Arion Bank opens exclusive talks on 14 to 16 billion króna land sale

Arion Bank has entered exclusive negotiations with Icelandic Securities on a proposed sale of all shares in Blikastaðaland ehf. for 14 billion to 16 billion króna, mbl.is reports. Icelandic Securities is acting on behalf of a specialised fund that has yet to be established.

Blikastaðaland ehf. owns and is developing Blikastaðaland, a development area in Mosfellsbær. The company is a subsidiary of Arion Bank called Landeyjar.

Icelandic Securities is working with real estate development company Klasi ehf. on the proposed purchase. Klasi would develop the project and act as a cornerstone investor in the fund. It is owned by Hagar, Heimar and KLS holding company.

The negotiations are based on an offer submitted by the fund in the second phase of the sale process. The parties hope to complete negotiations and sign a purchase agreement before the end of the year, with the transaction expected to close in the first quarter of 2027, according to a stock exchange announcement.

Arion Bank currently values Blikastaðaland ehf. at 7.6 billion króna in its accounts. The bank has not decided whether to revise that carrying value, citing uncertainty over conditions attached to Icelandic Securities’ offer.