Sunday, August 24, 2008

Schon assures complete refund to Dubai Lagoon investors

Schon Properties, the developer of Dh.3bn Dubai Lagoons Project, has assured complete refunds to all investors who have bought properties in the project, which had been scheduled for completion by December 2007.

This refund policy has been extended by Schon, as an act of goodwill, following some initial confusion among investors with regards to the phases of the project and its revised dates of completion, the company revealed yesterday.

The delay in completion of Dubai Lagoon project has been due to the unanticipated alterations in civic and transportation infrastructure, which in turn, have resulted in delayed construction and re-scheduling issues have cropped up, the company said.

The Co-Chairman of Schon Properties, Nasser Hussain, speaking to the media, said " Schon properties completely supports and applauds the efforts made by RTA towards improving the infrastructure in Dubai, and we have altered our projects to suit the mandatory infrastructure requirements imposed subsequent to the launch of Dubai Lagoon."

Schon has been holding talks with RERA (Real Estate Regulatory Authority) to clarify the situation and arrive at a fair solution for all parties involved. The revised refund policy announced by Schon, has been approved by the Board of Directors of the company, during a Board meeting held this week, to accommodate investors and exhibit good faith.

Investors who have purchased units bearing completion date of December 2007, can claim complete refund, and can apply for this prior to 15th September 2008.

RERA had issued a press release last week which said that the project has not been cancelled and requested continued involvement and monitoring of construction works.

Schon also assured that the agreement with the original contractors, Powerline Gulf, has been re-negotiated to include the first two zones and construction would resume during the coming weeks.

The first zone is due for completion within 13 months, while the second zone is set for completion within 18 months as on 28th July. Negotiations are on with another leading contractor to handle remaining zones, currently being finalized.

No comments: