RAS AL KHAIMAH, UAE: Arabtec has signed an agreement to build Ras Al Khaimah's La Hoya Bay project, valued at $680 million, over nearly five years, the Dubai-based construction giant said on Monday.
The project, to be built in phases, is expected to be complete in 54 months, said the UAE's biggest builder, whose shares climbed 1.2 percent after the deal.
The first phase of the project, valued at $245.1 million, will start immediately, said Arabtec in a statement posted on the Dubai bourse website.
Riad Kamal, chairman of Arabtec, said he was "very pleased" to reach an agreement with Khoie Properties, the parent firm of La Hoya Bay. The project will add to the company's long list of projects developed and executed in the UAE, he added.
Frank Khoie, Chairman of Khoie Properties, said the project would help Ras Al Khaimah in its bid to become a destination of quality waterfront and resort environment living.
Earlier this month, Khoie said the construction work on the project would resume soon, adding that he was determined to hand over the waterfront project by December next year and said fresh funding would be in place shortly.
Work on the project was suspended after Khoie's arrest in January 2009 for check fraud. He received a three-year jail term for bouncing a $15.6 million check written to Ras Al Khaimah Investment Authority (Rakia).
The La Hoya Bay project, located on Marjan Island, is Ras Al Khaimah's largest real estate development. Designed in a series of curves, the reclaimed island comprises more than 1,400 apartments in the seven buildings. Other phases of the project include offices and shops.
"We are very bullish about Marjan Island in general and our La Hoya Bay project in particular, and are confident that from September onwards, our sales and re-sales will take off," Khoie said.
Khoie Properties has already received some $81.6 million in down payments from its 800 investors, half of whom are based in the UK. Around $19.6 million has been paid to Rakia for one plot of land, which houses three finished residential buildings of seven planned for the site.
Khoie earlier said it had signed contractors Dutch Foundation and Progressive Construction to recommence work on the site and said sales operations for the project had resumed.
The La Hoya Bay project, comprising five mixed-use elements apart from the external landscaping works, include La Hoya Residences with seven residential buildings and recreational facilities.
Other elements of the project are La Hoya Bay Business Village: comprising offices with free zone status, apartments and retail space; a European Village with 12 residential buildings, retail space and a 200-room hotel; La Hoya Bay Autumn Leaves, comprising premium serviced apartments with medical facilities, a private yacht club and a community center for the semi-retired; and La Hoya Bay Bermuda Hotel and Apartments: comprising 800 quality condominiums and a 300-room hotel and yacht club.
By Walid Mazi
© Arab News 2010
