In the third quarter, residential real estate developer Arco Vara continued its construction and sales activities as planned and is expecting a sales revenue of 18.2 million euros and a profit of 2.7 million euros this year.
“Summer is traditionally the low season in the real estate market, but this year it did not apply to Arco Vara, as the third quarter showed,” said Miko Niinemäe, the CEO of Arco Vara. According to him, the team has been successful in pre-sales and the number of inquiries for homes has been growing throughout the year. Although during the first 9 months of 2023, the apartment buildings of Arco Vara did not reach the stage of final sales yet, the company has already started delivering newly completed apartments in the Rannakalda development this month, and according to the plans, 65 clients will receive a new home during the last quarter of the year.
“Arco Vara’s balance sheet and equity ratio remain very strong, and the rise in interest rates has not significantly affected our cash flow. Building on this, we will continue to sell and market homes as planned which should allow us to reach a profit of nearly 3 million euros already this year,” said the CEO.
Since in the third quarter, apartment buildings had not yet entered into final sale contracts, the group’s sales revenue of 652,000 euros for the 9 months of 2023 is much less than the revenue of 13.2 million euros for the same period of the previous year. The company’s net loss was 928,000 euros.
In addition to the Rannakalda development, where the final sales of the apartments are planned for the next year, the development of the Kodulahe area located by the Stroomi beach continues at Soodi 6. In September, the winner of the architectural competition for the Soodi 6 property was announced. Niinemäe introduced the winning work: “The contest was won by architectural bureau APEX whose solution for outdoor area connects the Stroomi beach area of the Kodulahe development with the light traffic area of the Paldiski road, focusing on the safety of road users and the compactness of the walkways.”. Similarly to the Rannakalda development, the main contractor for the construction of Soodi 6 will be Arco Vara’s subsidiary Arco Tarc, which was awarded three internationally recognized ISO certificates last quarter.
Construction works are also underway in Pirita, where a luxurious Kuldlehe boutique residence with only five apartments will be built. The building reached its final height in September, and according to the CEO of Arco Vara, the unique homes there will be ready in the first half of 2024.
“In addition, construction activities continue in Botanica Lozen, where 3 private homes out of 16 have found a happy buyer. According to the building schedule, the handover of the homes should take place in the second half of 2024, including the start of the new building phase of 24 homes,” the CEO described business operations in Bulgaria.