Iceland to Re-Examine Chinese Billionaire Huang Land Lease Deal

Iceland has appointed a taskforce to review Chinese billionaire Huang Nubo’s plan to lease land from local municipalities and sidestep the government’s decision to block his efforts to build a golf resort on the island.

“The decision of the government was to put together a group of ministers and ministries which will review the matter,” Interior Minister Ogmundur Jonasson said to reporters in Reykjavik yesterday. “The attitude in this matter is that nothing irreversible has happened.”

Huang said in a July 16 interview he had secured a deal to lease the land he needed for his resort. A formal agreement on the $7.8 million deal will be signed in October, he said.

Iceland’s government in November rejected a bid by Huang’s Beijing Zhongkun Investment Group Co. to buy 300 square kilometers (116 square miles) of land, saying it would be “incompatible” with the law amid opposition to foreign ownership of property. Huang plans to develop a resort and a mountain park in Iceland before investing in Denmark and Sweden to build a “Nordic holiday resort platform,” he said.

Beijing Zhongkun plans to build a hotel, about 100 villas and a golf course on the land, which could be leased for 40 years with an option to extend the contract by another 40 years, Huang said.

The remaining roughly 300 square kilometers of land will be developed into a mountain park for activities such as hiking and horse riding to attract tourists, he said.

Huang is estimated by Forbes magazine to have a fortune of $1.02 billion.

To contact the reporter on this story: Omar Valdimarsson in Reykjavik at valdimarsson@bloomberg.net

To contact the editor responsible for this story: Jonas Bergman at jbergman@bloomberg.net

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