Schon Properties transferred 2.33 million square feet of development at Dubai Lagoon to Xanadu Real Estate Development LLC, it was announced today. The move is part of the overall development of the Dh7 billion master-planned mixed-use project.
The agreement involves the development of three phases of Dubai Lagoon, including Rowan, Lilly and, Winterberry developments. Dubai Lagoon will now be developed by Xanadu Real Estate Development, a Dubai-based private developer.
“The deal signifies the strength of partnership in developing large projects,” said Noorul Asif, Chief Operating Officer of Schon Properties. “This agreement will ensure Xanadu Real Estate Development will deliver Dubai Lagoon. We are confident with Xanadu’s track record.”
Due to the proximity to the Dubai Expo 2020 site and the new metro line, the development’s market price started to gain. As a result, Xanadu 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 development in project execution where multiple investors and developers come together to develop different components of the master-planned community.
Noorul Asif says, the deal will enable Schon Properties to focus on developing iSuites – a home-grown hospitality portfolio that will see the development of 2,550 hotel apartments. Additionally, Schon has committed its focus towards hospitality.
Schon Properties has an 8 million square feet development portfolio valued at Dh7 billion.
Xanadu from PGS Gulf Contracting, established in 2010, was started by two engineers, Adel Al Breiki and Cenk Yabas. They have more than 40 years of global experience in property development, construction, sales and asset management.
The company has residential developments worth more than Dh8 billion.