In the first quarter, Arco Vara earned sales revenue of 302,000 euros and a net profit of 16,000 euros. “The financial result simply reflects the fact that no real estate objects were completed in the first months of the year. In contrast, two apartment buildings are being completed this quarter. The sales and profit figures will demonstrate it accordingly,” explained Miko Niinemäe, CEO of Arco Vara.
In the first quarter of 2022, Arco Vara, which develops integrated living environments, focused on securing the group’s future plans. “An important change is the establishment of our own general contracting company Arco Tarc, thanks to which we can ensure efficient construction activities for our developments. The Arco Tarc team currently employs five specialists in their field, whose first object is the Kodulahe Rannakalda,” said Miko Niinemäe, CEO of Arco Vara.
According to Niinemäe, both sales volumes and construction prices must be taken into account in the development of Arco Vara’s premium class development Rannakalda. “Considering that the fluctuation of construction prices also affects sales prices and the completion of the houses is planned for the beginning of 2024, we do not plan to rush to pre-sale. We have signed sales contracts for approximately 30% of the total volume in the early stages of the project and will continue at a calm pace.” According to the CEO, when considering the rising interest rates, it is gratifying that Rannakalda’s 18 million development loan from Coop Pank has been concluded with a fixed interest rate and there is no need to worry about Euribor fluctuations in the coming years.
The completion of Kodulahe apartment buildings at Pagi 3 and Pagi 5 is expected in the second quarter. According to Niinemäe, the work is on schedule and pre-sale agreements have been concluded for all apartments. “Real estate development is cyclical, which means that the company receives income when an object is completed. Therefore, we plan to announce completely different economic indicators by the end of this quarter,” Niinemäe promised.
Arco Vara will continue to operate in Bulgaria, where the development of Botanica Lozen private residences is approaching the milestone of applying for a building permit. Miko Niinemäe added that the company’s second quarter will likely show promising results regarding the aforementioned project. “Currently, the buildings are still in the design phase, but a reservation agreement has already been signed with the first customer, and the number of interested parties for the first 16 private houses is increasing daily. The goal of our team for the next quarter is to continue the formal pre- and final sales of Kodulahe buildings and to conclude Botanica Lozen reservation agreements,” he added.