Huang Land Deal Attracts Attention Abroad Skip to content

Huang Land Deal Attracts Attention Abroad

Chinese state broadcaster CCTV ran a story on Chinese investor Huang Nubo’s company’s plans to rent the piece of land Grímsstaðir á Fjöllum in Northeast Iceland yesterday.

grimsstadir_a_fjollum_jan2012_psGrímsstaðir. Photo by Páll Stefánsson.

CCTV correspondent Jack Burton reported that “it seems that a deal has been struck that is beneficial, very beneficial, to both parties. Now Iceland gets this enormous development. Of course that comes with the job creation and the influx of tourists, and the [Zhongkun] Investment Group gets this deal for about a third less than what they would have paid for it if they had bought it outright.”

According to reports last week, Huang’s company has offered to pay USD 5 million (ISK 615 million, EUR 3.86 million) for a 60-year lease of Grímsstaðir, as stated in a draft agreement. This is USD 3 million less than originally estimated.

After Minister of the Interior Ögmundur Jónasson rejected Huang’s application for legal exemption to buy the piece of land (a requirement for non-EEA citizens), employment development associations in seven municipalities in Northeast Iceland were asked to examine the possibility of municipalities buying Grímsstaðir and leasing it to Huang’s investment company.

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