OREANDA-NEWS. Arco Vara AS (hereafter also 'the parent company' or 'the Company') and other entities of Arco Vara group (hereafter together 'the group') are engaged in real estate development and services related to real estate. Until the end of year 2013, the group's three business lines - services, development and construction had been organised into corresponding divisions. Since year 2014, the group has two continuing business lines: Service division and Development division. The group has no plans on independent construction activities in next few years.

The Service division is engaged in real estate brokerage, valuation, management and consulting as well as in short-term investment in residential real estate. The Service division offers to the group additional value by generating analytical data on market demand and supply, also behaviour of potential clients. Analytical data allows to make better decisions on purchase of land plots, planning and designing, also on timing the start of construction.

The Development division develops complete living environments and commercial real estate. Fully developed housing solutions are sold to the end-consumer. In some cases the group is developing also commercial properties until they start generating cash flow for two possible purposes: for the support of the groups' cash flows or for resale. The group is currently holding completed commercial properties that generate rental income.

The Construction division provided general construction and environmental engineering services, operating as a general contractor and construction manager as well as a subcontractor. In 2013, the provision of construction services was finished and in February 2014, the group sold its construction company Arco Ehitus OU. Arco Vara is still responsible for completing possible warranty works, together with Arco Ehitus. The last warranty period will end in October 2015.

At 30 September 2014, the group comprises of 22 companies (31 December 2013: 23). At 31 December 2013, the group had interests also in one joint venture and one associate. In Q3 2014, was sold 40% ownership in associate Arco Property Management SIA and was acuired all shares of joint venture Tivoli Arendus OU, after which Tivoli Arendus OU became a subsidiary of the group.

The group regards Estonia, Latvia and Bulgaria as its home markets.