Arco Vara picks Strabag unit for first stage of residential project in Bulgaria

The Botanica Lozen Residences project will kick off in November, the Estonian company said in a press release.

The contract involves the construction of 16 two- or three-storey houses, each with an area of between 300 sq m and 430 sq m. Completion is scheduled for the spring of 2024.

"In selecting the general contractor, the price and payment terms offered were the leading factors but Strabag’s extensive experience and strong international brand gave it an advantage over its competitors," Arco Vara Bulgaria executive manager Kaloyan Radoslavov said.

The houses were designed by local architectural studio Vamos.

The Botanica Lozen Residences project received a building permit in the third quarter of 2022, but the construction start was delayed beyond the company's initial goal of the same quarter, Arco Vara said in an interim financial statement published on Thursday.

In 2020, due to the coronavirus pandemic, Arco Vara froze the project and decided to opt out of the purchase of the second property section, which was due to be finalised in December 2020. The first stage of the real estate acquisition deal, for a total area of 5.3 ha, was completed in January 2018.

Last year, the Estonian developer revised the project, which initially foresaw apartment buildings, commercial spaces and a kindergarten. It decided instead to go ahead with the construction of 54 single-family homes, with 16 houses in each of the first and second stages, and 22 houses in the third stage.

Earlier this month, Arco Vara extended a licence agreement with its Bulgarian real estate broker Arco Imoti until December 31, 2028.

($ = 1.004 euro)