Arco Vara: Arco REIT share capital increase did not succeed

In the second quarter of 2016, after listing of its shares on Sofia Stock Exchange, Arco Real Estate Fund REIT undertook effort to increase its share capital by at least 5 million EUR.

During the presubscription trading period retail investors acquired 2,760,000 BGN (ca 1,415,000 EUR) worth subscription rights.

Since Arco REIT had itself set to the share capital increase a minimum threshold of 5 million EUR, and that threshold had not been met, then the fund manager decided not to proceed with the share capital increase process.

Arco Vara AS' CEO Tarmo Sild's comment:

"We are disappointed with the results. On a more positive note, we are glad that there are retail investors who showed their interest towards Arco managed residential projects in Bulgaria. Hopefully we will find a way to do business with them. And, we also gave ourselves a promise never to raise capital again during or immediately after the Brexit vote."

Evelin Kanter Head of Legal Department Arco Vara AS Tel: [phone] [e-mail] http://www.arcorealestate.com