Arco Vara AS has previously communicated (see Q4 interim report from February 16, 2017) that it aims to commence construction of Sofia Iztok Parkside development project in Q1 2017 and sell it out by Q1 2018.
The construction is not yet commenced due to delay in obtaining the construction permit from Sofia municipality. The project will be developed simultaneously with construction of a new access street that will be built onto state-owned landplots.
According to Sofia municipality, the respective Bulgarian state institutions that own the land underneath the future access street and the municipality itself must complete the process of either municipalization of those landplots or registering a street servitude, before the construction permit can be issued. Construction of the new access street is foreseen in the detail plan that has entered into force.
The project financing agreement with a bank stays in force and the best offer in construction tender has been chosen. The company cooperates with the municipality to facilitate the land municipalization or servitude process.
Iztok Parkside project comprises 68 apartments with gross sellable area of 7000 sqm and expected sale revenue in excess of 8 million euros.
Evelin Kanter
Head of Legal Department
Arco Vara AS
Tel: +372 614 4594
evelin.kanter@arcovara.ee