Khoie Properties denies insolvency

Khoie Properties has rubbished allegations of insolvency as previously reported, while reiterating its control over US $272 million (AED 1 billion) assets in land and $190 million receivables on account of its ownership of the $1.4 billion La Hoya Bay project in Ras Al Khaimah (RAK).

Earlier this month, an RAK court had ruled in favour of some 800 La Hoya Bay investors and appointed RAK-based property developer Rakeen as judicial custodian of Khoie Properties, the project’s original developer, until the completion of the project, which is situated on Al Marjan Island. Rakeen is the development arm of government owned Ras Al Khaimah Investment Authority (Rakia).

This followed news over Khoie Properties' insolvency earlier this year after it allegedly defaulted on land payments and failed to deliver the project in RAK. This prompted Rakia to appeal to the court requesting that Khoie Properties be brought under judicial custodianship until the completion of La Hoya Bay in order to protect the rights of the investors.

Wahid Attalla, executive director, Rakeen, had earlier said, "In light of the events that have transpired, our top priority right now is to reassure investors and protect their investments. As such, Rakeen has opened an escrow account as part of measures to promote transparency, and we are committed to completing the La Hoya Bay project and deliver it to the buyers."

But Khoie Properties has now come back saying it “agreed” to the appointment of Rakeen as project managers of the high profile waterfront development.

The company also said: “Rakeen’s involvement as the project manager and custodian of the escrow account, which was made possible by Khoie Properties' conditional consent to the court, is a strong indication of more positive developments in the construction of the La Hoya Bay project.”

It further added that it seeks to “clarify that accusations pertaining to insolvency are baseless” and that it still has the capacity to deliver La Hoya Bay project to investors.

La Hoya Bay comprises seven residential towers and over 1400 residential apartments along with three swimming pools, tennis courts, restaurants and shopping facilities nestled between white sand beaches and lush green landscapes. The Mediterranean-inspired La Hoya Bay Business Village offers freehold office spaces with free-zone licences.

Khoie Properties has said that company officials are positive of completing construction of the project, given that piling and foundation works have been completed for several buildings.