The sales process arrangement for Perlan was approved by the City Executive Council today.
Authorization was granted this fall to begin the sales process for Reykjavík City's property, Perlan, along with two water tanks at Varmahlíð 1 in Öskjuhlíð. The sales arrangement was approved at today's City Executive Council meeting, with the sales process planned in two phases. The first phase will advertise for interested buyers, and in the second phase, those who meet the requirements set in phase one will be invited to submit purchase offers. The advertised minimum price will be 3.5 billion króna, and interested buyers' documentation must include information about their planned intentions for the property. The advertisement is expected to run in June.
The following restrictions will be legally registered on the property:
-Restriction ensuring Reykjavík City has right of first refusal.
-Obligation that the premises, parking, and lot be open to the public free of charge or for a modest fee.
-Restriction allowing primary school children in Reykjavík schools to visit the museum operated in the building free of charge twice during their schooling from first through tenth grade.
Veitur Utilities highlights maintenance and limitations
Veitur Utilities submitted an official statement regarding the sale of the heating utility tanks. They hold the monopoly on hot water distribution in the capital area, and the tanks at Perlan are used to balance fluctuations and distribute water from low-temperature areas within Reykjavík to service users. The official statement notes that other tanks adjacent to those being sold contain hot water, which somewhat limits the construction and activities that can take place. Attention is also drawn to accumulated maintenance needs and the prospective buyer's significant obligation to assess the condition and maintain the exterior shell and structural framework of their tanks.
Complete turnaround in the building's operations
Reykjavík Heating built Perlan, and it opened in 1991. Reykjavík City bought Perlan in 2013 and later purchased two water tanks from Reykjavík Energy. At that time, the building's operations were not self-sustaining, but a complete turnaround has happened and revenues now easily cover costs. The properties offer increased opportunities and possibilities for continued development that Reykjavík City may not necessarily be best positioned to handle. The building and tanks total about 5,800 square meters.
The matter goes to City Council for final approval.
Letter from the Department of Finance & Risk Management.
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