Arco Varal released more than €4 million from the sale of a commercial building

Friday, 30. On 1 June, the sale of a commercial building in Sofia, the Bulgarian capital, by residential property developer Arco Vara entered into force. Once the commitments have been met, Arco Vara will receive €4 million, which it will use to develop new residential quarters.

Madrid BLVD, a commercial and residential building developed by Arco Vara, was completed in 2010. in. With two underground floors and 9 above-ground floors, the building will house a car park, apartments, a shopping centre and offices. All the apartments in the building have been sold, but Arco Vara has so far been renting commercial and office space, totalling around 7,500 m².

According to Miko Niinemäe, CEO of Arco Vara, owning and managing a commercial building is no longer compatible with the company’s plans. “Arco Vara’s strategy for the coming years is to develop high-quality residential real estate. Retail space requires a separate team, and the overheads of operating just one building are quite high,” he explains.

Madrid BLVD in central Sofia was priced at €9.1 million. The buyers are three Bulgarian companies investing in commercial real estate. As a result of the transaction, Arco Vara will have €4 million.

“The sale price was in line with expectations,” Niinemäe said, adding that Arco Vara received a small part of the sale price after the preliminary agreement was signed and the rest now after the sale was completed. Arco Vara intends to invest the proceeds of the transaction in the next phases of Kodulahe and the development of the Arcojärve residential area planned for the shores of Lake Harku.

In Bulgaria, Arco Vara continues its residential real estate activities, with the first phase of construction underway in the Botanica Lozen private residential quarter near Sofia. “The plan is to build 16 houses each in phases I and II, and 22 in phase III,” Niinemäe added. In total, Botanica Lozen can accommodate 54 large private houses, which also include a garden.