Dubai Land Department seizes Schon Properties' assets
The authority said the step was aimed at protecting stakeholder rights following Schon's "actions of exploiting investors"
Dubai Land Department (DLD) has issued an order to seize the assets of Dubai-based property developer Schon Properties.
In a statement on social media on Thursday, DLD said it has issued a decision to seize the properties and land plots registered to Schon Properties, and its funds deposited in an escrow account.
DLD was quoted as saying, according to Dubai Media Office, that the step was aimed at "protecting the rights of investors in light of Schon Properties’ actions of exploiting investors by refraining from depositing their money in [an] escrow account".
The decision was made to secure the rights of all of Schon's investors and other related parties until the Dubai Public Prosecution and Dubai Courts complete legal procedures.
Schon Properties describes itself as a “premium turnkey mixed-use property solutions that offer the best value and significant returns on investment”, according to its website.
The group’s portfolio includes the Dubai Lagoon project in Dubai Investments Park (DIP). The project is valued at around $1.9bn (AED7bn), although work dropped off after the 2008 financial crisis.
Nine years on, the group announced in April 2017 it would form a joint venture to develop the $870m (AED3.2bn) iSuites at DIP.
ISuites is planned as a development of 2,550 hotel apartments.
Comprising 21 buildings in total, the development also includes 52 restaurants and outdoor cafes, and a 11,600m2 shopping mall, all of which is surrounded by a man-made beach and lagoon, according to the company’s website.
Schon has been contacted for comment, but is yet to respond.