Arco Vara brings in a local partner for its Bulgarian project
Arco Vara, a developer of integrated living environments, is bringing in a local partner for its residential housing project in Bulgaria and plans to complete the development over the next four years. Under the agreement, the Bulgarian company Kamaleo Invest OOD will acquire a 25% stake in the Botanica Lozen development project for a total price of €2.2 million.
According to Kristina Mustonen, CEO of Arco Vara, the transaction supports the company’s strategy to keep its primary focus on the Estonian market while allowing the Botanica Lozen development project to be completed in cooperation with a local partner.
“As a result of the negotiations, we found a partner with whom we can bring the Botanica Lozen project to completion. Involving a local developer helps ensure the smooth execution of the project and at the same time allows the transaction to free up capital for Arco Vara, which we can direct to our core market in Estonia,” said Mustonen.
Following the transaction, the parties will also sign a shareholders’ agreement and a project management agreement, under which Kamaleo Invest OOD will begin providing project management services for the Botanica Lozen development. The goal is to complete the project and finalize both the construction and the sale of the houses over the coming years.
Botanica Lozen is Arco Vara’s residential development located near the Bulgarian capital Sofia. The development is situated about a 15-minute drive from the center of Sofia and will include single-family homes built in several phases. The homes in the first phase of the development have already been completed, and preparations for the next phases are underway.
Arco Vara entered the Bulgarian real estate market in 2006 and has developed several residential projects and integrated living environments in Sofia over the years. Last year, the company announced plans to reduce its activities in the Bulgarian market and focus primarily on real estate development projects in Estonia.