Billionaire Huang gives China toe-hold in Iceland

(Ecns.cn) -- Chinese billionaire Huang Nubo, chairman of the Beijing-based Zhongkun Investment Group, has confirmed that his company will lease a piece of land in a remote corner of northeast Iceland, according to reports Wednesday.

But the company has not offcially signed the contrace with Iceland and is still negotiating details of the agreement, and the final result is expected to be announced in one to two months.

According to Huang, Zhongkun will invest about US$200 million on this land, and the lease time will be 99 years.

Huang, who plans to build a golf course, hotel and outdoor recreation area, had originally proposed to pay about 1 billion Icelandic krona ($8 million) for the land. The Icelandic government rejected that offer last November, according to Reuters, saying it did not meet legal requirements on foreign ownership.

Iceland is recovering from its worst-ever financial crisis after the complete collapse of its top banks in 2008, and it is keen to lure foreign investment to boost economic output.

Huang who was 161st on the Forbes list of the richest Chinese in 2010, has said he plans on building up tourism infrastructure in this sparsely populated part of Iceland.

Chinese premier Wen Jiabao was in Iceland recently, marking the first visit there by a Chinese head of state. His visit resulted in agreements between Iceland and China to cooperate in the Arctic region, in marine and polar science and geothermal energy.