February 6 (SeeNews) - Estonian real estate group Arco Vara said on Tuesday it has signed a deal for the acquisition of Bulgaria-registered Arco Lozen company which owns six plots of land with a total area of 5.3 ha in the outskirts of Sofia, close to Lozen village.
Arco Vara plans to use the area to develop a high-class residential project with apartment blocks, houses, and commercial units such as supermarket, kindergarten and sports facilities, the company said in a statement.
The value of the deal was not disclosed.
The group is awaiting results from ongoing design bidding, it added. Technical design will be completed in 2018, by the end of which the group also expects to obtain a construction permit for the first stage of its project.
By December 2020, Arco Vara plans to acquire an unnamed Bulgarian company, owner of nine plots of land, of which five are intended for construction and the remaining for street infrastructure, with a total area of 6.8 ha. The company will use those land plots to proceed to the next stages of its Lozen project.
"With the acquisition of Lozen development project in Sofia, and with the acquisition of Paldiski 74 land plot in Tallinn shortly before that, we have taken another important step in our long-term strategy. We have created a suitable land reserve with construction rights, which will allow us to create more than 1,000 residential units in Sofia and in Tallinn in the next five years," Arco Vara's CEO, Tarmo Sild, said in the statement.
In November, Arco Vara said it signed an agreement to acquire 100% of two Bulgarian companies, which own eight plots of land near Lozen village for an undisclosed sum. The entire development project is expected to be completed in 2024, the company said.