UK-based Crescent Hydropolis Resorts has reached agreement with the People's Government of Laoshan District, Qingdao to allocate land and sea rights required for building Hydropolis Qingdao, the world's first underwater hotel and resort.

An agreement has also been reached on the technical specifications of the resort and Laoshan has confirmed within their established authorities that all necessary regulatory and licensing approvals will be put in place.

The proposed investment in Hydropolis Qingdao is expected to be approximately US$700 million from a mix of permanent construction loans and private equity from investors, said Crescent.

Under terms of the Agreement, the HydroTower Landstation will be located on 33,000 sq meters of land that comprise the previous location of the Ocean Entertainment Park in Qingdao.

The HydroTower component is expected to be complete prior to the start of the 2008 Beijing Summer Olympic Games, with the sea-based Hydropalace to be in operation in 2009.