Dubai Land Department 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 & land plots registered to Schon Properties & its funds deposited in Escrow account.
The decision was made in order to secure the “rights of all investors & other 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 its website.
The group’s portfolio includes the Dubai Lagoon project in Dubai Investments Park (DIP) valued at around $1.9bn (AED7bn) before work dropped off after the 2008 financial crisis.
Nine years on saw the group announce in April 2017 a joint venture to develop the $870m iSuites at DIP – a development of 2,550 hotel apartments at Dubai Investment Park.
Comprising 21 buildings in total, the development also includes 52 restaurants and outdoor cafes, and a 11,600sqm shopping mall, all of which is surrounded by a man-made beach and lagoon, according to the company’s website.
DLD was quoted as saying, according to Gulf Business on Thursday, that the step is “designed to safeguard the rights of investors after Schon has exploited their funds and [did] not deposit them into the escrow account”.
Schon has been contacted for comment, but is yet to respond.