The Project

The La Hoya Bay project is located on Marjan Island, Ras Al Khaimah and has a land area of approximately 1,500,000 sqft comprising of the following sectors:

• Sector a: La Hoya Residences: comprising seven residential buildings and recreational facilities
• Sector b: La Hoya Bay Business Village: comprising offices with Free Zone status, apartments and retail – space
• Sector c: La Hoya Bay Regency, a European Village: with 12 nos. residential buildings, retail
  and a 200 room hotel
• Sector d: La Hoya Bay Autumn Leaves: premium service apartments with medical facilities, private Yacht Club and community center for the semi-retired
• Sector e: La Hoya Bay Bermuda Hotel and Apartments: a 800 quality condominium apartments, and a 300 room hotel and Yacht Club.
• External Works: Include landscaping, three marinas and swimming pools.

The gross floors built up area will be around 5,500,000 ft2.

Mr. Frank Khoie Chairman of Khoie Properties stated that he is very happy to reach this agreement with Arabtec Construction for building this prestigious project in Ras Al Khaimah which will be of great benefit to enhance the development of Ras Al Khaimah as a destination of quality waterfront and resort environment living and expressed confidence in the ability of Arabtec to deliver the works to the highest standard and in a timely manner.

Mr Riad Kamal Chairman of Arabtec Construction said that Arabtec is very pleased to reach such an agreement with Khoie Properties for this prestigious project which will add to its long list of iconic projects developed and executed in the U.A.E.

The Main Consultant for the entire La Hoya Bay is Paul DeVylder – Architect JLT (PDA), who is leading all design and engineering services. Commercial Management Services will be undertaken by Northcroft Middle East, part of the Northcroft Group, one of the oldest Chartered Quantity Surveying Companies in the world, established in 1840 and headquartered in London.

The cancellations were sent on behalf of developers that have completed 80% or more of a project, which can be made due to the Executive Council Resolution 6 of 2010.

The resolution has allowed developers to repossess properties and retain 40% of their value. The seized properties will then be auctioned by the Land Department and the funds returned to the developer. Any surpuss will be transferred to the original buyer.

This step has been taken because of buyers who have failed to fullfill their contracts. According to the assistant director general of the Dubai Land Dept., Mohammed Sultan Thani, most buyers accept the cancellation, adding that

“It’s mostly happening through mutual agreement … only a few people are making problems.”

Commenting on the handover, Mohammed Nimer, CEO of MAG Group Property Development, said: “We have maintained a consistent vision, communicating transparently. We have stood by our strategy through thick and thin which has underscored our commitment to our customers and our confidence in delivering our promise.”

Almost 90% of MAG 218 tower was sold out within months of its 2006 launch, with many investors initially paying an average of AED750,000 – 850,000 for a one-bedroom apartment. Today, despite falling prices over the past two years, the apartments have still appreciated, on average by at least 10%. Indeed competitive rental returns can be achieved due to the realistic original selling price.

Due to MAG Group’s strategic pricing, more than 70% of the owners are end users clearly keeping speculators at bay. The typical profile of residents consists of young professionals in their early thirties and to date MAG Group has not received any cancellations whatsoever.

“So far we have not received any notices’ of cancellation, which in the current climate is quite remarkable. However it does highlight the sustainable demand for quality mid-priced accommodation,” said Nimer.

In terms of service fees, again through MAGme the property management arm of MAG Group, rates are very competitive at less than AED10 per square foot per annum.

“This which compares favourably with other developments in the vicinity,” said Nimer.

Full-floor show-apartments located on the first floor of the MAG 218 Tower were opened in June 2008, so that owners could check out the quality of the interior finish, plus other interior fittings such as lights, built-in kitchen units & white goods, wardrobes and bathroom fixtures.

“Frequent online photo-updates were also posted on to the MAG Group website to further reassure overseas investors,” added Nimer.

The tower, which comprises 333 one-bedroom apartments and 222 two-bedroom apartments and six retail outlets, comes complete with 572 covered car parking spaces and an outdoor Olympic sized swimming pool. The top five floors feature a full glass exterior, which afford spectacular panoramic views of the Marina, Palm Jumeirah and beyond.

A dedicated recreational facilities and community floor houses a state-of-the-art gym, event and dining hall, TV room and an outdoor terrace.

The residential tower is strategically located close to all of the facilities in Dubai Marina and only five minutes’ walk from Dubai’s Internet City and Media City. The tower also forms an integral part of MAG Group’s development strategy to construct competitively priced buildings aimed at the mid-range market and appealing to Dubai’s middle income families.

Imre Solt

The authority has started notifying investors who have defaulted that if they fail to make their outstanding payments within two weeks that 40 per cent of any money they have paid so far will be confiscated, and the properties will be sold at auction.

The confiscated money, along with any profits from the auctions, will be handed over to the developers. The rule applies to projects that are 80 per cent or more complete.

The move, according to Mohammed Sultan Thani, the department’s assistant director general, is intended to spur the completion of unfinished projects.

“The idea is to see what we can do before the property is cancelled,” he said.

During the property boom, many developers depended on the off-plan model, whereby a property is sold before building work starts to provide finance for construction. Many analysts say the model fuels speculative buying and inflates prices.

The National

Arzanah, Capitala’s flagship project, is a 1.4 million square metre development encompassing residential, retail, commercial, sports and leisure components. Strategically located in the Sheikh Zayed Grand Mosque District on Abu Dhabi Island, Arzanah will offer a unique active urban lifestyle for both residents and the community at large.
Situated on the north eastern corner of Arzanah on 38,000 square metres of prime land, Rihan Heights includes five luxurious residential towers with a total of 854 apartments and 14 stunning villas on the site’s perimeter. The buildings are surrounded by luxuriant gardens and offer a range of recreational features including swimming pool, children’s playground, gym and fitness suite, clubhouse and state of the art security and management systems.

