New developer takes on Dubai Lagoon

Dubai Lagoon was Schon Properties' flagship project launched in Dubai Investment Park in 2005.

Schon Properties has announced the transfer of 2.33 million square feet at its Dubai Lagoon project to Xanadu Real Estate Development. This is a significant move in the development of the Dh7 billion master-planned mixed-use project.

The agreement involves the development of 2.33 million square feet of three phases of Dubai Lagoon, including Rowan, Lilly and Winterberry. Xanadu Real Estate Development is a Dubai-based private developer.

"The deal signifies the strength of partnership in developing large projects," Noorul Asif, chief operating officer of Schon Properties, said. "This 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 buyers."

Due to the site's close proximity to the Expo 2020 site and the new Metro line passing by it, 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.

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 buyers in time.

Asif said the deal would enable Schon Properties to focus on developing iSuites - a home-grown hospitality portfolio that will see the development of 2,550 hotel apartments in Dubai Investment Park.

- business@khaleejtimes.com