Chinese firm to sign land deal

冯鹏程 原创 | 2013-07-21 18:49 | 收藏 | 投票
《Chinese firm to sign land deal》资本运营专家冯鹏程教授接受环球时报采
Chinese firm to sign land deal
Beijing Zhongkun Investment Group Co will sign a land lease and development agreement with the Icelandic government at the end of October or in early November, the company told the Global Times Monday.

The company plans to lease 300 square kilometers of land in the northeastern part of Iceland with the rent of about $6 million for 99 years. The company plans to turn the site, about 0.3 percent of the country's total land area, into an eco-tourist resort.

Zhongkun refused to reveal more details before signing the agreement but expressed its confidence in this investment, as Iceland, near the North Pole, has unique natural landscapes while a less developed tourism market compared to the markets in North America and Western Europe.

The cooperation between Zhongkun and Iceland will bring convenience to Chinese tourists and job opportunities to local residents, a spokesperson for the company, who declined to be named, told the Global Times.

According to an initial development plan sent to the Global Times by e-mail Monday, the company will construct a five-star hotel and outdoor recreation facilities like golf links and racecourse with an investment of $200 million.

The company is also considering developing resorts in other northern European countries, like Denmark and Finland, Beijing Morning Post reported Monday, citing earlier remarks made by Huang Nubo, CEO of Zhongkun Group.

"It's a good timing for Chinese real estate companies to invest in European countries that are suffering from sluggish economy, as they could get land at lower prices," Song Ding, director of the Tourism and Real Estate Industry Research Center with the Shenzhen-based China Development Institute, told the Global Times Monday.

Although many European countries' domestic economies are stagnant, they are still providing Chinese investors with promising markets, as their financial investment systems are mature, which is good for their long-term development, according to Song.

On September 11, Beijing Capital Land signed an agreement with French government and plans to construct a Sino-French economic and trade cooperation zone in France.

Zhongkun's investment plan in Iceland was first proposed in August 2011.

However, the plan was nearly abandoned following the disapproval from the interior ministry of Iceland in late November 2011, on the ground that such investment was forbidden under Icelandic laws.

In order to avoid head-on clash with the local governments during overseas investment, Chinese investors should have more understanding of local laws and regulations, Feng Pengcheng, a research director with the Institute of International Economy at University of International Business and Economics, told the Global Times on Monday.
Q Q: 542328137,1668972957
冯鹏程教授 全国著名资本运营专家 对外经济贸易大学中国资本运营研究中心主任、教授 中国人民大学经济学博士 厦门大学工商管理学博士后 北京大学总裁班授课教授 清华大学EMBA班授课教授 中国人民大学EMBA授课教授
每日关注 更多