Arco Vara has commenced preparations for a possible share capital increase and potential secondary offering or issue of other debt or equity instrument that would get sufficient market support. The exact structure of the contemplated capital raising has not been determined yet and the company is currently exploring different options.
The purpose of the contemplated capital raising is to support the growth of the company and expand the company’s residential development activities in growing cities of Estonia and Latvia, with estimated resource allocation in favour of at least 80% to Estonian and Latvian market, and not more than 20% for Bulgarian or new markets.
The company has several potential residential development projects in pipeline, in addition to the projects that are already acquired. As such projects in the pipeline are in the negotiations phase, disclosure of more detailed information may have adverse effect on the negotiations. Targeted return on equity for new projects is at least 20% per year.
At this preparatory stage, it is too premature to predict the exact nature, timing, volume or the price range of the capital raising transaction.
Evelin Kanter
Lawyer
Arco Vara AS
Phone: +372 614 4594
evelin.kanter@arcovara.ee