Financing agreement

SIA Bišumuisas Nami, where Arco Investeeringute AS has a 40% shareholding,
closed a financing deal in amount of mEUR 29,0 with Nordea Bank Finland Plc
Latvian branch. 
 
14,0 million euros is disbursed immediately in order to finance the payment for
Sportings Riga SIA shareholding. The remaining mEUR 15,0 is used for financing
the construction of 1st phase of "BM-2" project. "BM-2" is a complete
residential environment development project in Riga on 111 596 m2 of land and
the company plans to construct there 1085 appartments. 
 
SIA Bišumuisas nami is a 100% shareholder of Sportings Riga SIA. The sole asset
of Sportings Riga SIA is a land related to "BM-2" project. 
 
Interest rate is 1m EURIBOR+1,3% with a bullet schedule up to 05.01.2010,
including prolongation option up to 05.01.2015. 
 
 
Additional information:
Heigo Metsoja
Head of Investor Relations
+372 6144 654
heigo.metsoja@arcovara.ee
www.arcorealestate.com