ARCO VARA AS - NASDAQ OMX Baltic

The table below summarizes the monthly office rental rates (EUR/ m 2 ) in December 2006 across the
districts of Riga:
District Class A Class B Class C
Centre 16-26 9-18 n/a
Centre periphery 15-20 6-13 n/a
Rest of the city n/a 6-10 3-6
Source: Arco Vara, OberHaus, KOBA
Re&Solution reports that office property yields were around 7 per cent at the end of 2006.
The table below summarises the recent and pending office development in Riga:
Project Class Developer Location Area Completion EUR/m2
Ziemeļu Vārti B Ariel Baltic City centre 10,000 2006 12-15
Barona kvartāls B Ivo Zonne City centre 30,000 2006 8-10
Duntes House
RBS Skals Centre
Rietumu Capital Centre*
Krājbanka House*
B
A
A
B
Merks
RBS Skals
Rietumu Bank
Merks
CAB
City centre
City centre
City centre
7,800
9,000
3,600
6,000
2006
2Q 2007
3Q 2007
2007
18-23
19-20
20
n/a
Magnat Business Centre B Magnat Rest of town 4,000 3Q 2007 12
Alojas Business Centre
DaVinci complex
Z-Towers
Ķīpsala Business Centre
A
A
A
A
LNK
CG
SPI Group
Arco Vara
Rest of town
City centre
City centre
City centre
10,600
n/a
95,000
36,000
2008
2008
2008
2010
>18
n/a
n/a
n/a
*Developed by the respective banks primarily as corporate headquarters
Source: Arco, Koba, OberHaus, Latio
Lithuania - Vilnius
According to Statistics Lithuania, the Greater Vilnius area has a population 646,000, which represents
some 18 per cent of the total population of Lithuania. The Greater Vilnius area is comprised of the city
itself (population 553,000) and the surrounding Vilnius district (93,000). Average gross wages in the
City of Vilnius have been consistently the highest in the country, some 16 per cent above average in
the last four years, and the city generates almost one-third of the Lithuanian GDP. In 2003-2005, 49
per cent of the new residential construction in Lithuania took place in the Greater Vilnius area.
The following table summarises the development in statistics relating to the property market in
Lithuania 2003-06:
2003 2004 2005 2006
Mortgages-to-GDP ratio, % 3.4 5.6 9.0 12.6
Outstanding housing loan balance, EUR million 553 1,009 1,857 2,988
Average interest rate on new housing loans in LTL, % 5.0 4.5 4.5 4.5
Average interest rate on new housing loans in EUR, % 4.6 4.1 3.8 4.1
Average gross monthly wage in the City of Vilnius, EUR 362 385 431 n/a
Construction cost index, y-on-y change in % 1.0 6.1 7.6 9.8
Residential inventory in Greater Vilnius, ‘000 m 2 14,332 14,833 15,315 n/a
Residential construction in Greater Vilnius, ‘000 m 2 251 349 303 n/a
Source: Statistics Lithuania, Bank of Lithuania
Residential property supply and demand
Soviet-era CABs account for approximately 60 per cent of the total residential property inventory in
Vilnius. A large part of new construction tends to take place in these clusters, which combine a welldeveloped
infrastructure with a favourable location. Fewer residential units are built in the more
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