Khoie announces La Hoya Bay funding plan

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Khoie Properties, the company behind the La Hoya Bay development in Ras Al Khaimah, has announced its intention to place up to 50 million shares at $10 each in a bid to raise funds for the project.

The Khoie Group, which has a $1.1bn property and land bank portfolio, said the proceeds of the placing will be used to fund the construction of La Hoya Bay and in part covering the balance of payment on its plots.

Phase one of La Hoya Bay, the 1,150,000 sq ft project is expected to cost between $110-$130m to develop La Hoya Bay Residence. Khoie Properties' share of this development cost is expected to be 50 percent.

In return for building the phase one of La Hoya Bay, including the Marinas and sea view restaurant, additional plots will be released to JV partner as part of the conditional development agreement with the new shareholder.

The La Hoya Bay project is planned resort, residential and commercial scheme comprising 3,100 new  apartments and 415,000 sq ft of commercial accommodation.

It is a major part of the 27 million sq ft Marjan Island area, close to the Al Hamra Village in Ras Al Khaimah.

Khoie Group said the placing proceeds will enable it to "exploit the potential of the La Hoya Bay site without the need to increase debt leverage on the Group's balance sheet".

It added that the placing will allow the company to use existing resources to fund other developments and major projects.

Commenting on the placing, Frank Khoie, Khoie Properties' chief executive, said: "The development of La Hoya Bay represents a landmark project in Marjan Island, providing us with an opportunity to participate in one of Ras Al Khaimah's most exciting long-term real estate schemes and to utilise our extensive experience in developing resort complex on this beautiful man-made Island.

"The proceeds from the Placing will allow Khoie Properties to exploit the potential of the development and create value for shareholders without the need to increase the debt leverage on the Group's balance sheet, whilst seeking to ensure the Company has the financial flexibility to deliver its other projects in the pipeline."

Related:
Companies
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

Posted by: George

Anyone has an update on La Hoya Bay?
Khoie keeps on saying that the project is on hold based on the lack of basic infrastructure for the Island while other projects are already built and fully functional, like the Al Marjan Resort & Spa or DoubleTree Hotel ?

Posted by: Robert Dewey

Hi Linda - Have you any more information on La Hoya ?. We put a deposit down on an office and I am unable to get any information from anyone on this matter. There should be some way that we can get our money back or he should be forced to hand the project and the land to another developer.
Robert.

Posted by: Linda Mallett

How long can this go on if we do not act on this soon he will get away with this, as most of the investers our uk we should be able to get help ,as others have done in Spain Greece & other country's He has no respect for any of his investers ,
I think government of dubai should be informed about the treatment of uk citizen ,s & the mp .s in uk should be lobbied in the House of Lords

Posted by: Sal Patel

...well at least he's trying...unlike many other developers who fled the country and disappeared without trace!!

Posted by: Ravi Johal

As another purchaser of the La Hoya Bay development, we have been hearing countless stories of how Khoie Properties have endeavoured to ensure that the development is built including asking the purchasers to sign a variation to their existing contracts and pay yet even more money to Khoie Properties to get the development built.

Since 2008 there has been no credible explanation as to where the deposit money paid by the purchasers has gone, and in 2013 this project has not moved any further forward. I would urge all that did put money into this project to contact the other buyers and form a consortium to take Frank Khoie and Khoie Properties to court for breach of contract.

I would also ask any UAE lawyers reading this article who think we have a case to approach us with a possible way to take this matter to the courts in UAE.

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Finance talk with RAKBANK

Finance talk with RAKBANK

StartUp sat down with RAKBANK’s head of personal banking, Ian...

Tips from the top: Hisham Al Gurg

Tips from the top: Hisham Al Gurg

High profile investor and entrepreneur Hisham Al Gurg discusses...

1
The hubsters' ecosystem

The hubsters' ecosystem

Tamara Pupic visits Impact Hub Dubai, the first local branch...

Most Discussed