Dubai Lagoon chiefs vow: 'No more delays'

LAGOON PLEDGE: Schon Properties say the current real estate crisis will not cause further delays to their project.

The developer behind the much-delayed Dubai Lagoon project has vowed that the global economic crisis will not cause further setbacks to the scheme.

Bosses at Schon Properties, who came under fire earlier this year from disgruntled investors after long delays to the $598 million plan, added that they were "glad" about the current slowdown to the local real estate market.

Residential units which were initially scheduled for completion by December 2007 are now expected to be delivered in 2011.

Danial Schon, vice president, told Arabian Business: “We’re actually kind of glad about the situation going on because it’s helping us focus on the construction and consolidation of our existing portfolio of projects, meaning construction and delivery.”

He added: “We’re hiring the standard number of people. We are laying some people off and hiring others, but nothing out of the ordinary.”

Schon confirmed the company’s projects in Dubai are on schedule and will be delivered on time. The company’s projects include Schon Business Park, Schon Residences in Downtown Jebel Ali and Dubai Lagoon.

He said the correction was “very good for the Dubai market” and that it was “healthy” as it would help root out speculators. “It was bound to come,” he noted.

His comments come as one of the emirate’s largest developers, Nakheel, announced that it was laying off 500 people, comprising 15 percent of its work force.

The developer added it was also scaling back construction work on projects. Damac and Omniyat Properties had previously announced redundancies.

Schon added: “We don’t have major problems in terms of payments coming in. Most of our customers are paying on time and few are not. The only way to get through a recession or negativity in the market is to put our hands together and work with our customers and people.”

He said he was convinced the situation would ease early next year when he believed banks would loosen their tight control on lending.

On job cuts announced by other developers, Schon said those companies had hired people to meet their expansion plans, which have come to a halt.

“I think if any place has the probability of the least impact in terms of job cuts it is Dubai because it’s still a booming city. The city is still under construction.”

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READERS' COMMENTS

Investors of the dubai lagoon project
Posted by Bapu, Madrid, spain on Tuesday 2 December 2008 at 23:12 UAE time


Those of you who have invested in this project, we have a forum setup by the investors. All issues regarding this project is also discuss there.
http://dubailagoon.proboards81.com/index.cgi

Dubai Lagoon
Posted by aaqib on Tuesday 2 December 2008 at 19:25 UAE time


Why hasn't the subject of the newly appointed contractor 'Belhasa Contracting' not discussed when these same reporters of Arabian Business broke out this same news ?

I pass the same question to the bosses at schon properties ,
'When will Belhasa start construction when it was publicly announced they will be there in October '08 ?'

Unbelievable!!
Posted by SR on Tuesday 2 December 2008 at 14:57 UAE time

If any developer says they are not affected in this turmoil, it is a mere PR stunt, plain and simple!

Now the correction is good !
Posted by pureorama on Tuesday 2 December 2008 at 09:07 UAE time

All of a sudden the very same people who rubbished the possibility of a correction just a month back now wholeheartedly welcome it ! LOL.. and now they have even become sympathetic to defaulting customers!! LOL

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