Controversial build gets back on track
Arabtec said yesterday that it has signed a memorandum of agreement for a $680 million deal to construct the controversial La Hoya Bay project in Ras Al Khaimah.
The construction giant said that the deal had been inked between Khoie Properties and Arabtec and that construction would take place in stages over the next 54 months.
The ambitious project, which will be built on Murjan Island on 1.5 million sq ft of land, has been beset with delays and legal disputes.
In September 2009, the RAK Court appointed Ras Al Khaimah Investment Authority (RAKIA) as "judicial custodian" of Khoie Properties until the completion of La Hoya Bay, after the developer was deemed to be insolvent.
However, in February this year developer Rakeen, which is owned by RAKIA, said it had been prevented taking over the project by Khoie Properties.
In the same month Khoie Properties said that it had filed a lawsuit against Rakeen and RAKIA, alleging 15 counts of fraud and extortion, and seeking dhs2 billion in real and punitive damages.
However a source at Rakeen told 7DAYS yesterday that all legal disputes between the firms have now been resolved, freeing the way for development deals to be signed.
In April this year CEO and chairman of Khoie Properties, Frank Khoie was released from prison after he was sentenced to three years for bouncing a guarantee cheque he issued to RAKIA.
In a message on the firm's web site Frank Khoie said that he is "bullish" about the La Hoya Bay Project and "deeply grateful" to everyone "who stood by us through this very difficult period". He said that the firm is determined to hand over the La Hoya Bay Residence and Business Village, aspects of the project, by December next year.
With many investors left seriously out of pocket as developments were put on hold over the last two years due to the financial crisis, some may take solace that projects in the UAE such as La Hoya Bay are back on track.
© 7Days 2010
