Xanadu Acquires 2.33 million Square Feet Dubai Lagoon from Schon
In one of the largest property acquisitions in recent times, Xanadu Real Estate Development acquires 2.33 Million Square Feet Dubai Lagoon development at Dubai Investment Park
With the 2.33M Square Feet acquisition, Xanadu Real Estate Development will develop the residential component of Dubai Lagoon
The move paves the way for the development of Dubai Lagoon and other projects on the same site by multiple developers
The deal helps to create synergies amongst developers that will help the projects to be fast-tracked for delivery before the Expo 2020 mega event
The transaction marks a major milestone in Dubai real estate market that will boost investor confidence
For Immediate Release
Date: Dubai, February, 2017
Schon Properties, a major UAE property developer, today announces the transfer of 2.33 Million Square Feet Developments at Dubai Lagoon to Xanadu Real Estate Development LLC – a landmark move in the overall development of the Dh7 billion master-planned mixed-use project.
The agreement involves the development of 2.33 million square feet development of three phases of Dubai Lagoon, including Rowan, Lilly and, Winterberry developments. The announcement marks a major turning point in the history of Dubai Lagoon – which will now be developed by Xanadu Real Estate Development – a Dubai-based private developer.
“This is a historic moment for all of us as well as the real estate fraternity and the deal signifies the strength of partnership in developing large projects,” Noorul Asif, Chief Operating Officer of Schon Properties, said. “This historic 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 the buyers. We would like to thank all stakeholders, RERA and Dubai Land Department officials for their continued support towards the sector and the project to ensure completion happens. Their approval was mandatory on the deal for us to allow for the acquisition of the projects.”
Due to the site’s close proximity to the Dubai Expo 2020 site and the new metro line – Expo Link passing by the site, the development’s market price 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 the buyers in time – that will boost investor confidence in real estate.
Noorul Asif says, the deal will enable Schon Properties to focus on developing iSuites – a massive home-grown hospitality portfolio that will see the development of 2,550 hotel apartments. Additionally, Schon has committed its focus towards hospitality, and this further proves their commitment toward the sector.