stated.

Arco Vara entered the Bulgarian market in 2006 and has since developed several comprehensive residential environments in Sofia, including the Manastirski Livadi development in the southern part of the capital, Iztok Parkside in the city center, the Madrid BLVD commercial and residential building, and the Botanica Lozen residential community.