Íbúðalánasjóður - Company Announcement

The Housing Financing Fund establishes a rental company

Today, the Board of Directors at the Housing Financing Fund (HFF) decided to
establish a residential real estate rental company from a part of the real
estate owned by the HFF. The rental company will assume ownership and operation
of 524 properties owned by HFF throughout Iceland, as of January 1st 2013. The
majority of these properties are already occupied by tenants. 

The newly established rental company has been named Leigufélagid Klettur Ltd
and it will initially be a wholly-owned subsidiary of the HFF. The rental
company will be run independently with its own board of directors. Existing
rental contracts will be transferred to the rental company without any
interruption for the tenants. HFF´s Asset Management division will manage daily
operations for the rental company Klettur ltd. until the new company is fully
operational. 

Following the establishment of the rental company, the HFF still has
approximately 1,700 properties of which close to 400 are in rental operation,
and the tenants are not affected by this change. 



HFF's objectives in the establishing the rental company

HFF has two goals when establishing the rental company. On one hand it is
important for HFF to divest of real estate and separate rental operations from
the daily operations of the HFF. On the other hand, HFF's decision coincides
with the government´s policy of increasing the supply of rental property
offered for long-term rent. 



The rental company Klettur ltd.

The main objective of the rental company Klettur ltd. is to offer suitable
rental housing throughout Iceland, with the intent to support long-term housing
security. The total value of the 524 transferred assets is approximately ISK
7.7 billion. The estimated turnover in 2013 is approximately ISK 700 million.
Operating profits will be reinvested in organic operational growth. 





           Rental assets          
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Region               No.apartments
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Great capital area        211     
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Southwest peninsula       99      
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West                      56      
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West fjords                4      
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North                     49      
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East                      55      
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South                     50      
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Number                    524     
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Space                  48.000 m2  
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For further information contact Sigurdur Erlingsson, CEO

Phone number: +354 820 6329

e-mail: fjolmidlar@ils.is