Changes in the Composition of the Management Board and Supervisory Board of Arco Vara AS

At its meeting held on 8 October 2026, the Supervisory Board of Arco Vara AS decided to recall Rait Riim from the Management Board and to appoint Kert Keskpaik as the new Member of the Management Board and manager of Arco Vara AS. Kert Keskpaik's authority takes effect on 8 October 2026.

Kert Keskpaik has until now served as Chairman of the Supervisory Board of Arco Vara AS. In connection with his appointment to the Management Board, his mandate as a member of the Supervisory Board will end. The Supervisory Board elected its member Tarmo Sild as the new Chairman of the Supervisory Board. Tarmo Sild represents the major shareholder Alarmo Kapital on the Supervisory Board and served as manager of Arco Vara AS from 2012 to 2020.

Kert Keskpaik has been involved in real estate development and sales for more than 20 years. He has worked as a real estate broker, renovated and sold apartments, and carried out development projects. He has been a member of the Supervisory Board of Arco Vara AS since 2015 and its Chairman since July 2025. Keskpaik holds a degree in Business Administration from Tallinn University of Technology.

The purpose of the changes is to strengthen shareholder control over the management of the company. The priorities of the Management Board are to review the business plan of the Luther Quarter, as the Supervisory Board considers that the current plan does not meet expectations regarding return on equity and the balance of risk and return, and to assess further projects in the development portfolio against the same criteria. The Kodulahe, Kuldlehe and Spordi Street projects are in their final stage.

Kert Keskpaik, Chairman of the Management Board of Arco Vara AS: "Arco Vara's future developments have the potential to deliver up to 1,000 apartments and 20,000 square metres of office space. Technical potential alone is not enough if the return on equity target is not met or if the balance of risk and return for shareholders is not right. There will be no transition period, and substantive work starts immediately. I thank Rait Riim and the Arco team for the stage we have completed."

Tarmo Sild, Chairman of the Supervisory Board of Arco Vara AS: "The current management has made significant preparations for launching the Luther project, consolidated resources and prepared financing solutions. We have no criticism of the Management Board. However, the company faces several structural challenges, the most important of which are turning the Luther Quarter into a commercially viable product and changing the team's mindset. The cost of capital, demographic changes and slow economic growth in Estonia call for a significantly different approach in the coming years."

Rait Riim will be recalled in accordance with the terms of the Management Board member's contract.

Kert Keskpaik holds 45,000 shares of Arco Vara AS as a private individual and 168,771 shares of Arco Vara AS through his related company OÜ K Vara. Tarmo Sild holds 229,000 shares of Arco Vara AS through his related company Aia Tänav OÜ. In addition, Tarmo Sild and Supervisory Board member Allar Niinepuu are members of the Management Board of OÜ Alarmo Kapital, the majority shareholder of Arco Vara AS. OÜ Alarmo Kapital holds 9,163,104 shares of Arco Vara AS, representing 52.76% of all shares.

Darja Bolshakova
CFO
Arco Vara AS
darja.bolshakova@arcovara.com