Arco Vara AS Initiates Exit Process from the Bulgarian Market to Refocus on Estonian Development Projects

After nearly twenty years of successful business activity in the Bulgarian real estate market, the Management Board of Arco Vara AS has initiated a strategic exit process, with the ultimate goal of a complete withdrawal from the Bulgarian market. The decision was confirmed by the company’s Supervisory Board in July 2025, following a thorough evaluation of Arco Vara’s long-term strategy and the current and future development opportunities across different markets.

The management has already launched the sale process, and several local Bulgarian real estate developers have expressed interest in participating in the transaction. Potential buyers will have the opportunity to conduct thorough due diligence and submit their offers to acquire Arco Vara’s Bulgarian operations.

According to Kristina Mustonen, Member of the Management Board of Arco Vara, this is a well-considered and forward-looking decision.

“Exiting Bulgaria allows us to focus even more clearly on our core market – Estonia. Our major project in the Luther Quarter, one of the most attractive development areas in Tallinn, requires strong leadership, focused attention, and financing capacity. By freeing up resources from Bulgaria, we will be better positioned to realise the growth potential of our Estonian projects and strengthen our position in the domestic market,” commented Mustonen.

“This decision was not made lightly – we have achieved significant results in Bulgaria, built a strong team, and delivered high-quality developments we can be proud of. However, from the perspective of Arco Vara’s long-term growth and shareholder value, it is strategically justified to concentrate our focus on Estonia, where the potential of our projects is greater today than ever before,” explained Kert Keskpaik, Chairman of the Supervisory Board of Arco Vara AS.

The company will keep shareholders and the public informed about the progress of the exit process and will provide further updates as transactions or other material developments reach the next stage.

Darja Bolshakova

CFO

Arco Vara AS