Rakeen, a leading property developer, has been appointed judicial custodian of the $800 million La Hoya Bay project following a recent ruling by the Ras Al Khaimah Court, a statement said.

La Hoya Bay was the main project of Khoie Properties, which had become insolvent, defaulted on land payments and failed to deliver on its promise to buyers of units in the project in Ras Al Khaimah, the statement said.

This prompted the Ras Al Khaimah Investment Authority (Rakia), the government body responsible for the socio-economic growth of the emirate, to appeal to the court requesting that Khoie Properties be brought under judicial custodianship until the completion of La Hoya Bay by a competent real estate developer to ensure that the rights of investors are protected, it said.

Rakeen, which is the development arm of Rakia, will now take over as the judicial custodian of Khoie Properties until the completion of La Hoya Bay, a $800 million waterfront residential and leisure complex on Ras Al Khaimah's Al Marjan Island, to the relief of some 800 investors.

The investors, including around 400 from the UK, had already made a 30 per cent initial payment to Khoie Properties, which failed to keep its promise. Rakeen stated that it will protect the rights of the investors, which means that those who have made the 30 per cent down payment will only be required to pay the remaining 70 per cent. Furthermore, 50 per cent of the balance will be paid in five instalments of 10 per cent each, with 20 per cent to be paid upon handover, the statement said.

'The RAK Court's decision to appoint Rakeen as custodian of Khoie Properties is a significant step that promotes and protects the welfare of investors and property buyers in Ras Al Khaimah,' Dr Khater Massaad, chief of Rakia.

'Rakeen has opened an escrow account as part of measures to promote transparency, and we are committed to complete the La Hoya Bay project and deliver it to the buyers,' added Wahid Attalla, executive director, Rakeen.

La Hoya Bay Residence comprises seven residential towers and over 1,400 residential apartments along with three swimming pools, tennis courts, restaurants and shopping facilities nestled between white sandy beaches and lush green landscapes. The Mediterranean-inspired La Hoya Bay Business Village offers freehold office spaces with free-zone licences.-TradeArabia News Service