ARCO VARA AS - NASDAQ OMX Baltic

The chart below summaries the key elements of each office and retail development residential project
discussed above:
OFFICE AND RETAIL DEVELOPMENT PROJECTS
Ahtri 3 Ilmarine Laeva Paldiski road Kipsala
Expected development period 2008-2011 2008-2011 2008-2009 2009-2011 2008-2011
Expected future investment,
EEK mln
927 1,302 166 461 1,101
Land area, m2 13,911 39,503 2,698 8,200 53,038
Gross construction volume, m2 48,400 80,000 7,800 28,800 50,000
Net area, m2 36,300 60,000 6,006 21,600 36,000
Expected annual rental NOI,
EEK mln
Consolidated project book value
as at 31/12 2006, EEK mln
Group legal ownership as at
01/06/2007, %
112 130 25 48
98
Not
applicable
385.0 150.8 41.7 34.6 57.4
50% 50% 100% 100% 50% 3)
Project total book value as at
31/12/2006, EEK mln 1)
385.0 301.5 41.8 34.6 114.8
Colliers appraised value, at
16/04 2007, EEK mln 2)
698.6 811.3 112.6 218.8 95.7
Project Status Planning Planning Planning 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) 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 Kipsala project. See – “Business - Material Contracts -
Acquisition of shareholdings in subsidiaries and joint ventures.”
Cash flow generating properties
The following nine properties are the Group’s material cash-flow generating properties.
TOP office property in Tallinn, Estonia
The TOP office property is located at the coast in the Pirita suburb, Tallinn, approximately six
kilometres from the city centre. The Pirita TOP complex was originally built for the yachting event of
the 1980 Moscow Olympic Games, held in Tallinn and is considered a landmark building.
The complex is protected as an object of architectural heritage. The complex comprises several
buildings and currently serves mainly as offices. Pirita TOP is the only yachting marina in the city of
Tallinn and accordingly valued by the local sailing community. The atmosphere in the complex is
somewhat nostalgic and in little use outside the summer sailing season. The Pirita TOP complex also
includes a spa owned by the Explorer Property Fund - Baltic States.