Raking up the projects
Ras Al Khaimah has said that it is planning to spend heavily on improving infrastructure. The move may provide a big boost to RAK’s strained property sector.
February 17, 2010 4:58 by Aarti Nagraj
Meanwhile investors in the high-profile AED5 billion La Hoya Bay project are still waiting for the development to take form, as its previous developer Khoie Properties is involved in a with a legal battle with the Ras Al Khaimah Investment Authority (Rakia), which was awarded custody of the project by the court last year.
Earlier this month, Khoie filed an AED2 billion case against Rakia.
“By filing this lawsuit, Frank Khoie of Khoie Properties is acting like he is a victim,” Khater Massaad, CEO of Rakia, told Gulf News. “It’s very simple, he used cheques that bounced. He received AED280 million in investments and has used only AED20-AED30 million. Investors were relieved when Rakia took ownership of the project,” he said.
Rakeen, the real estate development arm of the RAK government, is currently handling the construction of the project, and said that it expects to complete the development in two and half years.
“From the time we can handle the project smoothly with no more obstacles from Khoie Properties, it should take 30 months,” Wahid Attalla, executive director of Rakeen told Emirates Business on Wednesday. “Investors are not looking for compensation for the delay; they simply want to get their units,” he said.