OREANDA-NEWS. Arco Vara AS and other entities of Arco Vara group (together referred to as ‘the group’) are involved in real estate development and provision of real estate services. The group has three business lines and its operations are carried out by three divisions - Service, Development and Construction.

The core business of the Service division consists of real estate brokerage and valuation, real estate management and consulting, and short-term investment in residential real estate.

The core business of the Development division is development of complete living environments and commercial real estate. Fully developed housing solutions are sold to the end-consumer. In the development of commercial real estate, the purpose is to create an asset generating cash flow that can either be held for consolidating the group’s own cash flows or sold. The group is currently holding some completed commercial properties that generate rental income.

The core business of the Construction division was provision of general construction and environmental engineering services as a general contractor or a subcontractor. We are planning to discontinue provision of construction services to external customers by the end of 2013 and do not intend to start any new projects funded by the public sector or the EU.

The performance of all divisions is subject to seasonal fluctuations. The transaction volumes of the Service division usually increase in autumn and spring and the Construction division’s turnover and the Development division’s investment volumes decline in winter.

At the end of the IV quarter of 2013, the group comprised of 23 companies (31 December 2012: 23). In addition, at 31 December 2013 the group had one joint venture (31 December 2012: 2) and one associate (31 December 2012: 1).

The group’s active markets are Estonia, Latvia and Bulgaria.