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Discuss this article (12 Comments)Rakeen appointed to take on $800m La Hoya Bay
by This email address is being protected from spam bots, you need Javascript enabled to view it on Wednesday, 02 September 2009
LA HOYA: An artist's impression of the $800m Ras al Khaimah project.
Rakeen, the government-owned real estate company in Ras Al Khaimah, has been named judicial custodian of Khoie Properties, troubled developer of the emirate’s $800m La Hoya Bay project.
"The Ras Al Khaimah court's decision to appoint Rakeen as custodian of Khoie Properties is a significant step that promotes and protects the welfare of investors and property buyers,” said Ras Al Khaimah Investment Authority (RAKIA) chief executive Khater Massaad.
Khoie Properties had become insolvent and defaulted on land payments, calling into question the future of La Hoya Bay, its main project in Ras Al Khaimah.
As a result, the RAKIA had asked the courts to bring Khoie Properties under judicial custodianship until the completion of La Hoya Bay, to ensure that the rights of investors were protected.
Rakeen is the master developer of Ras Al Khaimah's Al Marjan Island, the site of the planned development.
Around 800 investors, out of which half were from the UK, had already made a 30 percent down payment to Khoie.
Rakeen said those who have made the 30 percent down payment will only be required to pay the remaining 70 percent.
READERS' COMMENTS
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Al Hamra Village Vs La Hoya Bay
Posted by Deputy Dawg, Dubai, UAE on Sunday 18 October 2009 at 21:27 UAE time
When La Hoya Bay was launched surely it could be seen as a vain attempt to follow in the footsteps of Dubai for RAK to create thier own offshore development.
The difference is that Dubai has a lot more to offer than RAK and as such should not have embarked on such a large project as that, as they were surely never going to reach the dizzy heights of the Dubai PR Machine.
When I saw the project get launched, I couldnt help thinking that it was too much too late and that they would be lucky to get it off the ground. The same goes for Palm Diera and Palm Jebel Ali, when you already have one Palm you dont need two more and you certainly dont need another one an hours drive up the road!
I bought in Al Hamra and am hoping to get the keys to my Royal Breeze Apartment in 2Q10.
I paid Dhs 825k for a nice two bedder with a golf and lagoon view, not for an investment but for a weekend retreat away from the hustle and bustle of Dubai and it looks like they will be on track to deliver as promised.
Hats off to Al Hamra Village, the place looks fantastic and I cant wait to spend my weekends there but I really do feel sorry for those in La Hoya Bay, I may be wrong, but I really dont see much happening there for a good few years to come.
Sorry
Posted by Deputy Dawg, Dubai, UAE on Sunday 18 October 2009 at 21:27 UAE time
When La Hoya Bay was launched surely it could be seen as a vain attempt to follow in the footsteps of Dubai for RAK to create thier own offshore development.
The difference is that Dubai has a lot more to offer than RAK and as such should not have embarked on such a large project as that, as they were surely never going to reach the dizzy heights of the Dubai PR Machine.
When I saw the project get launched, I couldnt help thinking that it was too much too late and that they would be lucky to get it off the ground. The same goes for Palm Diera and Palm Jebel Ali, when you already have one Palm you dont need two more and you certainly dont need another one an hours drive up the road!
I bought in Al Hamra and am hoping to get the keys to my Royal Breeze Apartment in 2Q10.
I paid Dhs 825k for a nice two bedder with a golf and lagoon view, not for an investment but for a weekend retreat away from the hustle and bustle of Dubai and it looks like they will be on track to deliver as promised.
Hats off to Al Hamra Village, the place looks fantastic and I cant wait to spend my weekends there but I really do feel sorry for those in La Hoya Bay, I may be wrong, but I really dont see much happening there for a good few years to come.
