Iceland Review
Summary
In a meeting held yesterday, Reykjavík City Council greenlit the finance and risk management division – also known as the property office – to initiate the sale of the iconic Perlan and two adjacent water tanks in Öskjuhlíð. The properties boast a combined real estate value nearing ISK 4 billion ($30 million / €28 million).
Perlan was constructed by Hitaveita Reykjavíkur, the city’s district heating company (which later merged with Rafmagnsveita Reykjavíkur to form Reykjavík Energy). The landmark building, inaugurated in 1991, was acquired by the City of Reykjavík in 2013, along with two water tanks from Reykjavík Energy.
At the time of acquisition, Perlan was a financial drain, generating revenue barely covering its real estate taxes and land rent. However, the past decade has witnessed a remarkable operational turnaround, according to the press release, with revenue now significantly exceeding costs. The property is currently leased to Perla norðurins ehf., which has transformed it into a popular Reykjavík tourist attraction.
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