KHOIE PROPERTIES APPOINTS COMMITTEE TO KICKSTART LA HOYA BAY CONSTRUCTION

Ras Al Khaimah , March 3, 2010

After 14 months of fruitless effort to reach an amicable solution with the Ras Al Khaimah Investment Authority (RAKIA) over the settlement of remaining land payment, Khoie Properties is moving ahead to initiate construction at the site. CEO, Frank Khoie states, “For over a year, RAKIA has done virtually nothing meaningful to reach an amicable settlement to provide extension on our land payment so that we could continue the construction of La Hoya Bay Project which was interrupted by Rakia's reckless actions on our guarantee cheques. So therefore, we have no alternative but to appoint new managers to kick start the construction while we continue our litigation with Rakia to secure my release.

While, Mr. Khoie remains in detention and our legal team proceeding with our AED 2 billion lawsuit against RAKIA and key executives, the Khoie Properties Board of Directors have approved the plan to appoint a committee to forge ahead while the legal team are continuing their efforts to secure Mr Khoie's release.

The committee will be composed of four specialists. Legal issues will be handled by a retired judge with 17 years of experience, a Ph.D, in Sharia law and another in secular law. Financing is to be addressed by a retired commercial banker with almost two decades in of experience with Abu Dhabi Commercial Bank here in the Emirates. The committee will also include an Architect/Engineer from DKD who designed La Hoya Bay. The final member of the team has experience in management and multi-organizational collaboration and will be working to bring the parties together. The team is charged to arrange for financing construction and kick-start the construction within 90 days.

Another announcement from the Khoie Properties Board also approved that should any of our investors desire to have a refund of their deposit they would be able to sign the proper forms and receive a refund within the said 90 days.

An invitation is extended to all La Hoya Bay investors to attend the meeting this coming Friday, 5 th March at 11:00 a.m. at the La Hoya Bay site in order to hear the official announcement by company staff and committee members. Dutch Foundation will be commissioned to resume piling work for the remaining three Residence buildings and the Business Village. DKD will be there to present their plans for the Residence and Business Village and answer any questions that investors may have.

In the mean time, Khoie Properties will continue to work with RAKIA to negotiate an extension on the remaining land payments, reach an amicable settlement and end what has been a very stressful battle between the parties. “I remain hopeful”, says Mr. Khoie, “that the visionary message delivered last year by HH Sheikh Saud in an interview by Reuters in which he said, “The solution for Khoie Properties is to provide flexible payment plan for the land” will be honoured by Rakia, and that the innovative solutions he outlined will be put into practice and I will be able to return to my desk and successfully lead a delayed, but nonetheless complete delivery of the La Hoya Bay project.”

 

Notice : Due to the unpredictable weather conditions at present which has caused flooding and road closures, please be informed that the investor meeting will be held on Friday 5 th March 2010 at 11.00am at the Khoie Group Head Office in Dubai and not as previously stated at La Hoya Bay site, Ras Al Khaimah.

 

Please Click Here for the Location of Head Office in Dubai