Vincent Tan's five-star hotel project in Iceland faces opposition from port authority — report

Tan Sri Vincent Tan Chee Yioun

Tan Sri Vincent Tan Chee Yioun

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KUALA LUMPUR (Nov 16): Berjaya Corp Bhd founder and executive chairman Tan Sri Vincent Tan Chee Yioun's plans to build a five-star hotel in Iceland face opposition from Iceland's port authority, who argues that the proposed development will encroach on its lot, according to a news report.

The Iceland Monitor, citing a report by Morgunblaðið, said Tan plans to build a 150-room, Four Seasons hotel on the Miðbakki wharf by Reykjavík harbour, in addition to apartments.

Furthermore, the news report said Tan has secured RM1.2 billion to fund the hotel.

However, according to the vice chairperson of the board of the Associated Icelandic Ports and member of the Reykjavík City Council Kristín Soffía Jónsdóttir, Tan's plans go far beyond current city planning, said the news report.

In the report, Jónsdóttir said that no agreement exists between Tan and Reykjavík harbour.

"Plans for the 30,000-square-metre (323,000-square-foot) hotel extend into a lot owned by the Associated Icelandic Ports," stated the report.

"There are no doubts many who want to build on Miðbakki wharf. But [Tan] has no argument suggesting he'll ever get permission to build there," said Jónsdóttir.

"It is amazing to be applying for a change to city planning on a lot that is not under your control," she added.

On Oct 27, the Associated Icelandic Ports submitted its letter of dissent to the planning officer.

Meanwhile, Tan's representative in Iceland, Tryggvi Þór Herbertsson, confirmed that the luxury hotel project is approved and could begin operation in the first half of 2023.

It was reported last year that Tan planned to build a luxury hotel in Iceland as he believed the Icelandic hotel market had great opportunities to connect Iceland and Asia.

In January this year, Tan became a 75% stakeholder of Icelandair Hotels.

At the 12.30pm break, shares in Berjaya Corp had fallen half a sen or 2.63% to 18.5 sen, valuing it at RM972.26 million. It saw some 3.43 million shares traded.

Lam Jian Wyn