Arco Vara publishes audited version of last year’s results

Real estate developer Arco Vara has released its audited report on last year’s financial results, published in February. Compared to 2021, sales revenue increased by 16%, operating profit amounted to more than one million euros and net profit to nearly 700,000 euros.

According to Miko Niinemäe, the company’s CEO, the real estate market ran like an American train last year: at the beginning of the year, there was more than expected capital flowing into real estate, while the second half of the year clearly counteracted this. “The recovering number of enquiries and the increase in the number of applications for home loans from banks show positive signs, which will potentially be reflected in Arco Vara’s 2023 pre-sales,” he added. At the beginning of 2022, construction company Arco Tarc OÜ was established within the group, which laid the foundation for a new business segment by offering general construction services. The construction company’s first project was the Kodulahe Rannakalda residential development on the Stroom beachfront, where Niinemäe said that by the date of the publication of the annual report, pre-sales contracts had already been signed for nearly EUR 13 million. Construction of the earlier phases of the same development, phases IV-V, was completed in the first half of last year, when 72 new homes were handed over to customers. In the Bulgarian market, Arco Vara’s CEO considers the decision to sell the Madrid BLVD commercial building as the most important event. “As the group was not satisfied with the rental yield of the building
after several efforts, a pre-sale agreement was signed in the fourth quarter,” he explained, adding that the sale of the commercial building is expected to be completed in June this year. The €4.1 million of equity capital released by the transaction will be reinvested in new investments that offer a return on equity of at least 20% per annum. This year, the Arco Vara team will continue to develop all phases of Kodulahe, Botanica Lozen and Arcojärve, and plans to complete at least 100 more new homes. The development of the first phase of the Botanica Lozen project in Bulgaria, which started last year with the construction of 16 buildings, is continuing as expected and the company expects to issue the building permit for the next phase of the development this year. The construction contract for the Pirita Kuldlehe development was also signed this year, with an exclusive cluster of five homes scheduled for completion within a year. According to Arco Vara’s CEO, war and healthcare risks are marginal today – he says we need to keep an eye on their potential unexpected but unpredictable impact. The company’s revenue forecast for this year is EUR 14.2 million, with a profit of EUR 1.5 million. According to Arco Vara’s audited annual report, the real estate developer generated sales of EUR 13,5 million last year. The group’s operating profit was EUR 1 062 000 and net profit EUR 695 000.