Schon sells out Phase I of $871m Dubai project

Schon Properties, a major UAE-based developer, has sold out i3 - the Dh3.2-billion ($871 million) first phase of its mega hospitality project, iSuites at Dubai Investment Park, close to Dubai South, and the Dubai Expo site. The i3 is a complex of three mid-rise buildings, offering 292 high-end fully furnished hotel apartments with a total built-up area of over 220,000 sq ft - that have been snapped up by international investors further expanding Schon's reach and Dubai's appeal beyond the legacy source markets of the Middle East and Indian subcontinent, said the developer in a statement. Today both sub-Saharan Africa and the Far East are established and growing source markets with close to 30 per cent of total sales from these regions, it stated. Schon pointed out that Dubai was an increasingly attractive tourist destination, supported by continued investment in the tourism infrastructure, and hosting of large scale global events. The growth in visitor numbers is driving further investment in hotel accommodation expansion. The number of visitors is expected to grow from 15 million in 2016 to 25 million in 2020, it stated. The iSuites' exceptional location, adjacent to the Dubai Expo 2020, a short drive to the Al Maktoum Airport transportation hub as well as Dubai Parks & Resorts attractions, and served by a station on the planned Dubai metro extension has attracted many international hotel operators looking to establish a presence for their brands. The entire complex includes 21 mid-rise buildings - each having 8 floors not including basement floors - around a manmade swimmable lagoon, the first-of-its-kind in Dubai and a retail promenade offering visitors a plethora of shopping, entertainment and dining options, said the Emirati developer. On the successful sale, Danial Schon, the president of Schon Properties, said: "Dubai is today a global tourist destination, with infrastructure and attractions that are second to none. With the relentless ambition it's known for, under the guidance of our wise rulers, and associated growth potential, the savvy investor is seeking to participate in this success story." Investing in a hotel apartment managed by the top international operators has been an added benefit to investors seeking superior returns, he added. Noorul Asif, the chief operating officer, said: "Although individual investment in hotel apartments by retail investors is a novel phenomenon, we are pleased to say that we have sold out i3 - the first phase of iSuites, within a short period of time." Long known for its ultra-luxury developments, Dubai recognises that the next leg of growth is going to come from the affordable segment as it appeals to wider audiences, offers more choice at multiple price points to its visitors and thus structurally protect the sector against cyclical fluctuations at home and abroad. "Positioning iSuites at 4 stars, addresses a gap in the market today. Tourists, especially families are looking for properties in convenient locations, with superior amenities at affordable prices. iSuites delivers and investors recognise that. With i3 sold out, investors are actively registering ahead of our next launch," added Asif.-