Reykjavík City Buys Laekjargata 2 for ISK 321 Million Skip to content

Reykjavík City Buys Laekjargata 2 for ISK 321 Million

Reykjavík City authorities signed a contract with real estate company Eik on the purchase of the burnt-down historic building on Laekjargata 2 in central Reykjavík yesterday, worth ISK 321 million (USD 4.2 million, EUR 2.7 million).

In November, 2007, Reykjavík City bought the adjacent building on Austurstraeti 20 for ISK 263 million (USD 3.4 million, EUR 2.2 million). Both buildings, historic timber houses and two of the oldest buildings in Reykjavík, were destroyed in a fire in April 2007, Fréttabladid reports.

“It is very important to have control over the entire area [on the corner of Laekjargata and Austurstraeti] to reconstruct it as a whole,” said Jórunn Frímannsdóttir, chairman of the executive and properties council of Reykjavík City. “We aim to rebuild it quickly and then sell the properties. In the end, the city will hopefully not suffer losses because of this.”

Reykjavík Mayor Ólafur F. Magnússon agrees, emphasizing that the city’s expenses for purchasing these burnt-down buildings are only temporary and that they will be sold after reconstruction.

“It is an acceptable price for lots and construction rights in the best location in the city. It is important that Reykjavík residents will be able to enjoy the reconstruction as soon as possible,” Magnússon said.

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