Progress on track for Schon Properties

Although market conditions have created more serious repercussions in the region than originally expected, Danial H Schon, Vice President of Schon Properties is forthright about the company's strong foundations, "Schon Properties has a solid financial position and our commitment will not waiver. There is no borrowing and zero liability both in Schon Properties and Schon Group, and this makes us one of the strongest real estate developers. A reduction in sales is inevitable for the short-term, but as the majority of our projects are 75% pre-sold, a slow down will not have a major impact on business activity".

The announcement has been made to allay fears of non-deliveries because of the current economic situation. The concern about Dubai's public and private sector debt escalation has worried everyone, especially property investors and end-users who fear the downturn may result in construction slowdown; or worse, abandonment of projects.

"We see the current situation as blessing in disguise, an opportunity to consolidate our current portfolio and concentrate on completion and delivery," continued Schon, "On Dubai Lagoon, works on zones 1 and 2 are in progress by Power Line Gulf Construction. The contractor for zones 3 and 6, Belhasa Engineering & Contracting Co, is currently mobilizing and permits have been obtained and essential contractor site facilities, such as offices and ablution blocks are being installed in preparation for the full main works activity at site, which will become more apparent shortly".

"We believe this correction is ultimately healthy for the Dubai real estate market as it slows the speed of growth, not stops it, which is beneficial for the long-term sustainability of the market. What differentiates Schon from other companies is our vision of providing a service to our community by offering affordable housing, which is practically non-existent in Dubai. With this vision, we foresee a bright future for our buyers, partners, and our city,"

he added.

Other projects including Schon Business Park, Schon Residences, Schon Suites and Libertas are also moving ahead as scheduled.

Spurred by a vision to build sustainable and financially accessible homes and communities throughout Dubai, Schon Properties was one of the first developers to offer a 7 year payment plan back when there was no mortgage market in the UAE. In light of the current situation the company is now revisiting ways in which to offer the most beneficial terms of purchase and also looking into collaborations with major banks to channel through their in-house mortgage advisory service.

"2008 has been a challenging year in more ways than one, but we are confident that the new year will bring many positive developments and are taking measures to reinforce our market presence by creating value-added services such as a facilities management division and the recently launched subsidiary company NOHCS Property Advisory," ended Schon.