On 31 October, 2016, Arco Vara AS’ 100% subsidiary Arco Real Estate AS sold its 70% stake in Arco Vara group’s Latvian brokerage company (commercial name SIA Arco Real Estate) which acted under Arco Real Estate trademark. According to the concluded agreement, SIA Arco Real Estate was obliged to continue providing services under a new trademark from May 2017.
Today, Arco Vara AS and SIA Arco Real Estate concluded a 3-year franchise contract and agreed on the terms for using Arco Real Estate trade mark.
Selling a loss-making subsidiary and replacing it with a cash-generating franchise agreement is part of Arco Vara group’s broader action plan aimed at increasing the yield on the group’s assets.
Evelin Kanter
Head of Legal Department
Arco Vara AS
Tel: +372 614 4594
evelin.kanter@arcovara.ee
http://www.arcorealestate.com