Arco Real Estate SIA, a 80% subsidiary of Arco Group, and Rīgas Pilsētbūvnieks LLC, a company belonging to Riga municipality, established a 50%/50% joint venture for residential development project. The project is in the Plavnieku district. Land plot size is 12 255 m2 and construction right 36 765 m2. Statutory capital of the company is 2,2 mLVL (mEUR 3,1). Rīgas Pilsētbūvnieks LLC contributes the necessary land in amount of 1,1 mLVL (mEUR1,55) and Arco Real Estate SIA cash in the same amount. “Co-operation with the municipality enables to move on fast and better consider the needs of the municipality and citizens of Riga”, said Arco's CFO Aare Tammemäe. 1 EUR=0,7028 LVL 1 EUR=15,6466 EEK 1 LVL= 22,1313 EEK Additional information: Heigo Metsoja Head of Investor Relations +372 6144 654 heigo.metsoja@arcovara.ee www.arcorealestate.com