Schon offers refunds on delayed projects

Dubai: Schon Properties, developer of the Dh3 billion Dubai Lagoon project, has confirmed that full refunds will be given to all investors that purchased units scheduled for completion by December 2007.

The refund policy has been extended by Schon as an act of goodwill after confusion amongst some investors in regards to the project phases and revised completion dates, the company said in a statement yesterday.

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, the company said.

"We at Schon Properties applaud and fully support the efforts of RTA [Roads and Transport Authority] 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 Nasser Hussain, co-chairman of Schon Properties.

Schon has been in discussions with Real Estate Regulatory Authority (Rera) to clarify the situation and reach a fair solution for all parties. While not common practice in the UAE, the revised refund policy was approved by Schon board of directors during a board meeting held on Tuesday, to accommodate investors and 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.

In a recent statement about Schon Properties and the Dubai Lagoon, Marwan Bin Galita, CEO of Rera, characterised the objections of some investors as "a misunderstanding". He said, "Schon [Properties] is a registered developer with us and they have an open trust account and all the money from the Dubai Lagoon [project] is in trust account handled by the Land Department and Rera.

Rera issued a press release this week dismissing reports that the project had been cancelled and pledging continued involvement and monitoring of 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 is set for completion 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.

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.