ARCO VARA AS - NASDAQ OMX Baltic

RESIDENTIAL DEVELOPMENT PROJECTS
Tivoli TOP Kolde Pärtli Tooma Vahi Bišumuiža 1 Baltezers 5 Bišumuiža 2
Expected development period 2008-2011 2008-2011 2005-2009 2007-2008 2007-2008 2007 2006-2009 2007-2008 2007-2014
Expected future investment, EEK, mln 1,006 608 390 38 74 9 364 24 1,674
Expected number of apartments 732 360 372 - - - 238 - 1,085
Expected number of land units - - - 93 101 21 - 53 -
Land area, m2 48,698 46,200 3) 39,565 200,000 281,000 83,480 36,419 118,400 111,596
Gross construction volume, m2 60,000 34,725 31,467 N.a. N.a. N.a. 22,273 N.a. 95,970
Estimated sellable floor, m2 46,872 27,086 22,168 - - - 18,652 - 81,826
Consolidated project book value as at 31/12/2006, EEK m 300.0 137.2 81.3 4.2 4.0 2.9 31.4 31.1 14.0
Group legal ownership as at 01/06/2007, % 100% 50% 89% 50% 4) 50% 5) 100% 80% 6) 80% 80% 7)
Project total book value as at 31/12/2006, EEK m 1) 300.0 274.4 81.3 8.4 8.0 2.9 31.4 31.1 14.0
Appraised value by Colliers at 16/04/2007, EEK m 2) 712.2 359.5 145.6 55.7 32.0 26.1 47.8 69.7 341.8
Project status Planning Planning Construction Planning Planning Planning Construction Planning Planning
1)
Consolidated project book value is 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) 2 2
46,200 m of the total land plot of 154,563 m (entire TOP property) is proposed to be used for residential development.
4)
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.
5)
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 Ärimaja AS.
6)
The real estate unit is leased from the Riga City Council.
7)
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”.
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