The plot, sitting in one of the northernmost points of the world, has high climate and geopolitical importance.
ADVERTISEMENTThe last remaining privately owned land on the Svalbard Archipelago in Norway, “with significant environmental, scientific and economic importance” is on sale, for €300 million.
“This is a once-in-a-lifetime opportunity to acquire land on one of the world-famous Svalbard islands,” said Will Matthews, Head of Farms & Estates at Knight Frank to Euronews Business.
Global real estate consultancy Knight Frank, which is marketing the Company holding 100% of the land, said that it is a “unique environmental, philanthropic and conservation opportunity.”
The land has a strategic location and is of geopolitical interest
The geopolitical competition in the region between the United States, Russia, and China is tangible, there have been increased military operations in the region by Russia. There is also an increase in commercial shipping through the Arctic. The diminishing sea ice, due to climate change, opens up the way to more oil, gas, and mineral exploration in the Arctic.
Svalbard has exceptional strategic importance because it is “essentially the gates to the Arctic,” reads the brochure noting that the place is ideal for controlling navigation and air traffic in the Arctic Ocean, for instance.
Location, location, location
Svalbard, between mainland Norway and the North Pole, is one of the world’s northernmost inhabited areas.
Almost 3,000 people live on the nine main islands of Svalbard which has its own university (UNIS) and among other things is famous for the Svalbard Global Seed Vault.
Before the entire area was built upon the coal industry, but these days research, satellite data downloading and tourism have also become important supplementary industries.
The land, called Søre Fagerfjord, which is up for sale now is 14,830 acres (approximately 60 sq. km), almost ten times the size of Gibraltar. It is at Wedel Jarlsberg in Western Svalbard, recognized in the Svalbard Treaty, signed in 1920. All other properties on Svalbard are owned or controlled by Norway or Russia.
Bloomberg, which reported first the news, noted that controversy erupted in 2014 when another privately owned property, holding coal mining land in the region got an offer from a Chinese buyer but the Norwegian state bought it finally instead.
Why this is the place for ‘conservation and philanthropy’
The land up for sale has a considerable amount of land which can be protected or developed, according to the new owner’s interest.
Midway between the northern coast of Norway and the North Pole in the Arctic Ocean, approximately 60% of the archipelago is covered with glaciers. The islands feature many mountains and fjords. The archipelago has an Arctic climate, although with significantly higher temperatures than other areas at the same latitude.
Svalbard is a breeding ground for many seabirds, and is home to polar bears, reindeer, the Arctic fox, and certain marine mammals. The archipelago has 24-hour sunight between 20 April and 22 August.
Seven national parks and 23 nature reserves cover two-thirds of the archipelago.
“This is the ultimate investment of passion for a UHNWI with a genuine interest in conservation and future-proofing this diverse landscape,”
The temperatures in the Arctic continue to rise at three times the global annual average, driving many of the changes underway in the Arctic.
The sale comes as the Svalbard region has had less sea ice, more rain and higher temperatures because of climate change.
Who can buy it?
“The sellers will sell to the highest bidder,” quoted Bloomberg Per Kyllingstad, a lawyer representing the sellers.
ADVERTISEMENTSeemingly the opportunity is open to almost anybody, a lot of countries, individuals or companies. The only restriction as to who can buy the private company, holding the ownership of the land is to originate from a country that ratified the Svalbard Treaty. There are almost 50 of these countries across the globe, according to Wikipedia, including Russia and China.
“We are currently speaking with a collection of ultra-high-net-worth individuals from across the globe who each have a passion for conservation and philanthropy,” told Will Matthews from Knight Frank to Euronews. “We are working hard to find the next custodians of this beautiful land, with the means to take action against the wider environmental factors at play, protecting the diverse flora and fauna that call these 14,800 acres of land home.”