Arco Vara significantly increased its development volume and announced a new CEO
The unaudited financial results of real estate developer Arco Vara for 2025 reflect the company’s focus on expanding its development portfolio and advancing key projects into their next stages. According to the company’s CEO, the investments made create a foundation for sales volumes in the coming periods.
“For Arco Vara, the fourth quarter was an active period, during which we focused both on launching new projects and on the consistent advancement of existing developments,” said Kristina Mustonen, CEO of Arco Vara.
2025. During 2025, the company’s total assets more than doubled, reaching €86.2 million by the end of the year. Annual revenue amounted to €7.7 million, increasing by €208,000 compared to the previous year. Net loss for the 12-month period was €479,000, representing an improvement of €145,000 compared to the previous year.
According to Mustonen, the first three quarters of the year ended with a modest profit, while lower-than-expected sales volumes in the fourth quarter impacted the full-year result; sales activity was also limited by a low number of available units at the end of the year. “Real estate development is a cyclical business, and revenue depends largely on project completion and the handover of homes,” Mustonen explained. “Last year, we focused on increasing development volumes and launching new projects, and therefore expect the revenue from these developments to materialise in the coming periods.”
During the year, Arco Vara significantly expanded its development portfolio by acquiring new development projects in central Tallinn at the Luther Quarter and on Spordi street in Kristiine. Construction works commenced at the Spordi development, while construction also began simultaneously at the Soodi project in the Kodulahe quarter. By the end of the year, 16 out of 56 homes had been sold under preliminary sale agreements in the Spordi development, and 22 apartments and commercial units out of 66 in the Soodi 6 development. Both projects are scheduled for completion by the end of the current year.
Over the course of the year, 18 homes were sold in the Kodulahe Rannakalda development, and the sale of the remaining eight units will continue in 2026. In December, the penultimate home was sold in the Kuldlehe development in Pirita, with one apartment still available. In mid-October, the detailed plan for the Arcojärve development near Lake Harku was adopted, and the process has reached its final stage before approval. In the final month of the year, pre-sales of the first phase of the Luther Quarter also commenced.
Arco Vara also announced to the stock exchange that the Supervisory Board has appointed Rait Riim as the company’s new CEO, with his mandate beginning on 1 April 2026. Riim has 20 years of experience in the real estate sector, including serving as a member of the Supervisory Board of Arco Vara AS from 2020 to 2021. “The Supervisory Board is very pleased that Rait Riim is joining the Arco Vara team and will help deliver the company’s long-term objectives, which are to ensure the company’s growth and stable profitability,” commented Kert Keskpaik, Chairman of the Supervisory Board of Arco Vara.
In the current year, Arco Vara will focus on advancing its major projects into the next stage – including preparing for construction in the Luther Quarter and finalising the detailed plan for Arcojärve. At the same time, construction will continue at the Soodi 6 and Spordi developments, alongside active sales of completed apartments.