Schon Properties, a major property developer, and Al Hamad Group – a leading construction company in the GCC – announce a joint venture to develop iSuites – a massive Dh3.2 billion (US$870 million) home-grown hospitality portfolio that will see the development of 2,550 hotel apartments at a single site within Dubai Investment Park – close to the World Expo 2020 venue.
Al Hamad Group is investing equity to finance the construction of the project and acquire a substantial stake in the 2,550 unit development while Schon Properties will retain a substantial number of units for recurring income, while some inventory is offered to select investors for sale. Al Hamad Group will be responsible for construction via their contracting arm, Dubai Civil Engineering. iSuites is being jointly developed by both companies and will be managed by Schon Properties.
The entire complex includes 21 buildings – comprising 2,550 hotel suites, 52 restaurants and outdoor cafes, 125,000 square feet 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.
The branded hotel apartments will be managed by international hotel operators to offer greater comfort to visitors. Part of the iSuites inventories will be offered to investors that offers a high return on investment. Sales of the iSuites are currently on as investors and buyers could now purchase a hotel suite or a service apartment that will be managed by international branded chain hotel operators and offers buyers a higher income of 12-15 per cent per cent.
Danial H. Schon, Founder and President of Schon Properties, says, “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.
“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.
“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.”