Chinese business tycoon Huang Nubo stated on Thursday that his company is expected to sign a 99-year-long land lease agreement with the Icelandic government as early as in mid-October.

Huang, chairman of the Beijing Zhongkun Investment Group, had planned to buy a piece of land known as Grimsstadir a Fjoellum in Iceland for the creation of a top resort and tourist facility, but the Icelandic Ministry of the Interior rejected his offer last November.

Huang was then forced to consider a long-term lease of the land. He expressed his optimism about the progress of the deal as the Icelandic Ministry of the Interior attended a meeting that saw the approval of the agreement .

Huang said the Icelandic side has recently sent the company a copy of a first draft agreement, which is currently being reviewed by the company.

The two sides are expected to seal the deal in China next month and will then move on to submit the deal to Chinese authorities for approval.

"There will be no problem in getting domestic approval," Huang said. The company's application for purchasing the land already obtained approval from the local government agency last October.

However, the investment going into the land will shrink due to the change in plans, Huang said. His company had originally planned to spend $8.8 million on the acquisition of the land, with an initial investment amounting to $200 million.

Huang said his company plans to build luxury hotels, resorts and outdoor sports bases across the 300-square kilometer area in the northeast of Iceland.

Related

• Iceland denies Huang's bid to buy land
• Chinese investor Huang to open tourism firm in Iceland

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