Arco Vara to launch a public bond offer in September

Real estate developer Arco Vara plans to raise capital through a public bond issuance this September. The proceeds of the public offering will be directed towards the development of Arco Vara’s new project in Tallinn’s city centre – the Luther Quarter – while also broadening the company’s investor base.

According to Kristina Mustonen, CEO of Arco Vara, the bond offering will provide investors the opportunity to participate in the growth of a local company. “The public bond issue gives Arco Vara an opportunity to raise capital directly from people who believe in our vision and want to be part of our next growth phase,” said Mustonen. The bonds are planned to be listed on the Nasdaq Tallinn Stock Exchange’s Baltic Bond List.

Mustonen emphasised that the Luther Quarter is a great example of how high-quality urban environment, architecture, and sustainability come together. “With the Luther Quarter, we now have a rare opportunity to revitalise a key area in central Tallinn that has been awaiting a solution for years,” Mustonen noted. The construction is scheduled to begin next year. The development consists of 15 plots, integrating residential units, office and retail spaces, and a vibrant food street into a cohesive urban district. The development will feature 454 apartments, nearly 18,500 square metres of commercial space, an underground car park with 615 spaces, along with a park integrated within the Luther Quarter.

The total investment in the Luther Quarter is estimated at 200 million euros. The project will be constructed by Arco Vara’s subsidiary, Arco Tarc.

Ahead of its upcoming public bond issuance, Arco Vara, together with Investeerimisklubi, will host an investor event on 10 September at the Luther Quarter. The event will cover trends in the real estate market, bonds in the portfolio of retail investors, and provide insight into Arco Vara’s future plans. According to Kristina Mustonen, the investor event is a suitable place to ask questions about the upcoming bond issuance and Arco Vara’s long-term growth plans.

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