Today, the Board of Directors at the Housing Financing Fund (HFF) decided to establish a residential real estate rental company from a part of the real estate owned by the HFF. The rental company will assume ownership and operation of 524 properties owned by HFF throughout Iceland, as of January 1st 2013. The majority of these properties are already occupied by tenants.
The newly established rental company has been named Leigufélagid Klettur Ltd and it will initially be a wholly-owned subsidiary of the HFF. The rental company will be run independently with its own board of directors. Existing rental contracts will be transferred to the rental company without any interruption for the tenants. HFF´s Asset Management division will manage daily operations for the rental company Klettur ltd. until the new company is fully operational.
Following the establishment of the rental company, the HFF still has approximately 1,700 properties of which close to 400 are in rental operation, and the tenants are not affected by this change.
HFF’s objectives in the establishing the rental company
HFF has two goals when establishing the rental company. On one hand it is important for HFF to divest of real estate and separate rental operations from the daily operations of the HFF. On the other hand, HFF’s decision coincides with the government´s policy of increasing the supply of rental property offered for long-term rent.
The rental company Klettur ltd.
The main objective of the rental company Klettur ltd. is to offer suitable rental housing throughout Iceland, with the intent to support long-term housing security. The total value of the 524 transferred assets is approximately ISK 7.7 billion. The estimated turnover in 2013 is approximately ISK 700 million. Operating profits will be reinvested in organic operational growth.
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For further information contact Sigurdur Erlingsson, CEO
Phone number: +354 820 6329