Schon Properties' land plots, escrow account seized

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Schon Properties land plots, escrow account seized

Dubai - The step is aimed at protecting the rights of investors in light of Schon Properties' actions of exploiting investors.

By Waheed Abbas

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Published: Fri 3 Aug 2018, 4:42 PM

In a landmark decision to save interests and funds of investors, authorities in Dubai seized assets and Escrow funds of a major property developer on Thursday after it failed to deposit investors' money in Escrow (guarantee) account.
The Dubai Land Department (DLD) said it had issued a decision to seized properties and plots of Schon Properties as well as funds deposited in Escrow account until the Dubai Public Prosecution and Dubai Courts complete legal procedures to recover investors' rights.
The move will bring in transparency and improve investment environment in the emirate as well as ensure that rights of all the parties are saved.
The developer was targeting mid-market buyers in affordable housing segment. The company claimed in a statement in October 2017 that it had 8 million square feet development, valued at Dh7 billion. Also claiming to have more than 3,000 customers, it claimed to have delivered more than 1.6 million square feet of development by October 2016.
In September last year, the Dubai-based developer announced that it had sold out the first phase of major hospitality project iSuites at Dubai Investment Park. It announced its entry into Jordan also in October 2017.
Schon Properties could not immediately be reached for comments despite repeated calls.
The Dubai Land Department called on investors to deposit their money in Escrow accounts and transfer payments to developers as per the percentage of completion in the projects. It stressed that this is the only way investors can preserve their money and ensure their rights are protected. Buyers are not advised to make payments to developers outside Escrow accounts.
waheedabbas@khaleejtimes.com


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