UNEC wins $109m Schon Business Park contract

Schon Properties has awarded a Dh400 million ($109 million) contract to United Engineering Construction (UNEC) for construction of its Schon Business Park.

The project will provide much needed flexible commercial spaces for start-up businesses or multinational companies relocating to Dubai, said a company official.

The Business Park has been designed to provide a unique and self-contained environment for its occupants, both owners and tenants.

“Ideal both as an investment, whereby space can be bought and then leased out of for businesses who want to own their own premises, the Park offers complete flexibility, competitive prices and state-of-art facilities and amenities,” said Asher H. Schon, vice president at Schon Properties.

“Businesses and investors can choose from a variety of spaces, in differing stages of preparation, up to and including turnkey spaces,” he noted.

According to Schon, the decision to partner with Unec was based on the construction firm’s impressive track record and portfolio of projects, including Tameer Palace, Dunes Village and Phase II of the Dubai Silicon Oasis.

Unec will start the construction work this month and will complete it in the next 18 months, said a top Unec official.

“Schön Properties has managed to position itself as one of the leading property developers in such a short period of time. We are excited to be working with Schon and are determined to provide the same superior services we have extended to all our clients,” said Abdul Haleem Muwahid, Unec managing director.

Unec will be responsible for the construction of a massive commercial-office complex consisting of shell and core retail and office spaces covering a total of 500,000 sq ft.

Total build area is a little more than 1,146,888 sq ft. The deal includes construction work on the basements, superstructure, MEP, as well as hard and soft landscaping.

TradeArabia

Schön Properties signs AED 1.171 Bn contract with Belhasa for Dubai Lagoon

Schön Properties, developers of the AED 3 Billion Dubai Lagoon Development, has signed an AED 1.171 billion contract with Belhasa Engineering and Contracting Company LLC (BHECC), to handle the construction of zones 3 and 6 of the exclusive mixed-use project.

Site work is scheduled to begin in October 2008, with a projected completion date between the end of 2010 and beginning of 2011. BECC’s remit will include all civil, architectural, construction and MEP works as well as air conditioning and service facilities, for a total of 17 buildings.

Asher H. Schön, Vice President of Schön Properties, expressed his confidence in the newly appointed contractors, saying,

“We have been in negotiations with a number of leading contractors for these next zones, but Belhasa Contracting and Engineering Company really stood out with a very impressive track record and highly professional attitude towards our requirements. We are looking forward to moving ahead on the project and working closely with BHECC.”

BHECC General Manager, A.G.Abdul Azeem, commented on the deal, “The Dubai Lagoon is a very interesting project and one that we feel more than equipped to handle with our sturdy background in large-scale development on many varied projects. Building the skyline of new Dubai and delivering fantastic end-products to customers are two key drivers in our decision to sign with Schön Properties.

With a sterling reputation in the market, BHECC is one of Dubai’s larger construction companies, and has undertaken a wide range of construction projects comprising - 5 star Hotels, Mosques, Multi-storey residential complexes, buildings for governmental institutions, shopping malls, multipurpose indoor sports halls, auditoriums, schools and office blocks. Some of BHECC projects have included construction of 200 residential units in the Green Community, 10 office blocks as well as the 48 storey Salam Tower in Dubai Media City, Movenpick Hotel (Holiday Inn) in Oud Metha and three, 50 storey mixed-used buildings in Cluster-X of Jumeirah Lake Towers, among numerous other large-scale projects.

The announcement follows recent news that Powerline Gulf has been maintained on the first 2 zones only, with site work for these zones currently mobilizing to resume construction.

Schön Properties affirms refunds

Schön Properties, developer of the Dhs3bn Dubai Lagoon project, has confirmed that full refunds will be given to all investors that purchased units scheduled for completion by December 2007.

The refund policy has been extended by Schön as an act of goodwill after confusion amongst some investors in regards to the project phases and revised completion dates.

Delays in completion of Dubai Lagoon have been the direct result of unanticipated civic and transportation infrastructure alterations, which have set back construction and produced scheduling issues.

“We at Schön Properties applaud and fully support the efforts of RTA and other government agencies to make Dubai a better place and we have re-designed our project to accommodate mandatory infrastructure developments imposed subsequent to the launch of the Dubai Lagoon,” said Nasir Husain, Co-Chairman of Schön Properties.

Schön has been in discussions with RERA to clarify the situation and reach a fair solution for all parties. Whilst not common practice in the UAE, the revised refund policy was approved by Schön Board of Directors during a board meeting held on Tuesday 19th August, to accommodate investors and demonstrate good faith. Investors, who purchased units with a completion date of December 2007, are eligible for a full refund and are directed to apply for this prior to September 15th 2008.

In a recent statement about Schön Properties and the Dubai Lagoon, Marwan Bin Ghalaita, CEO of RERA, characterized the objections of some investors as ‘a misunderstanding’.

He said, ‘Schön [Properties] is a registered developer with us and they have an open trust account and all the money from the Dubai Lagoon [project] is in trust account handled by the Land Department and RERA. Furthermore, RERA issued a press release earlier this week dismissing reports that the project had been cancelled and pledging continued involvement and monitoring of construction works.

Schön has also confirmed that the agreement with the original contractors Powerline Gulf has been renegotiated to include the first two zones and construction is due resume in the coming weeks.

The first zone is now set for completion within 13 months and the second zone is set for completion within 18 months as of July 28th. Negotiations with another leading contractor to handle the remaining zones are currently being finalised of which official appointments by Schön will be announced shortly.

“While certain investors are understandably frustrated and upset by the delays, the vast majority have demonstrated great understanding and patience and have expressed confidence in Schön Properties and support for the Dubai Lagoon project. It is not in the best interest of any parties involved with the project, including developers to delay construction, as material costs are exponentially rising. Therefore we are aiming to deliver the project in the timeliest manner given the unforeseen circumstances,” concluded Husain.

AME Info/Press release