Ras Al Khaimah's Al Marjan Island 70% sold

Seventy per cent of Al Marjan Island, the first man-made island in Ras Al Khaimah, has been sold and all developments on the island - including the much publicised La Hoya Bay - are ongoing, a senior official said.

"We only sell land and about 60-70 per cent of Al Marjan Island has been sold," Khater Massaad, CEO, RAK Investment Authority (Rakia), said, adding that the stalled projects by Khoie Properties have been progressing.

"Mr (Frank) Khoie has signed an agreement with Arabtec and we are happy with that," he said. "He is organising himself to resume construction and I hope he will construct the project and we wish him good luck."

"This (La Hoya Bay) is the only case that we had to take action, we don't have any other case...The projects in Al Marjan Island are going on, they are building and we are happy with that," Massaad, added.

Khoie and Arabtec in July signed a memorandum of agreement for the construction of La Hoya Bay in the island. The project, to be constructed in phases over the next four years, is estimated at Dhs2.7bn.

In September 2009, a RAK court had ruled in favour of some 800 La Hoya Bay investors and appointed property developer Rakeen, a development arm of Rakia, as judicial custodian of Khoie Properties, following news that Khoie Properties defaulted on land payments and failed to deliver the project in RAK.

Frank Khoie, CEO of Khoie Properties, however denied the company is insolvent, having Dh966 million in assets and Dh241m in liability.

Khoie, who was released from the jail in May, said the company has already secured Dh750m, which is sufficient to build phase one of La Hoya Bay Residence, and phase two of La Hoya Bay Business Village as well as one of the three marinas.

Part of that fund will be used to pay the remaining Dh230m land payment and in doing so, get the titles as collateral for another trench of Dh500m to start the construction of phase three of La Hoya Bay Regency.

Khoie said phases one and two will be delivered by December 2011, which is expected to generate about Dh1bn in receivables, which will be used to start the construction of phase four, the Bermuda Hotel Apartments and Yacht Club as well as the Autumn leaves - a semi-retirement luxury complex to be completed by December 2014.

Massaad says it is the vision of Sheikh Saud bin Saqr Al Qasimi, Crown Prince and Deputy Ruler of Ras Al Khaimah, that "nobody should lose money" in the emirate.

"For any investor or any buyer, our duty is that he doesn't lose his money," he said. "So for any investor who would invest in Ras Al Kaimah, he has to make sure that he is doing a proper investment and he is doing the construction and he will deliver his project. We hope that he will continue his project so that people who bought apartments from him (Khoie) don't lose their money."

Massaad said the first development to be completed on Al Marjan island is Rakeen's mixed-use project Bab Al Bahr, located on the peninsula of the island, thus called 'The Gateway to Island Living'.

The six residential buildings, shaped in the form of pyramids, are scheduled for handover in the third quarter this year. Further phases of Bab Al Bahr will feature a hotel, a shopping mall and an office tower.

Marbella Bay is expected for completion in 2011. The luxury resort development by Manazil Real Estate Sharjah, located on Island Number 2, is inspired by the architectural style of the historic Spanish region of Andalusia and will comprise of waterfront apartments and a range of leisure facilities.

Pacific by Select Group is scheduled for completion in 2011. Located on Island Number 4 with luxurious private beaches, Pacific will feature a wide variety of contemporary residences within a verdantly landscaped beachfront community, offering panoramic views of the Arabian Gulf and the natural surroundings of Ras Al Khaimah.