ARCO VARA AS - NASDAQ OMX Baltic

Project
Consolidated
project book
value as at
31/12/2006,
EEK m
Group
legal
ownership
as at
01/06/2007
%
Project
total book
value as at
31/12/2006,
EEK m 1)
10
Appraised
value by
Colliers at
16/04/2007,
EEK m 2)
Expected
number of
apartments /
land units
developed
Estimated
sellable /
leasable
space, m 2
Estimated
development
period
Baltezers 31.1 80 31.1 69.7 - / 53 - 2007-2008
Bišumuiža 2 14.0 80 5) 14.0 341.8 1,085 / - 81,826 2007-2014
Office and retail development projects
Ahtri 3 385.0 50 385.0 698.6 n.a. 36,300 2008-2011
Ilmarine 150.8 50 301.5 811.3 n.a. 60,000 2008-2011
Laeva 41.7 100 41.8 112.6 n.a. 6,006 2008-2009
Paldiski road 34.6 100 34.6 218.8 n.a. 21,600 2009-2011
Kipsala 57.4 50 6) 114.8 95.7 n.a. 36,000 2008-2011
Cash flow generating properties
TOP 116.4 50 232.8 267.9 n.a. 23,292 n.a.
Melon 75.0 50 150.0 187.8 n.a. 7,567 n.a.
Kerberon
AVSK
72.4 83 72.4 78.6 n.a. 8,111 n.a.
Raekoja 10 10.7 50 21.4 39.7 n.a. 1,493 n.a.
Rüütli 16/18 18.5 50 37.0 37.2 n.a. 1,030 n.a.
Kotzebue 18 1.6 50 3.2 4.0 n.a. 415 n.a.
Pärnu market 30.0 100 30.0 40.2 n.a. 2,529 n.a.
STÜ 29.9 100 29.9 26.6 n.a. 1,692 n.a.
Enerpoint 12.7 100 12.7 13.3 n.a. 2,208 n.a.
TOTAL 1,642.8 2,218.6 4,422.7
1)
Consolidated project book value adjusted with the assumption of 100 per cent being owned by the Group on 31 December
2006.
2) The Appraisal Report was prepared by Colliers International separately from the preparation of the Group’s IFRS Financial
Statements. In producing the Appraisal Report, Colliers International used certain assumptions, techniques and
methodologies specified in the Appraisal Report, which may differ from the assumptions used by the Group when preparing
its IFRS Financial Statements. Therefore, the values indicated in the Appraisal Report differ from the values for the same
properties used in Group’s IFRS Financial Statements. Whereas the values indicated by Colliers International aim to reflect
market prices of the properties as at the valuation date, those real estate projects that are classified in accordance with IFRS
as Inventories or Construction In Progress are carried at their acquisition cost in the balance sheet of the Company. Only
those properties that are classified as Investment Property are carried in the balance sheet of the Company in their fair value.
The fair values of investment properties in the interim condensed consolidated financial statements of the Company for the
three-month period ended 31 March 2007 have not been based on the Appraisal Report. This is due to the requirement of
IFRS that future capital expenditure and the related future benefits from such expenditure are not to be reflected in the fair
value of Investment Property.
3) The project encompasses three land plots, one owned by OÜ Koduküla and two other owned by individuals who have
entered into agreements for selling these land plots to OÜ Koduküla.
4) The land plot is owned by a private individual who has entered into an agreement for selling this plot to OÜ Koduküla, a
50-50 per cent joint venture with VWF Kinnisvara OÜ.
5) The land plot is owned by SIA Sportings Riga, the wholly-owned subsidiary of SIA Bišumuižas Nami. As at the date of
the Offering Circular, Arco Investeeringud owns 80 per cent and Mr. Viktors Savins owns 20 per cent of the shares of SIA
Bišumuižas Nami. On 18 May 2007, Arco Investeeringud and Mr. Viktors Savins entered into a conditional Share Purchase
Agreement with SIA Linstow Baltic regarding the sale of 50 per cent of the shares of SIA Bišumuižas Nami. Following the
closing Arco Investeeringud will own 40 per cent of the shares in SIA Bišumuižas Nami, with Mr. Viktors Savins owning 10
per cent and SIA Linstow Baltic owning 50 per cent. See - “Management’s Discussion and Analysis of the Group’s Financial
Condition and Results of Operations – Recent Developments”.
6) OÜ Floriston Grupp, a joint venture with AS Ärimaja, has made an advanced payment for the acquisition of 100 per cent of
the shares of SIA “Euroline”, the company holding the property for the Kipsala project. See – “Business - Material Contracts
- Acquisition of shareholdings in subsidiaries and joint ventures.”