Sorry
its all about the credit line
Posted by UKJane, dubai, uae on Tuesday 8 September 2009 at 10:31 UAE time
what bru said is fair point, so why would you buy offplan? i heard Rakeen are now doing 50-50 essentially offering a credit line for those who cant put 70-100% down immediately.
in any case, the fact that one developer is cleaning up another's mess in this climate is unheard of in the UAE. sure they probably wont do much construction on LHB until their own Bab al Bahr project next door is over first but like i said before, overall its good PR for RAK in general
Posted by UKJane, dubai, uae on Tuesday 8 September 2009 at 10:31 UAE time
what bru said is fair point, so why would you buy offplan? i heard Rakeen are now doing 50-50 essentially offering a credit line for those who cant put 70-100% down immediately.
in any case, the fact that one developer is cleaning up another's mess in this climate is unheard of in the UAE. sure they probably wont do much construction on LHB until their own Bab al Bahr project next door is over first but like i said before, overall its good PR for RAK in general
Rakeen are nice but the price is high
Posted by Bru, London, UK on Friday 4 September 2009 at 17:48 UAE time
It's clearly very nice of Rakeen/RAK Government to take over. But they're not as nice as some of you think - 30% has gone missing but Rakeen will only ask buyers for the remaining 70% - seems really nice. But in actual fact, the cost of construction has gone down considerably since people bought these properties AND Khoie were making a huge profit margin on them at the high price they were sold. So, the result is that Rakeen can do the full construction within the 70% you have to pay them.
Just a questions – isn’t it better for buyers to walk away from their purchase? If you’ve paid 30% and the price has gone down by more than 30% then you may as well buy something ready in Al Hamra Village where you can get excellent prices and it’s an almost completed master development. La Hoya Bay was sold at very high prices and the reality of the price now, esp for a development that is 1-2 years from completion, is much less than the price paid.
Posted by Bru, London, UK on Friday 4 September 2009 at 17:48 UAE time
It's clearly very nice of Rakeen/RAK Government to take over. But they're not as nice as some of you think - 30% has gone missing but Rakeen will only ask buyers for the remaining 70% - seems really nice. But in actual fact, the cost of construction has gone down considerably since people bought these properties AND Khoie were making a huge profit margin on them at the high price they were sold. So, the result is that Rakeen can do the full construction within the 70% you have to pay them.
Just a questions – isn’t it better for buyers to walk away from their purchase? If you’ve paid 30% and the price has gone down by more than 30% then you may as well buy something ready in Al Hamra Village where you can get excellent prices and it’s an almost completed master development. La Hoya Bay was sold at very high prices and the reality of the price now, esp for a development that is 1-2 years from completion, is much less than the price paid.
Be grateful Rakeen investor...
Posted by Tired of the greed, Dubai, UAE on Thursday 3 September 2009 at 17:22 UAE time
Hey Farhad, why should Rakeen give you discount or extend your payment plan of the final 30%????
You say they are good company and you claim your project on time so why should the company have to provide you leniancy when they are delivering on the promises of the contract you entered in to with them. You should be thankful that RAKEEN isnt facing issues like other developers and investors. The fact they are helping investors of another project doesnt justify that they should give you discount or delay payment on your project. If they are a good company then support them by fulfilling your obligations rather than squeeze more out of them if they are trying to do the best by saving a development in your backyard so that you dont loose value in your own property!!
Posted by Tired of the greed, Dubai, UAE on Thursday 3 September 2009 at 17:22 UAE time
Hey Farhad, why should Rakeen give you discount or extend your payment plan of the final 30%????
You say they are good company and you claim your project on time so why should the company have to provide you leniancy when they are delivering on the promises of the contract you entered in to with them. You should be thankful that RAKEEN isnt facing issues like other developers and investors. The fact they are helping investors of another project doesnt justify that they should give you discount or delay payment on your project. If they are a good company then support them by fulfilling your obligations rather than squeeze more out of them if they are trying to do the best by saving a development in your backyard so that you dont loose value in your own property!!
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