Reitir fasteignafélag hf. and the contractor Þarfaþing ehf. have signed a turnkey (design-and-build) contract for construction of phase one of the Kringlureitur development. This is stated in a company announcement from Reitir to the stock exchange.
The contract value is just over ISK 10 billion. The number of apartments will be around 170, and construction is expected to take about four years.
Reitir and Þarfaþing signed a letter of intent a little over a month ago, expressing their joint intention to conclude an agreement on cooperation for the development of residential housing with a parking structure at Kringlureitur, on the basis of assumptions shaped in prior negotiations.
“The project entails a turnkey contract for the design and construction of completed residential housing and a car park. The new residential area by Kringlan is based on ambitious planning and harmonized provisions within the neighborhood,” Reitir’s announcement says.
At the end of March, the Reykjavík City Council approved an agreement with Reitir on the first phase of development in the Kringla area.
According to the landowner’s concept, around 418 apartments are envisaged on the plots, along with commercial premises—about 56,000 m² of residential floor area and just over 11,000 m² of commercial space.
Demolition of the former Morgunblaðið building on the Kringlureitur site began last month. Reitir’s investor presentation last month noted that public notice of the detailed local plan has concluded and the period for submitting comments on the plan expired this summer.
The real estate company has stated that over the longer term, development projects such as Kringlureitur will account for the majority of the growth targeted in its growth strategy.
Source: Vb.is
