Transaction with related party

Arco Ehitus (100 % subsidiary Of Arco Vara) concluded a sale contract under the
law of obligations to obtain office premices of  Odra str. 16/Jakobi str. 29 in
Tallinn on deferred terms. 
Present owner of the business premises is a company OÜ Euro Shipping belonging
to the Chairman of Supervisory board of Arco Vara. Arco Ehitus has been the key
tenant at the above mentioned address for the last five years and has paid
rent to OÜ Euro Shipping. There are other tenants in the building. The price of
the transaction is 10.2 MEEK (0.65 MEUR) of which a large part will be paid at
the end of 2011. 
An independent valuator - Pindi Kinnisvara - estimated the market value of the
asset as 10.7 MEEK (0.68 MEUR). 

Arco Vara is one of the leading real estate developer in the Baltic's,
operating also in Ukraine and Bulgaria. Core business is real estate
development supported by brokerage network, construction arm and property
management. The company has offices in 18 cities and employs 240 people. Arco
Vara is listed on Tallinn Stock Exchange. 

1 EUR=15.6466 EEK

Arco Vara AS