OREANDA-NEWS. Arco Vara AS' 100% subsidiary in Bulgaria Arco Manastirski EOOD concluded on 12 November, 2013 a Construction Contract for building 132 apartments and 86 underground parking places in blocks A and B of Manastirski Livadi residential complex. The Price of the Construction Contract is below 3,9 million EUR, excluding VAT. The gross sellable area of the above-grade construction is 12 500 sq. m and the gross sellable area of underground construction is 3 300 sq.m. The underground section has been previously partially completed.

The construction will begin on 15 November, 2013 and the construction period is 11 months. The Construction Contract was concluded with Komfort OOD, a company chosen from eight bidders.

In order to finance the whole development Arco Manastirski EOOD concluded a Loan Contract with UniCredit Bulbank AD for 4,4 million EUR on 11 November, 2013. The interest rate of the loan is 3-month Euribor plus 5,5%. The term of the Loan Contract is 3 years.

Arco Manastirski EOOD owns the whole land plot of Manastirski Livadi residential complex together with all the building rights that were acquired from Arco Invest EOOD in 2013 summer during restructuring. In order to repay Piraeus Bank the Manastirski loan and separate Manastirski Livadi and Madrid projects into different subsidiaries, Arco Vara AS conducted a bond issue in the amount of 750 000 EUR.

The comment of the CEO of Arco Vara AS “The goal of Arco Vara is to build 132 apartments in Sofia by spending a maximum 4,4 million EUR by November 2014, and sell them by end of 2015 for a minimum 8 million EUR and then redeem the bonds of Arco Vara AS. Our second goal is to apply in development of the block A and B all the knowhow that we have acquired from the development and sale of block C. For the coming years we still have in reserve the land under Manastirski block D, the constructed underground part and the building rights for construction of approximately 70 apartments.“

Arco Vara AS is a listed integrated real estate development, real estate exchange and investment management company that operates on the markets of Estonia, Latvia and Bulgaria.