World News: 10:21 GMT Friday 12th October 2018. [Arco Vara via Globe Newswire via SPi World News]
The Supervisory Board of Arco Vara AS decided to extend the term of office of Tarmo Sild, member of the Management Board of Arco Vara AS, by three years, i.e. until 15 October, 2021. Arco Vara AS will continue with one-member Management Board.
There will be no new stock options connected to Tarmo Sild’s extended term of office, instead there will be a profit-related bonus system.
Tarmo Sild: “The Management Board is tasked to increase the profitability of Arco Vara Group during the next three year period. We have to accomplish several things for that. First, we must complete and sell out all development projects that are currently under construction, in total 135 units, with total expected revenue of ca 20 million EUR. The land bank we have created in Estonian and Bulgaria would allow us to construct and sell additionally ca 900 units of apartments, row and single houses, but we will commence their construction in 2019, 2020 and 2021 according to prevailing market conditions at the time. Second, we must refinance the existing Madrid Blvd building bank loan under much more favourable conditions, keep the occupancy rate close to 100% and start to earn a stable rental income with commercial and office premises. Third, the real estate brokerage and appraisal services, provided under our trademark, have to become profitable for the group. And fourth, we must reduce the group’s overhead cost. Without any attempt to predict the future, we have to be prepared also for a sharp decrease in financing, construction and sale of new real estate developments on our home markets. Arco Vara must remain profitable even during the ice age”.
Evelin Kanter Head of Legal Department Arco Vara AS Tel: +372 614 4594
Globe Newswire: 10:21 GMT Friday 12th October 2018
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