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."