DUBAI LAND DEPART­MENT SEIZES LAND, REAL ES­TATE OF SCHON PROP­ER­TIES

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Dubai Land Depart­ment (DLD) has is­sued a de­ci­sion to seize the land, real es­tate and es­crow funds reg­is­tered to de­vel­oper Schon Prop­er­ties to safe­guard the rights of in­vestors.

The de­ci­sion was made to al­low the Pub­lic Pros­e­cu­tor’s Of­fice and the Dubai Courts time to com­plete le­gal pro­ce­dures against the real es­tate group, Dubai Me­dia Of­fice said.

“The step is aimed at pro­tect­ing the rights of in­vestors in light of Schon Prop­er­ties’ ac­tions of ex­ploit­ing in­vestors by re­frain­ing from de­posit­ing their money in es­crow ( guar­an­tee) ac­count,” a DLD state­ment read.

“The depart­ment ex­plained that the move is part of its ef­forts to ef­fec­tively con­trib­ute to sus­tain­ing a well-reg­u­lated and trans­par­ent in­vest­ment en­vi­ron­ment that pro­vides nec­es­sary pro­tec­tion for all par­ties and safe­guard their rights.”

Fur­ther­more, DLD called on in­vestors to de­posit funds into an es­crow ac­count un­der the emi­rate’s real es­tate laws, which see funds trans­ferred to the de­vel­oper in par­al­lel to the com­ple­tion rate of the pro­ject. Schon launched the Dh­s7bn ($1.9bn) Dubai La­goon pro­ject in Dubai In­vest­ments Park (DIP) in 2005 but work halted be­fore the prop­erty mar­ket col­lapsed in 2008.

In Fe­bru­ary 2017, the com­pany said it was trans­fer­ring half of the pro­ject to another de­vel­oper be­fore launch­ing the Dhs3.2bn ($870m) iSuites in DIP in June that year un­der a joint ven­ture.

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