Business
Arco Vara Acquires Luther Quarter Properties
Arco Vara AS subsidiaries Arco L Factory OÜ, Arco L Torn OÜ, Arco L Torn II OÜ, and Grupi Halduse OÜ have acquired full ownership of the Luther Quarter. The quarter consists of 15 properties and is located in central Tallinn, between Pärnu Road, Tatari, Vana-Lõuna, and Vineeri streets. A detailed plan is in place for the area, allowing for a gross building volume of 95,000 m², including 18,500 m² of commercial space and 33,000 m² of net residential area. Most of the volume indicated in the plan
About this update from Arco Vara As
[{"type":"image","alt":"Arco Vara","displaySize":"","headline":null,"caption":"Arco Vara","className":"","disableSlideshowImg":false,"size":{"original":{"width":300,"height":82,"url":"https://media.zenfs.com/en/globenewswire.com/8d9cf07dfd64e893e2e11ca988a4e232"},"resized":{"url":"https://s.yimg.com/ny/api/res/1.2/rlTGNBPdVrwZhxwSLGrpFQ--/YXBwaWQ9aGlnaGxhbmRlcjt3PTQyMDtoPTExNTtjZj13ZWJw/https://media.zenfs.com/en/globenewswire.com/8d9cf07dfd64e893e2e11ca988a4e232","width":300,"height":82}},"lazy":false},{"type":"text","content":"Arco Vara AS subsidiaries Arco L Factory OÜ, Arco L Torn OÜ, Arco L Torn II OÜ, and Grupi Halduse OÜ have acquired full ownership of the Luther Quarter. The quarter consists of 15 properties and is located in central Tallinn, between Pärnu Road, Tatari, Vana-Lõuna, and Vineeri streets. A detailed plan is in place for the area, allowing for a gross building volume of 95,000 m², including 18,500 m² of commercial space and 33,000 m² of net residential area. Most of the volume indicated in the plan is already covered by valid building permits.","length":545,"tagName":"p"},{"type":"text","content":"The acquisition price of the Luther Quarter is €35 million. The total estimated investment for the project is €205 million.","length":123,"tagName":"p"},{"type":"text","content":"Over the next eight years, Arco Vara will develop the former industrial area into a modern mixed-use urban quarter with commercial space, residential properties, and public areas. The planned contractor for the construction works is Arco Tarc OÜ. Construction is scheduled to begin in 2026, and the project will be carried out in phases. The presale of the first phase, which includes the development of four buildings, is also planned for 2026.","length":445,"tagName":"p"},{"type":"text","content":"As a result of the financing structure of the deal, the purchase price will be paid to the sellers of the quarter in Arco Vara AS shares, cash, and through the modified assumption of loan obligations with AS LHV Pank by Arco Vara.","length":230,"tagName":"p"},{"type":"text","content":"To finance the development of the Luther Quarter, an additional €17.5 million in investment is required. Therefore, Arco Vara AS has decided to carry out a share capital increase through a directed share issue. The issue is directed at Alarmo Kapital OÜ and, as new investors, the previous owner...