Thursday, 27 April 2017

@schonproperties , Al Hamad Group ink $871m #hospitality JV in #Dubai

Dubai-based property developer Schon Properties and Al Hamad Group, a leading construction company in the GCC, announced a joint venture to develop iSuites - a Dh3.2 billion ($871 million) hospitality development comprising 2,550 hotel apartments in Dubai Investment Park.

Danial Schon, president of Schon Properties, said: "Schon Properties is very excited about this venture we have embarked upon. With the location gaining more traction day by day, we believe this plot is the perfect location for hospitality going forward. We have found one of the most capable partners in Al Hamad Group, with their established construction track record of 45 years and history of building some of the tallest towers in the world."

Al Hamad Group is purchasing significant equity in the 2,550-unit development while Schon Properties will retain a substantial number of units, the remaining inventory will be offered to select investors for acquisition.

With over 45 years of expertise in construction, Al Hamad Group will be responsible for construction through its contracting arm, Dubai Civil Engineering. iSuites, is being jointly developed but will be managed by Schon Properties.

The entire complex includes 21 buildings - comprising 2,550 hotel suites, 52 restaurants and outdoor cafes, 125,000-sq-ft shopping mall, all surrounded by a manmade beach and a lagoon spread over 5 acres- all to be delivered before the historic Expo 2020 begins in the fourth quarter of 2020.

A yet to be disclosed, branded international hotel operator will manage hospitality services to offer greater comfort to guests.

The announcement of the joint venture has increased investor confidence in a 12-15 per cent, yielding investment opportunity to purchase a hotel suite or a service apartment that will be managed by international branded hotel chain operator.

Nashat Sahawneh, chairman of Al Hamad Contracting, said: "We are delighted to partner with Schon Properties to create a unique hospitality landmark catering to the Al Maktoum Airport and Expo 2020 sites, the highest expected tourist growth area in Dubai. We are proud to be part of this massive development and see a great potential in this partnership.

"Our 45 years' expertise with building some of the tallest towers in world and iconic projects will prove integral to delivering a landmark project in this crucial location. Schon's track record of developing such high profile projects will add to our experience, and we are excited for the prospects of this development. The development of iSuites is a historic move by Schon Properties as it will help support the Dubai Government's vision to create 140,000 hotel rooms for tourists and visitors to the emirate."

Al Hamad Contracting brings more than four decades of experience in constructing large projects. The company is based in the UAE with operational footprint across the GCC. The company has grown to become a group of large diversified businesses with more than 20 companies active in construction, real estate and industrial sectors.

"Additionally, Al Hamad expertise in hospitality with the fact that they have built, and now own and operate over seven hotels in the region, including Media Rotana Tecom and Hilton Jordan Gate, is very beneficial to the success of the iSuites project. The combination of Al Hamad's experience and Schon's multi-disciplinary experience will add to the Dubai landscape. Designed by Swiss Design Bureau, the suites offer smart stay concept and the building follows a modular design code. The design team's innovation is expected to create a top of the line development.

"This crucial partnership will ensure an active participation by Al Hamad Contracting - who are now our partner in development and holds a stake in the overall progress of the project and guarantee smooth construction, development and delivery with the units. This partnership now cements the deal and ensures on-time delivery and the best quality, said Danial Schon.

"We are also happy to announce that the piling and shoring works of the project has already been completed while the main construction will commence in January. Al Hamad's track record of on-time delivery over the last 45 years gives us the confidence that we will be ready to deliver the 2.6 million square feet significantly before the Dubai Expo 2020."

ISuites envisages smart modern living of functional and futuristic facilities. The full-serviced hotel apartments are targeting millennials interested in urban lifestyle hotel stays, small families coming to Dubai on a short- term corporate assignment or a pure family vacation. iSuites strategic location being next to the world's largest airport - Al Maktoum International Airport - assures high occupancy rates and secure income for investors.

The iSuites features over 52 restaurants and cafes boasting outdoor areas overlooking the Crystal Lagoon as part of a master-planned development. ISuites includes a 125,000-sq-ft retail promenade called the Laguna Centrale Mall. These include urban-themed cafes dedicated for entrepreneurs, kids play area's and nanny services available for all guests. Bank, retail, spas, supermarkets, pharmacies, healthcare facilities, and shopping are available at the Laguna Centrale Mall to give full service to all guests for the hotel development.

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