Arco Invest Seals 8.1m Euro Deal For Apartments In Madrid Project

Arco Invest Ltd, a subsidiary of Tallinn Stock Exchange-listed Arco Vara group, has closed a deal worth 8.1 million euro with Cleves Ltd for the sale of 45 unfinished apartments and 60 parking spaces in its Madrid project, the company said on its website on March 10.

Arco will receive a 30 per cent down payment within 10 days and the remaining 70 per cent are due on receiving the habitation certificate.

The buyer, English company Cleves Ltd, deals in luxury rentals and has announced plans to acquire a portfolio of about 200 high-profile apartments in prime locations in Sofia, earmarking 40 million euro to that end.

The company has so far invested 33 million euro in more than 150 residential units, including in the Embassy Suites on Bulgaria boulevard, as well as the Este Home and Spa complex in Iztok neighbourhood. If Cleves sticks to its initial plans, then its purchase in Arco’s project, to be located on Sofia’s Madrid boulevard, is likely to be the last of its acquisitions.

Arco Invest acquired the Madrid project with all required permits on August 2 2007 and declared its intention to invest 20 million euro in a mixed residential-commercial complex with a total built-up area of 24 700 sq m, featuring a 164-car underground parking and 112 apartments. Completion is due in the autumn of 2009.

Arco Invest has so far concluded two contracts with Glavbolgarstroy-Sofia Jsc for the construction of the two phases of the Madrid project – the first one is worth 5.3 million euro and the second is 3.1 million euro.

Sales for the project is handled by Arco's service division in Bulgaria. After the deal with Cleves, the number of apartments sold in the building reached 50 per cent of the whole project.

Sales for the project is handled by Arco's service division in Bulgaria. After the deal with Cleves, the number of apartments sold in the building reached 50 per cent of the whole project.