Construction on Rihan Heights, which began in late 2008, is well underway. The 20th storey of the tallest tower, which when complete will consist of 32 storeys, is expected to be completed by end of April and the facades for all five towers to be in place by late Q4 this year.

Carlos Obeid, Chairman of Capitala, said,

“Today there are 2000 construction workers on Rihan Heights site and this number will increase to 2500 in the next quarter, a fivefold increase within a single year. We are pleased with the construction progress so far and we are now focussing all our efforts to complete and deliver these premium finished residences.”

He added,

“We have also recently completed Rihan Heights show homes on the 1st floor of tower B and invite all our existing investors and potential customers to visit them. The show homes, which include the two and three-bedroom apartments, showcase the layout, finishes and expected quality for this premium residential development. They also highlight the unobstructed views onto the pristine beachfront and the spectacular Sheikh Zayed Grand Mosque.”

The project consists of four 22-storeys residential towers with 684 units in all.

The project is intended for middle-income professionals and will be located at the entry to Reem Island about 300 metres from Abu Dhabi Island.

The development spans a built-up area of 156,800 square metres and consists of one-, two- and three-bedroom apartments and eight exclusive water villas.

The waterfront Carina Views towers will be designed for middle-income professionals.

Khaleel I Al Abdullah, Chief Executive Officer at NREC, said:

“Even with the economic crisis, accommodation requirements still need to be addressed in Abu Dhabi. We decided to enter the market and target mid-income professionals to fill a gap that was very much there. We are confident in Abu Dhabi and the UAE and Carina Views is the first of many UAE projects we are embarking on.”

NREC owns and manages properties and assets throughout Kuwait, the Middle East and North Africa. Carina Views is NREC’s flagship development for Abu Dhabi and situated on the master development of Al Reem Island- Najmat, Abu Dhabi.

NREC is listed on the Kuwait Stock Exchange since 1984. Founded with a capital of KWD5 million (Dh63.6m), NREC has assets and capital now exceeding KD589m and KD81m.

Based in Kuwait, NREC houses subsidiaries, entities and developments that are spread throughout the region, including UAE, Egypt, Jordan, Lebanon, Iraq, Djibouti and Libya.

Prices

According to a sales manager of Carina Views, the prices of Tower 1 are as follows:

1st floor AED 1,169/ft2 – District View – upto 7th floor AED 1,198/ft2
1st floor AED 1,230/ft2 – Full Reem View upto 7th floor AED 1,261/ft2
1st floor AED 1,279/ft2 – Ful Sea View – upto 7th floor AED 1,311/ft2

4 out of 8 Water Villas
From AED 10,500,000 (6,372 ft2) – AED 11,312,000 (6,867 ft2) incl. garden.

Payment plan
5% on signing Reservation Agreement
5% 3 months after signing RA
5% Construction milestone A (after 6 months)
10% Construction milestone B (after 12 months)
75% Final Payment – on completion

Emirates Business

Nakheel recently received US$9bn (Dh33bn) from the Dubai Government to revive stalled projects and settle debt, and have now announced more options to investors in long-term projects, such as Palm Jebel Ali.

Options

The options outlined by Nakheel are:

• Staying in the project
• Swapping into near-term projects
• Consolidating into other owned properties
• Consolidating into a third-party property
• Receiving credit that will be useable against any property at anytime and redeemable in five years

History

The debate began late 2009 when Nakheel offered buyers of waterfront homes on Palm Jebel Ali alternatives in Jumeirah Heights and Al Furjan. The buyers declined these offers, saying the options were “inadequate and not acceptable”, and said they would hire a law firm to represent them.

Property prices for a villa on Palm Jebel Ali plunged from  $4.35m to $2.45m in just two months when the financial crisis hit the artifical island in second half of 2008. The project was launched in 2003, but came to a halt in 2008 and on April 10 this year investors will meet in London to sketch up a plan how to put pressure on the project.

The National

Emaar recently announced that Burj 29 Boulevard, situated close to Burj Khalifa, will be delayed two years, while Claren One, also scheduled for completion in February 2010, will be delayed one year.

More than 240 residential units were sold as part of the US$500 million (Dh1.83 billion) project at the peak of Dubai’s property boom between 2007 and 2008, when a beach-front villa on Nakheel’s Palm Jumeirah could fetch about Dh16m.

James Wilson, the managing director of Emerald Palace Group and a former chief executive of Nakheel, said there had been “zero” defaults among customers, whose homes were now valued at between Dh3,500 and Dh5,000 per square foot.

This was partly due to the Kempinski Rental Programme, in which investors who intend to use their properties for only a few weeks a year can rent them through Kempinski for the rest of the year while taking 75 per cent of the profit. Mr Wilson said about 90 per cent of buyers had opted for the rental scheme.

“That’s our success, it’s all end-users. The only type of speculation, and that’s the wrong word to use, is that they get a return on investment”, he said.

The National

Media reported angry scenes at the meeting, as executives repeated what Frank Khoie himself said on Thursday from his prison cell. Khoie has told investors they can claim refund within 90 days and that construction then will commence. Investors, on the other hand, were curious to know how they can apply for a refund and how Khoie will be able to pay.

“Is there any substance to him saying he will be in a position to refund investors? If he can afford to refund investors, why hasn’t he settled his debt and got himself out of jail?”

Ashley Merry of the La Hoya Bay Investors Group said to 7Days. She believed many investors would want a refund but they were unsure how this could happen, as Khoie left no information about how the refund or the process will be.