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The company behind the troubled Dubai Lagoon project in Dubai Investment Park expects the entire development to be completed by 2016.
And Schon Properties has revealed work on Zone 1 is almost finished and handover is scheduled for the second half of 2014.
A spokesperson told Construction Week Online: “We have finalised funding for the project and the project will be built on a funding and off-plan sales model.
“After the previous [property] crash, we will not rely solely on off-plan sales going forward to build the development, and have arranged partial funding for completion of the project.”
Dubai Lagoon, which spans seven zones across a 5.7m sq ft site, was among dozens of real estate projects in Dubai impacted by funding issues following the collapse of the Emirate’s property market in 2008.
The resort, which was meant to house the region’s first crystalline lagoon, suffered delays after hundreds of the project's investors defaulted on their payments in the wake of the financial crisis.
Units which were originally marketed for sale under a five-or seven-year payment plan were also no longer feasible for many investors following the downturn, creating a negative feeling among buyers.
The spokesperson said: “There were many factors for the delay of the Dubai Lagoon project, despite our best efforts to avoid them.
“The project was launched on January 2006, but a hold on the building permit was issued on March 2006 because of the Road and Transport Authority’s Purple Line of the Metro being incorporated in master plan.
“After the new affection plan, given by Dubai Municipality and a new building permit was awarded in November 2007, the real estate market crashed in October 2008, decreasing sales by 98% and decreasing collections by 95 percent.”
However, the spokesperson confirmed that funding was in place in order to push through the completion of the masterplan.
“Nearly 97 percent of our investors have continued with us,” they said.
“We have faced 3 percent default from purchasers who had purchased at high prices.
“We have offered investors discounts of up to 40 percent on outstanding invoices through the downturn and co-operated with existing buyers by shifting them to earlier completion zones.”
The company will soon be disclosing details on funding ventures and new tie-ups.
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@SA1. I'm impressed with your "rotten tomatoes" example. The analogy you draw between sitting next to a human being who happens to be obese and buying... more
Wednesday, 28 September 2016 4:19 PM - WHJI think its a very good idea. it will attract more investors to come and invest in this country. Also it's good for the economy more
Wednesday, 28 September 2016 4:18 PM - Taimoorso no experience, no business savvy or market understanding is worth the same salary as someone that has spent 8-10 years in the same role? From a practical... more
Wednesday, 28 September 2016 4:21 PM - Mick@SA1. I'm impressed with your "rotten tomatoes" example. The analogy you draw between sitting next to a human being who happens to be obese and buying... more
Wednesday, 28 September 2016 4:19 PM - WHJThe real issue comes into play when you think of families with young children. Previously you could block seats together so that you can look after your... more
Tuesday, 27 September 2016 10:03 AM - DadBtw: Disintermediation, great word, I'm adding that to my lexicon. Just goes to show, every day is a school day. more
Sunday, 25 September 2016 9:16 AM - FentoniNo, this is not the way to go. You want to turn the UAE into a ex-East Germany country where neighbors were spying on each other? This is the duty of the... more
Wednesday, 14 September 2016 8:13 AM - Paolo CSo the bill was vetoed last night by President Obama anyway. The Obama administration argues that the legislation would remove the sovereign immunity that... more
Sunday, 25 September 2016 1:12 PM - Fentoni@SA1. I'm impressed with your "rotten tomatoes" example. The analogy you draw between sitting next to a human being who happens to be obese and buying... more
Wednesday, 28 September 2016 4:19 PM - WHJ
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