Schon Properties, a major UAE property developer, has announced the transfer of 2.33 million sq ft developments at Dubai Lagoon to Xanadu Real Estate Development – a landmark move in the overall development of the Dh7 billion ($1.9 billion) master-planned mixed-use project.

The move paves the way for the development of Dubai Lagoon and other projects on the same site by multiple developers, said a statement from Schon Properties.

As per the deal, Xanadu Real Estate Development – a Dubai-based private developer, will develop the residential component of Dubai Lagoon.

The transaction marks a major milestone in Dubai real estate market that will help boost investor confidence, it stated.
 
This deal is set to create synergies amongst developers that will help the projects to be fast-tracked for delivery before the Expo 2020 mega event.

On the major property acquisition, Schon Properties said the agreement involves the development of 2.33 million sq ft area in three phases of Dubai Lagoon, including Rowan, Lilly and, Winterberry developments.

It 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, it added.

"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," remarked Noorul Asif, the chief operating officer of Schon Properties.

"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," he stated.

Asif pointed out that due to its close proximity to the Dubai Expo 2020 site and the new metro line – Expo Link passing by the site, the development’s market price has 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," he added.

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.

Asif said 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," he added.-TradeArabia News Service