Key Significance
1. With the 2.33M Square Feet acquisition, Xanadu Real Estate Development will develop the residential component of Dubai Lagoon
2. The move paves the way for the development of Dubai Lagoon and other projects on the same site by multiple developers
3. The deal helps to create synergies amongst developers that will help the projects to be fast-tracked for delivery before the Expo 2020 mega event
4. The transaction marks a major milestone in Dubai real estate market that will boost investor confidence
Schon Properties, a major UAE property developer, today announces the transfer of 2.33 Million Square Feet Developments at Dubai Lagoon to Xanadu Real Estate Development LLC – a landmark move in the overall development of the Dh7 billion master-planned mixed-use project.
The agreement involves the development of 2.33 million square feet development of three phases of Dubai Lagoon, including Rowan, Lilly and, Winterberry developments. The announcement marks a major turning point in the history of Dubai Lagoon – which will now be developed by Xanadu Real Estate Development – a Dubai-based private developer.
“This is a historic moment for all of us as well as the real estate fraternity and the deal signifies the strength of partnership in developing large projects,” Noorul Asif, Chief Operating Officer of Schon Properties, said. “This historic agreement will ensure Xanadu Real Estate Development will deliver Dubai Lagoon. We are confident with Xanadu’s track record, they are the perfect partner to acquire the projects and deliver Dubai Lagoon to the buyers. We would like to thank all stakeholders, RERA and Dubai Lands Department officials for their continued support towards the sector and the project to ensure completion happens. Their approval was mandatory on the deal for us to allow for the acquisition of the projects.”
Due to the site’s close proximity to the Dubai Expo 2020 site and the new metro line – Expo Link passing by the site, the development’s market price started to gain. As a result, Xanadu has decided to increase its investment to acquire the residential component of Dubai Lagoon and build the project with its own resources.
The deal price remains undisclosed but marks a significant development in project execution where multiple investors and developers could join hands to develop different components of the master-planned community and hand over to the buyers in time – that will boost investor confidence in real estate.
Noorul Asif says, the deal will enable Schon Properties to focus on developing iSuites – a massive home-grown hospitality portfolio that will see the development of 2,550 hotel apartments. Additionally, Schon has committed its focus towards hospitality, and this further proves their commitment toward the sector.
About Schon Properties
Schon Properties, one of the top private real estate developers in the UAE, has an 8 million square feet development portfolio valued at Dh7 billion. The company has over 3,000 customers and as of October 2016, has successfully delivered over 1.6 million square feet of developments till date. Schon was the first company in Dubai to launch affordable housing targeting midmarket buyers, and the first company to introduce a post-handover payment plan.
Schon Vision 2020 entails focusing on sustainable income models via hospitality investments next to EXPO 2020. As a corporate policy, the company intends to retain its assets for sustainable income, as opposed to conventional methods of sales used by other developers. With a staff of over 400 and being vertically integrated, the company strives itself on corporate governance and best practices worldwide.
About Xanadu Real Estate Development LLC
Xanadu from PGS Gulf Contracting, established in 2010, is the brainchild of two enterprising engineers, who between them bring more than 40 years of collective global experience in Property Development, Construction, Sales and Asset Management.
Today, with residential developments worth more than Dh8 billion, exceeding approximately 8 million square feet, Xanadu has transformed the real estate market with its bold new strategies, approach and a proven track record of success, clearly emerging as one of the leading beacons of the industry in Dubai, all in a span of just under four years.
Xanadu’s rapid growth can be attributed to the lead-by-example philosophy of its two dynamic founders, Adel Al Breiki and Cenk Yabas. Displaying a rare passion, commitment and the courage to lead from the top, and indeed from the front, the enterprising duo have achieved success with their hands-on policy of taking on the mantle of every function personally, right from financing the projects, to architectural design, construction, choosing the right interiors, sales and even after-sales services.
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