The construction of the last residential house of the phase I of the Bišumuiža development project in Latvia

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| Source: Arco Vara
multilang-release

On the 16th January Arco Development SIA the Latvian subsidiary of Arco Real Estate AS which is the 100% subsidiary of Arco Vara AS concluded a Construction Contract for building the last residential house of the Bišumuiža development project’s phase I. The building will be completed in June 2014. The capacity of the Construction Contract without VAT is 392 thousand euros.

According to the Construction Contract 14 apartments with the gross sellable area of 960 sq. m are to be constructed. The total capacity of phase I of the Bišumuiža development project is 9 residential houses with 126 apartments (total capacity over 10 000 sq. m).

The comment of the manager of Arco Vara AS “In February 2013 we began the construction of the 14 apartments of the last but one residential house of the phase I of the Bišumuiža development project. The sale process of the previously mentioned has progressed in a good tempo taking into account the oversupply of the middle class apartments and the portfolio of the banks’ real estate loans that have gone bad. Our project does not have any bank loans left and our product has been developed, since the very beginning, taking into account the needs of the buyers. We now begin the construction of the last 14 apartments without external financing. Depending on the changes of the market situation of Riga, mainly in relation to the sell-out of the apartment portfolio of the Latvian banks’, the expected free cash flow from the project is reasonably positive“.

 

         Marko Err
         
         CFO
         Arco Vara AS
         Tel: +372 614 4503
         marko.err@arcovara.ee
         http://www.arcorealestate.com