Revenue of the real estate developer Arco Vara increased by 36% in 2023 compared to the previous year, reaching over 18 million euros, while earning a net profit of 3.6 million euros. This year, the real estate developer continues with the residential area developments and a padel center construction in Tallinn, along with a private housing project in Bulgaria.
“In 2023, Arco Vara exceeded its goals. We reached the aim of 20% ROE and a profit margin extraordinary in the field of real estate development,” commented Miko Niinemäe, the CEO of Arco Vara, on the released financial results. He believes that the success will continue in the upcoming periods thanks to the company’s strong capital position both in terms of financial statistics and in the form of staff.
The last quarter of the previous year was especially successful for Arco Vara – its subsidiary Arco Tarc managed to complete its first project, Kodulahe’s Rannakalda phase, ahead of schedule, allowing the developer to hand over 66 completed apartments to new homeowners during the last months of the year. “The delivery of homes at Kodulahe Rannakalda began in the previous quarter, ensuring a quarterly profit of 4.5 million euros and over 17.5 million euros in sales revenue,” said Niinemäe about the results of the last quarter of the year. He added, that nearly 3 million euros’ worth of new sales were secured during this period.
Construction works also continued according to schedule in the Kuldlehe boutique residence project in Pirita – five homes with unique architectural design will be completed by the end of the first quarter of 2024. “We also have good news from the Botanica Lozen Residences project in Bulgaria where the majority of the 16 private homes have now reached their complete height,” noted the CEO. As of the end of 2023, five private homes had been sold in the scope of the project, expected to be completed in the last quarter of this year.
Arco Vara forecasts a sales revenue of 25.2 million euros and a profit of 2.2 million euros for 2024. This year, the real estate developer and its subsidiary, Arco Tarc, are ready to start two next residential development projects in Tallinn, in the Kodulahe Kvartal as well as on the shore of Lake Harku. “We have great anticipations for the projects currently in the planning stages, as we would like to start the construction works at Soodi 6 as early as in the first half of 2024 and the first stage of Arcojärve by the end of 2024,” Niinemäe revealed the upcoming plans.
Additionally, Arco Vara is building a modern padel center with around 2000 square meters of space near Kolde avenue in northern Tallinn. The new sports building will be completed by the end of 2024 and will accommodate both recreational and competitive sports. “Arco Tarc will construct the building, and Padelstar will operate the center,” Niinemäe added.