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Chinese real estate tycoon to invest in Iceland

CNTV, September 5, 2011

 

Turning to an investment case that has been making plenty of headlines recently. Investing 200-million US dollars in Iceland, this is what one of China's real estate tycoon plans to do.

The Beijing-based Zhongkun Group is going to buy a 300 square kilometer tract of land in Iceland to build a high-end resort. Andrew Depuis tells us more about the case and the challenges facing the company.

A unique landscape, glacial rivers, and world-renowned hot springs.

The beauty and the commercial value of Iceland is attracting China's real estate tycoon group, Zhongkun, to invest in the country.

Chairman of the real estate agency, Huang Nubo, says he will buy 3-hundred square kilometers of land to build the resort in the island's northeast known as Grimsstadir.

Making up 0.3 percent of the country's total landscape, the resort will include a hotel, golf course, and areas for outdoor activities.

At a press conference on Friday, he gave reasons for the decision.

Huang Nubo, chairman of Zhongkun Group, said, "China's enterprises are growing fast, and the competition is very fierce in China. So we must go out, and expand our business to the international market."

He also stressed that his investment is purely for commercial purposes.

Huang said, "I really do not have any political motivation. If it involved politics, I wouldn't go there."

Meanwhile, the Icelandic government has also shown support for the investment, as expressed by Iceland's ambassador to Beijing, Kristin Arnadottir.

Kristin Arnadottir, Iceland's ambassador to China, said, "This is in alignment with the government policy of increasing foreign investment in Iceland of promoting Iceland as a tourist destination, and (as well as) environmental."

Huang Nubo says he hopes to win approval from the Chinese and Icelandic governments by February and to have completed the first phase of development by 2015.

If the investment mode proves successful, he will choose to invest further in other European countries.

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