Majority La Hoya Bay investors to accept refund

Construction on La Hoya Bay to start in 90 days.

Over 50 investors crowded into the Khoie Group headquarters in Al Quoz on Friday looking for an explanation from company representatives over claims to restart construction on the US $800 million (AED2.9 billion) La Hoya Bay site in Ras Al Khaimah within 90 days, according to Arabian Business.

This follows last week’s declaration by Frank Khoie, the jailed developer behind the stalled real estate project that any investor who wished to reclaim their deposit can do so along with a pledge to restart construction work on the site within 90 days.

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Meeting attendees heard brief statements from new administrative representative Rick Sailors and effective chief financial officer Abdul Karim Mohammed before bombarding them with questions.

The new CFO claimed that “everything [in terms of financing for the project] would be achieved,” but when asked by an investor who the planned project manager and main contractor for the development were, neither official was able to say.

An informal show of hands at the meeting revealed that the majority of investors intended to accept the offer of a refund immediately.

The next meeting with investors and RAK government officials is scheduled for March 17 in Ras Al Khaimah.

Set on Al Marjan Island, La Hoya Bay project was suspended following Khoie’s arrest in January last year.

The CEO, who had bought six plots of land worth $82.2 million from Ras Al Khaimah Investment Authority (Rakia), is currently serving a three-year jail term for bouncing a $15.6 million cheque written to the state-backed agency.

In October last year a court appointed Rakeen, the development arm of Rakia, as judicial custodian of the project in a bid to allow work to continue.