February 28 (SeeNews) - Estonian real estate group Arco Vara said it has sold its 100% stake in Sofia-based real estate investment trust (REIT) Arco Real Estate Fund [BUL:28R] for 333,000 euro ($406,900).
"As the group succeeded to raise money for Bulgarian developments through Arco Vara AS’ share issue in January 2018 and there was no clear purpose for Arco REIT in the foreseeable future, the management decided to sell the subsidiary," Arco Vara said in a statement on Tuesday.
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Arco Vara did not disclose the name of the buyer.
The transaction does not have a significant effect on Arco Vara AS' operations and financial indicators, the Estonian company said.
In January, Arco Vara AS increased its capital to 6.3 million euro through the issuance of 2.49 million shares.
On January 30, Arco Vara AS acquired 100% of Sofia-based Arco Lozen, which owns six plots of land on the outskirts of Sofia. The group said at the time it planned to develop a residential project on the land.
Arco Real Estate Fund, which is listed on the Bulgarian Stock Exchange, was established in 2015 with the purpose to raise capital for Arco Vara group’s Bulgarian developments.
Arco Real Estate Fund has a registered capital of 650,000 levs, spread in 650,000 shares, according to the Bulgarian commercial register.
Arco Real Estate Fund shares last traded on the Bulgarian Stock Exchange on Friday, when 650,000 shares changed hands in two transactions. One of the transactions, for 480,000 shares, was concluded at a price of 1 lev per share, while the deal for the remaining 170,000 shares was priced at 1.1 levs per share.
($ = 0.8184 euro)