Ármúli Clinic, a private healthcare provider, has recently concluded a multibillion ISK deal with real estate developer Reitir to expand services, reports Stundin.
Having secured a 20-year lease, the project aims to convert the clinic into a hospital over the next two years, with a large expansion in bed space and services provided.
According to Sigurður Björnsson, the clinic’s current managing director, there has been significant growth in the last years and the clinic intends to expand operations further.
Currently, the clinic specializes in joint replacement surgeries, preventative breast surgeries, orthopedic surgery, and treatment for obesity and other metabolic problems.
The Ármúli clinic is also the only private clinic in Iceland with an inpatient unit.
In an interview with Stundin, Sigurður stated “once we have gone through this, we will truly be a real hospital in every way. There will be everything here that can be found in a normal hospital. We are tripling the space we are in.”
A 20-year lease
The clinic itself will not be investing in the construction. Instead, Reitir, owner of the Ármúli real estate, is expected to take on the necessary work of expanding the facilities. Some ISK 2.8 billion are expected to be invested in the clinic to make the necessary changes.
The project is currently slated to be completed in the second half of 2024, with an annual lease for the newly improved property at ISK 270 million. Over the period of the lease, this will represent at least ISK 5.4 billion in revenue for the real estate developer.