NewsBuyers in La Hoya Bay asked to resume payments
Khoie Properties, the developer of La Hoya Bay in Ras al Khaimah, has asked buyers to resume payments in order to continue the construction works. In return, Khoie offers a 25-35 per cent price reduction on the unfinished apartments.
La Hoya Bay was originally scheduled for completion in 2008, but the project has suffered from jailed CEOs, involvements from the government and insolvency. More than 700 buyers paid an initial fee of 20-30 per cent in the project, which Khoie hired Arabtec to construct.
Frank Khoie, former CEO of Khoie Properties, now chairman, told The National many buyers are likely to walk away from their deposits, rather than paying the remaining 70 per cent.
“The financing people have a simple question, show us proof that if you build it buyers will come and pay the 70 per cent,”
said Frank Khoie. Investors have openly asked where the inital Dh200m have gone. Khoie responds that every single dirham has gone directly into project-related costs, but investors are still worried as little or no progess has been made and are questioning this payment as well. One anonymous investor said ready properties in the resell market are sold for half the original price of La Hoya Bay, adding:
“Who will invest in a speculative off-plan project at more than the market rate?”
Frank Khoie says he’s determined to finish what he has started.
