Reitir plans 100-bed nursing home at Borgartún 37

Reitir’s proposal to create about 100 nursing-home beds at Borgartún 37 has been selected in a market survey by the state property agency Framkvæmdasýslan – Ríkiseignir (FSRE), mbl.is reports. A final agreement depends on the parties reaching terms for a lease.

The proposal calls for expanding the building by 700 square metres, bringing its total size to about 7,300 square metres. Reitir estimates annual rental income of about 440 million Icelandic krónur under its bid.

Bids were assessed on factors including price, size, location and safety, according to a Reitir stock-market announcement.

Reykjavík’s planning official initially opposed converting the Nýherjahúsið building at Borgartún 37 into a nursing home, citing its proximity to busy roads and concerns about air pollution and noise in outdoor spaces. A petrol station south of the property was also considered an unsuitable neighbour.

Reitir later revised its proposal and received a more positive response from the city. Lára Hilmarsdóttir, Reitir’s communications manager, told mbl.is that a key change was a redesigned outdoor space better suited to a nursing home. The proposal is still under review.