Former Chairman of the Supervisory Board Kert Keskpaik Becomes the New Head of Arco Vara

The Supervisory Board of Arco Vara has decided to strengthen shareholder control over the management of the company and to change the composition of both the Supervisory Board and the Management Board. Kert Keskpaik, until now Chairman of the Supervisory Board, takes over as head of the company. Tarmo Sild, representative of the major shareholder and former head of the company, returns as Chairman of the Supervisory Board.

“The aim of the changes is to make the company work more effectively in the interests of its shareholders. In recent years, Arco Vara has successfully developed the Kodulahe, Kuldlehe and Spordi Street projects, all of which are now in their final stage. Our future developments have the potential to deliver up to 1,000 apartments and 20,000 square metres of office space. However, technical potential alone is not enough if the return on equity target is not met or if the balance of risk and return for shareholders is not right,” said Kert Keskpaik, head of Arco Vara.

The first task of the new Management Board is to review the business plan of the Luther Quarter. The Supervisory Board considers that the current plan does not meet expectations regarding return on equity or the balance of risk and return. Further projects in the development portfolio will be assessed against the same criteria.

“The current management has made significant preparations for launching the Luther project, consolidated resources and prepared financing solutions. We have no criticism of the Management Board. But what has brought Arco Vara this far will not take it further. The Luther Quarter is the last major industrial heritage site in Tallinn awaiting a new beginning, and it must become a commercially viable product,” said Tarmo Sild, Chairman of the Supervisory Board of Arco Vara.

According to Sild, the team faces two further structural challenges. One is the systematic accumulation of knowledge, a new level of eagerness to learn. The other is a culture of success that delivers a satisfactory return to shareholders and retains customers. “The cost of capital, demographic changes, slow economic growth in Estonia and local administrative capacity call for a significantly different approach in the coming years,” Sild added.

Keskpaik thanked the outgoing head, Rait Riim, and the Arco team for the stage they have completed. “The last two changes of leadership were planned well in advance, and the new leaders had a safe onboarding period. This time the Supervisory Board decided to do things differently, and as someone who has long been involved with the company, I can now step in front of the team myself. There will be no transition period, and substantive work starts immediately,” he said.

Kert Keskpaik has been involved in real estate development and sales for more than 20 years. He has been a member of the Supervisory Board of Arco Vara since 2015 and its Chairman since July 2025. Tarmo Sild led Arco Vara from 2012 to 2020 and represents the company’s majority shareholder, Alarmo Kapital, on the Supervisory Board.

Arco Vara currently has construction works under way on Spordi Street in Kristiine and on the Soodi property of the Kodulahe Quarter in Haabersti. Both projects will be completed by the end of this year.