ttt222 Post time 2011-9-1 20:41:15

Iceland land deal 'purely commercial'

Zhongkun Group's planned $100 million investment in Iceland is a purely commercial move without any political motive, the company's Vice-President Xu Hong told China Daily on Wednesday.

"It is a purely commercial decision based on our strategic business plan, and the land parcel we aim to get is an inland pasture without any military significance," said Xu, who has been involved in the entire project since the very beginning.

Beijing-based Zhongkun plans to buy 300 square kilometers of land in Iceland and build a high-end resort, with total investment of at least $100 million.

The resort will include a hotel, golf course and recreation areas, Xu said.

The Financial Times said on Monday that obtaining the site in Iceland would give China a strategic foothold in the North Atlantic.

"As a property developer committed to tourism real estate, the beautiful scenery of Iceland could complement our existing resorts. It is groundless that some people add a political factor into such a completely commercial decision," said Xu.

"Besides, it was Iceland that came to us first to promote the project."

Xu said Zhongkun signed a memorandum with the local government in Iceland and the land's owner on Aug 24, on the premise that the deal would be approved by the governments of both countries.

The deal has been agreed with private landowners but must still be approved by the Icelandic government, which owns part of the land.

Zhongkun's move is one way to explore another aspect of the property market, as the Chinese government's tightening measures targeting residential properties are set to continue.

Shao Mingxiao, Longfor Properties Co Ltd's CEO, said the company will increase the proportion of tourism real estate and commercial properties to diversify its risks.

"As the country's economy will be more consumption driven, demand for these two sectors will surge, and we expect the sales value of tourism real estate and commercial properties will account for 10 percent each within two to three years," said Shao.

ttt222 Post time 2011-9-1 20:41:41

Zhongkun Group's booth at a property exhibition in Beijing. The company plans to build a resort in Iceland with a total investment of at least $100 million.

Jackie456 Post time 2011-9-1 21:18:02

I wanna buy a house in Iceland, too.

:lol

NE_Tigress Post time 2011-9-1 21:40:12

Originally posted by ttt222 at 2011-9-1 20:41
Zhongkun Group's planned $100 million investment in Iceland is a purely commercial move without any political motive, the company's Vice-President Xu Hong told China Daily on Wednesday.  ... .

I predict this project can be a commercial success. It will be very attractive to Chinese tourists and property buyers.

[ Last edited by NE_Tigress at 2011-9-1 10:00 PM ]

BerndVonAnon Post time 2011-9-1 21:53:58

Originally posted by NE_Tigress at 2011-9-1 21:40
.

I predict this project can be a commercial success. I will be very attractive to Chinese tourists and property buyers.

Iceland is from very expensive now suddenly at very affordable tourism wise, if some compromises are accepted.
The domestic market can not support to keep up businesses that rely on foreign currency denominated imports any more, such services and goods that also depend on domestic market are therefore not available any more.

It is quite nice as well,
and for all concerns held up against chinese tourists,
they are not russians, so it should be somewhat allright with them.

LCSULLA Post time 2011-9-1 21:56:23

Originally posted by BerndVonAnon at 2011-9-1 21:53


Iceland is from very expensive now suddenly at very affordable tourism wise, if some compromises are accepted.
The domestic market can not support to keep up businesses that rely on foreign cu ...

Fully agree,

the market situation is such though,
that even McDonalds had to close down,
meaning a theoretical risk that a US Situation could be realistic:o

blueskies88 Post time 2011-9-1 22:45:26

Go Iceland!

It is hard to recover from a deliberate banking scam intended to bankrupt one from its conception!
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