ARCO VARA AS - NASDAQ OMX Baltic

GROUP STRUCTURE
Arco Vara AS, a company with limited liability incorporated under the laws of the Republic of
Estonia, is the operating parent company of the Group.
As at the date of this Offering Circular, the Company had 32 subsidiaries, 23 joint ventures (“Joint
Ventures”) and one associated company.
The Group has been organised into three principal divisions: services, development and construction.
Each of Arco Real Estate AS (“Arco Real Estate”), Arco Investeeringute AS (“Arco Investeeringud”)
and Arco Ehitus OÜ (“Arco Ehitus”), all wholly-owned direct subsidiaries of the Company, is
the parent company of its division. Most of the subsidiaries and interests in Joint Ventures in each
division are directly or indirectly owned by the respective divisional parent company.
STRATEGY
The business strategy of the Group is summarised as follows:
• Focus on large-scale residential development projects in the capitals of the Group’s target
markets
• Balance the residential development pipeline with selected commercial development projects,
which are either pre-sold or have a clear exit strategy
• Enter new target markets with real estate services operations and expand into real estate
development thereafter
• In new target markets initially focus on development projects with obtained building rights
due to lower risks and faster project completion
• Increase real estate services office network across all target markets to 46 offices by 2009
• Add construction capacity via acquisitions in Estonia and Latvia.
COMPETITIVE STRENGTHS
The competitive strengths of the Group include:
• Vertically integrated business model
• Strong track record in the Baltics combined with local market expertise
• Experience in residential development
• Major development projects in Tallinn and Riga, with future opportunities in Sofia, Bucharest,
Vilnius and Kiev
• Unique sales-driven approach to development
• Established business platforms for geographic expansion.
RISK FACTORS
Before purchasing Offer Shares, prospective investors should carefully consider the risks described in
“Risk Factors” in addition to the other information contained in this Offering Circular. The risks
described in “Risk Factors” are not the only risks that the Group and investors in the Offer Shares will
face. Additional risks not currently known to the Group or that the Group currently believes are
immaterial may also adversely affect its business, financial condition and results of operation.
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