Preschool facility on Laufásvegur available for lease

We are seeking interested parties to use and lease the preschool facility at Laufásvegur 53-55, including the outdoor play area connected to the building. Hjallastefnan ehf. has operated Laufásborg Preschool for the past few years.

Reykjavík City – Real Estate Fund seeks interested parties to lease the Laufásborg Preschool facility at Laufásvegur 53-55 in 101 Reykjavík for early childhood education.

Lease price: 3,553,330 ISK. This amount is based on consumer price index 658.6.

The facility is leased in its current, "as-is" condition.

Reykjavík City's objectives for this lease are to:

• Ensure continued preschool spots in Reykjavík for children ages 12 months to six years.
• Ensure a preschool continues to operate on Laufásvegur that meets the requirements of preschool laws and Reykjavík City regulations for preschool operating permits.
• Expand parents' options for early childhood education that supports their educational priorities.
• All activities in the building must be appropriate for a preschool facility. This must be fully reflected in furnishings, technical equipment, operations, and general use.

Evaluation of bids:

Applications will be evaluated based on the following factors:

• The planned early childhood education program and its alignment with Reykjavík City's goals for the lease.
• The applicant's experience in early childhood education.
• The lease amount and ability to operate a preschool.

Applicants seeking to lease the building must be current on all public taxes and pension fund payments and cannot have outstanding debts to Reykjavík City.

A special evaluation committee from Reykjavík City will review applications.

Reykjavík City reserves the right to accept the most favorable bid as determined by the evaluation committee or to reject all bids.

The tenant is required to begin preschool operations in the building as soon as possible.

Bids will be evaluated based on the following criteria:

Contract period:

A new lease agreement is expected to start as soon as possible and will be valid for five years, with a potential extension of up to three additional years, subject to mutual agreement by both parties.

Contracting parties may terminate the agreement with one year's notice, but no earlier than 12 months after operations begin at the preschool.

Further information:

Inquiries can be directed to the Department of Education & Youth of Reykjavík City at sfs@reykjavik.is

Application attachments:

The following documents must be submitted with the application:

1. Confirmation from the Director of Customs that the applicant is current on all public taxes.
2. Confirmation from the relevant pension funds that the applicant is current on pension fund payments.
3. A report describing the planned early childhood education program and experience in the field.
4. The tenant must demonstrate experience operating a preschool and provide a budget for the next two years.
5. School curriculum that includes the preschool's educational framework, program goals, and implementation strategies.

Submission of applications

Applications must be submitted in a sealed envelope marked "Leikskólahúsnæði – Laufásvegur 53-55" to the Reykjavík City Service Center, Borgartún 12-14, no later than 12 noon on Thursday, October 9, 2025.

The facility:

Facility at Laufásvegur 53-55, 101 Reykjavík. The property is registered at 922 square meters. Reykjavík's Real Estate Fund owns 100% of the property.

The facility has been used for preschool operations since 2008 and has an outdoor play area on the grounds.

Obligations:

The operator/tenant must comply with all instructions from Reykjavík City, including the Department of Education & Youth and the Department of Environment & Planning, regarding the use of the building and grounds. The following restrictions apply to the building:

1. Smoking is prohibited in the building.
2. Construction and alterations, such as painting, are prohibited without prior approval from Reykjavík City's Department of Environment & Planning.
3. All requirements from The Administration of Occupational Safety and Health, the public health authority, and the Capital Area Fire Department must be met.

Tenants are prohibited from subletting the facility.

Lease terms:

Rent is paid in advance, due on the 1st of each month. No value-added tax applies to the lease. If the due date falls on a holiday, payment is due the next business day. Rent must be paid according to payment slips issued by Reykjavík City and is subject to late payment interest rules. The rent is indexed to the consumer price index and will be adjusted monthly to reflect any changes.

Landlord's contribution:

The facility includes various equipment, both movable and fixed. A detailed list is available upon request.

Operator's contribution:

The operator provides any equipment not already present in the building. The operator may provide additional furniture, tableware, linens, etc., but furniture selection must be approved by the landlord/lessor. The operator is responsible for the maintenance costs of any landlord-provided equipment designated for their exclusive use.

Operating costs:

The tenant bears the following operating costs for the leased facility:

1. Water, electricity, heating, and rental fees to utility companies for meters and similar equipment.
2. Cleaning, facility management, building maintenance, and garbage collection.
3. Maintenance for:

• Security system.
• Computer system.
• Maintenance of fire safety equipment and telecommunications and reception equipment.

The tenant must also comply with all laws and regulations governing preschool operations, as well as any other applicable laws related to their operations.

Breaches:

The tenant must fulfill all contractual obligations and follow Reykjavík City rules for preschool operating permits. The lessor may therefore terminate the agreement if the tenant fails to provide preschool services in accordance with the relevant contracts. To exercise this right of termination, the lessor must first issue a written notice granting the tenant a reasonable period to remedy the breach. If the tenant fails to meet the lessor's requirements within that timeframe, the lessor may declare termination without further notice.

If the tenant seeks debt restructuring, a payment moratorium, or is declared bankrupt, or if asset seizure attempts against the tenant fail, the lessor may terminate the agreement without further notice or justification.

Any legal disputes arising from this lease agreement will be heard by the District Court of Reykjavík.

In all other matters not specified above, the legal provisions governing remedies for breach of contract shall apply.

Other:

Drawings of Laufásvegur 53-55 are available on Reykjavík City's online building plan database.