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New times, fresh ideas and more potential
We all know that Icelandic society has changed enormously in recent years. Local authorities work in an environment that has undergone a major transformation. Residents and companies repeatedly demand a wider range of services and the demand for new buildings grows continually. A shareholding and partnership with Fasteign gives local authorities the option of building faster than would otherwise be possible, with a more even spread of costs in the long-term. In this way, local authorities can deal with their urgent building needs without adversely affecting other vital projects, and concentrate on securing local production and improving services to residents.
Powerful and trustworthy partnership.
Fasteign Holding Company hf. has brought exciting new options to the fields of construction and asset administration for local authorities and other public institutions. Local authorities transfer their properties to us in order to become partners in the company and gain unfettered access to our operations and future projects. During the last three years the number of partnering local authorities in the company has increased rapidly as more and more councils recognise the economic benefits of forging a partnership with Fasteign and join our growing list of asset holders.
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Gísli Kjartansson Savings Bank Manager
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How do we become a partner in Fasteign? Those who have become partners in Fasteign have not just become leaseholders – they are also owners. In this way they can influence the company’s decision-making process through their shareholding, and they also know that there will always be board members with similar interests. When new partners join Fasteign, they do so in one of two ways: either by transferring their existing property to the company or by commissioning Fasteign to construct a new building. New buildings In the case of new buildings, Fasteign will make an estimate of the cost when the design phase reaches the appropriate point. Once the estimate has been made, we draw up a draught lease agreement based on the estimate. Monthly payments are 0.685% of the total investment in the construction, which includes building costs and the cost of purchasing the site. When a new building is commissioned, the administrator assigns the building site to us and receives payment for the site as shares in Fasteign. Generally, the value of a site is around 15% of the total investment in the planned building. Existing buildings On the other hand, where a body wishes to become a Fasteign partner by transferring existing buildings to the company, the assets are valued by a competent party and the final value is agreed by negotiation. Once the price has been agreed, we pay 85% in cash and 15% in the form of shares that will make the investor a partner in Fasteign.
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Jóhanna Reynisdóttir former Mayor Vogum
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Guðmundur Bjarnason former Mayor Fjarðabyggð
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Margrét Sigurðardóttir former mayor Grímsnes- og Grafningshreppi
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Ásdís Halla Bragadóttir former Mayor Garðabæ
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Árni Sigfússon Mayor Reykjanesbæ
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We have absolutely no doubt that SPM Savings Bank has benefited greatly since joining forces with Fasteign hf., allowing the holding company to build reception and office buildings for the bank and to oversee their operation and maintenance. Fasteign hf. can call upon specialists in many fields, and the division of labour has given us more time to concentrate on our own specialist services.
Having seen the work practices and service that Fasteign hf. offers, I have no doubt at all that our partnership will be a financially efficient route for this local authority. I can unreservedly recommend the company to other authorities and suggest that they consider the benefits that Fasteign hf. brings to construction in the interests of residents. 
I am certain that this method of financing local authority projects is a good choice for investing in local public assets. The size of the company, its specialist knowledge and decades of professional experience all contribute to shortening construction periods and reducing building costs. Property maintenance is more regular, ensuring a longer working lifetime.
Grímsnes and Grafningshreppur District Council decided in 2004 to join Fasteign Holding Company hf. to finance and build a school and administration centre, followed at a later date by a swimming pool and sports hall in Borg. All my dealings with Fasteign managers and staff have been excellent. Things happen quickly and securely.
I have no doubt that local councils can benefit greatly from arrangements of this kind for building and operating their property. Fasteign hf. staff have a vast depth of specialist knowledge and they find the most economical solution every time. Fasteign hf. assumed responsibility for building Sjálandsskóli School and satisfactorily completed the project on time, at a cost that was considerably less than that originally pencilled in by Gardabær council.
When local authorities were required to establish “asset accounts” and to make leasing agreements with the respective institutions, we found a suitable solution for Reykjanesbær. Along with other local authorities, we established Fasteign Holding Company hf. That has turned out to be a very popular solution; interest options and the ensuing lease options are very beneficial, project lifetimes are shorter because of specialists available in a large organisation, and maintenance is no longer an afterthought as it often is with public bodies.