Baltasar Kormákur’s RVK Studios has unveiled plans to build a media village on the site of a former fertiliser factory, in a move timed to capitalise on the increased rebate on film production in Iceland from 20% to 25% in 2017.

Kormákur hopes to use the studios on the new site to film his long awaited Viking movie, optioned by Working Title and Universal, which he believes will enable him to shoot 90% of the project in Iceland.

Reykjavík City Council has agreed to sell four properties in Gufunes to RVK Studios, totalling 8,391 square meters in a deal worth ISK 301M (€2.15M). An additional ISK 2M per year will be paid for the next three years as an option on a further 19,200 square metres east of the buildings.

However, payment will be made in two instalments: one when the buildings are taken over by RVK Studios in August, and the other in February 2017. This arrangement will allow time for a survey to be completed to assess the extent of any ground pollution.

According to RÚV, Reykjavík City Council is liable for the cost any clean-up operation, but if the soil is deemed too polluted then RVK Studios have the option to terminate the contract.