Arco Vara allocates capital released from the sale of its padel venue to residential developments
Arco Vara has sold the Helme padel venue in Tallinn to focus on its core business – the development of integrated living environments. The real estate developer will invest the capital released through the transaction in the Luther Quarter and Arcojärve development projects.
“Over the past few years, Arco Vara has expanded its residential development portfolio, and we have now reached the stage where our focus is on the consistent execution of these large-scale projects. Capital should be allocated where it creates the greatest long-term value for the company, homebuyers and investors. The sale of the Helme padel venue is part of that strategy,” said Rait Riim, CEO of Arco Vara.
The padel venue, developed by Arco Vara on Helme 18 address in Tallinn, was sold for EUR 2.88 million, including VAT, exceeding the asset’s carrying value. The company will primarily use the capital released through the transaction to finance the development of the Luther Quarter and Arcojärve projects.
“The Luther Quarter and Arcojärve will be among the most significant development projects shaping Tallinn’s urban environment in the coming years. Delivering projects of this scale requires both a strong financial position and a clear strategic focus. We are allocating our capital where we can create the greatest long-term value,” Riim added.
2024. Completed in 2024, the Helme padel venue was developed to expand sports facilities in North Tallinn and create added value for the surrounding community. The venue will continue to be operated by Padelstar, and Arco Vara will remain committed to supporting the growth of padel after the sale of the property.
“Padel is one of the fastest-growing sports and brings people together. We intend to continue supporting its development. Earlier this year, we signed a sponsorship agreement with the Estonian Padel Association to support the development of young athletes and their participation in international competitions,” said Riim.
Arco Vara is currently developing two major residential projects – the Luther Quarter in central Tallinn and the Arcojärve residential quarter by Lake Harku. With a total investment of nearly EUR 200 million, the Luther Quarter will become a modern mixed-use district featuring homes, offices, retail and service space, as well as a public park. The Arcojärve development will create an integrated residential community comprising approximately 400 homes, a public waterfront area and community infrastructure. The capital released from the sale of the Helme padel venue will be invested in the development of these projects.
In addition, construction is currently underway at the Spordi Street development in Kristiine and the Soodi development in the Kodulahe district, both of which are scheduled for completion by the end of this year.