Arco Vara exits Bulgaria with €6.3M sale of Botanica Lozen stake
What's the deal? Estonia's Arco Vara ASDealroom has a profile for this one. Try Dealroom → has signed a preliminary agreement to sell its 75% stake in Bulgarian real estate developer Botanica Lozen EOODDealroom has a profile for this one. Try Dealroom → for €6.3 million. The buyer is Kamaleo Invest OODDealroom has a profile for this one. Try Dealroom →, which already holds the remaining 25%. Once complete, Kamaleo will own 100% of the company.
How it's structured: The transaction is a management buyout. Christian Petrov, representing Kamaleo Invest, has served as general manager of Botanica Lozen since October 27, 2025.
The terms: Payment comes in three parts — a €1.27 million non-refundable deposit within seven business days of signing, €1 million by October 31, 2026, and €4.03 million on completion. The first two payments will be financed through a loan from Botanica Lozen to the buyer. The deadline for completion is February 26, 2027.
What else is included? Arco Vara will also dispose of five non-operating companies left over from earlier Bulgarian projects: Arco RiversideDealroom has a profile for this one. Try Dealroom →, Arco ManastirskiDealroom has a profile for this one. Try Dealroom →, Arco Vara BulgariaDealroom has a profile for this one. Try Dealroom →, Arco InvestDealroom has a profile for this one. Try Dealroom →, and Iztok Parkside EOODDealroom has a profile for this one. Try Dealroom →. It says these have no material impact on the group's assets, results, or cash flows.
Why now? The deal marks Arco Vara's full exit from real estate development in Bulgaria. After completion, the group will hold no subsidiaries developing property there, ending its direct business and financial risks in that market.
What's the endgame? Capital freed by the sale will fund Arco Vara's Estonian projects, including the Luther Quarter and Arcojärve developments.
The numbers behind it: Botanica Lozen's equity is roughly €8.7 million, so the €6.3 million price sits close to the equity value tied to Arco Vara's stake. As a result, the company does not expect a material impact on group profit.
A related-party note: Because Kamaleo already owns 25% of Botanica Lozen, the transaction is a related-party deal. Arco Vara says it does not qualify as material under Nasdaq Tallinn rules, and that board members have no personal interest in it.
The signal: Arco Vara originally bought the predecessor company, Arco Lozen, for €2.939 million in 2018 — essentially a land purchase with development potential. The 75% exit closes a chapter of cross-border expansion and refocuses the group squarely on its home market.
Read more: centralcharts.com
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