Schon to fully refund Dubai Lagoon investors

Schon Properties, a Dubai-based developer, said yesterday that full refunds will be given to investors who had purchased units scheduled for completion by December 2007 in the Dh3-billion Dubai Lagoon project.

The statement came a day after Dubai's real estate agency said Dubai Lagoon project will "go ahead and has not been cancelled."

Schon Properties further said "delays in completion of Dubai Lagoon have been the direct result of unanticipated civic and transportation infrastructure alterations, which have set back construction and produced scheduling issues."

"We fully support the efforts of Road and Transport Authorities and other government agencies to make Dubai a better place and we have re-designed our project to accommodate mandatory infrastructure developments imposed subsequent to the launch of the Dubai Lagoon," said Nasir Husain, Co-chairman of Schon Properties.

The company said the revised refund policy was approved by Schon board of directors during a meeting held on August 19, to demonstrate good faith.

Investors, who purchased units with a completion date of December 2007, are eligible for a full refund and are directed to apply for this prior to September 15.

Real Estate Regulatory Authority Chief Executive Marwan bin Ghalita said on Tuesday the agency was working towards establishing a plan, which is being worked around to better monitoring the Dubai Lagoons project.

An auditor has been appointed to thoroughly audit the company's accounts and an appraiser shall be appointed to examine construction works.

Schon has also confirmed that the agreement with the original contractors Powerline Gulf has been renegotiated to include the first two zones and construction is due resume in the coming weeks. The first zone is now set for completion within 13 months and the second zone within 18 months as of July 28.

Negotiations with another leading contractor to handle the remaining zones are currently being finalised of which official appointments by Schon will be announced shortly.

Rera has urged investors to report whatever violations they come across, particularly those related to escrow accounts Law No.8. Should they get involved in disputes or litigations vis-à-vis real estate development, investment and freehold, they are advised to approach the property court. They may also seek compensation and enforcement of obligations therein, Ghalita said.