The History of Öldungur hf.
Öldungur hf. was founded at Securitas initiative. With the health sector mostly run by the State, Securitas found that new opportunities for private entities could be hard to fetch, at least for a while, but also realized that increased private participation in the health sector was the most recent development in neighbouring countries, both in the Nordics as well as in the United Kingdom.

In the beginning of 2000, in an attempt to elicit new solutions to the growing demand for health services by means of private public initiative (PPI), the Ministry of Health and Social Security invited for participation in a pre-selection of private parties, who would build and operate for 25 years a nursing home with 60 apartments for elderly. This was a due opportunity for Securitas, now already teaming up with IAV, the largest building contractor in Iceland, to form a joint venture, named Öldungur hf., which subsequently announced its participation in the pre-selection.

The joint venture became one of three parties selected to participate in a tender process of the PPI project. In its tender, Öldungur hf. offered 1,5% lower contract price compared to its competing bidders, and was furthermore acknowledged for better design of the accommodation and organization of the services. All the offers were declined as being too high in the estimate of the Ministry of Finance and the Ministry of Health and Social Security. However, the State entered into negotiation with Öldungur hf., which resulted in a contract between the two, based on the tender offer but with two key variations; a reduced cost per resident by 2,3%, and a larger nursing home, i.e. 92 apartments.

With this contract at hand, signed in April 2000, Frumafl hf. was spun off as a separate entity from Securitas’ mainstream business, intended to provide services in the health sector. Frumafl hf. took over the 85 per cent equity stake in Öldungur hf.  IAV contractors sold their shares in January 2007 to Öldungur hf.

In 2009 there were changes in the ownership of  Öldungur hf., when Íslensk heilbrigðisþjónusta ehf., and Hjúkrunarmat og ráðgjöf ehf., became the owners of all the shares.

The Mission of Öldungur hf.
The mission of Öldungur hf. is first and foremost to carry out the Soltun project, i.e. to:
- Enter into and complete the construction of the SOLTUN nursing home, and
- Run the SOLTUN nursing home throughout the contract period of 25 years

The SOLTUN Project.
The Soltun Project is the first Private Public Initiative project in the health sector in Iceland. Great effort was made in preparation and documentation in the tender process. All aspects of the services and the building itself are thoroughly defined and stringent requirements have been  made to all phases of the implementation.

IAV  a large building contractors in Iceland undertook to build the Soltun nursing home, located at Soltun-street in Reykjavik.

The SOLTUN Contract.

Öldungur prepared carefully its tender offer in light of the strategic importance of entering into the health sector as a private enterprise. In preparing the tender offer, the company set up a strong advisory group to get all the basics, facts and figures duly in place. Included in the advisory group were:
Mrs. Anna Birna Jensdottir, Executive Geriatric Nursing Director at the time of Landsspitali (the National University Hospital),
Mr. Johann Árnason, Managing Director of Sunnuhlid, a nursing home for 60 elderly.
Mr. Hannes Gudmundsson, Managing Director of Frumafl hf., and
Mr. Gudmundur Arason, Managing Director of Securitas.

The architect of the building is Hróbjartur Hróbjartsson.