United Arab Emirates - PM Communications

RAS AL-KHAIMAH / 10UAE 3rd NOVEMBER 2007Resort style real estate will bringa Riviera lifestyle to the Middle EastInspired by luxurydevelopments inDubai, a majorwaterfront projectis under way inRas Al-KhaimahWork started in May on construction of the La Hoya Business Village, comprising more than 500,000 sq ft of office spaceFRANK KHOIEChairman and CEO of Khoie Properties‘The focus ison resort-styledevelopmentsrather thanhigh rise’On a man-made island off the coastline,construction has begun on the firstphase of a multi-phased, multi-billion pounddevelopment designed to bring a touch ofMonaco and Cannes to Ras Al-Khaimah. LaHoya Bay is a £400 million Mediterraneanstylewaterfront residential and leisure projectto be built in six phases on Al Marjan Island.The £88 million first phase, currently underway, consists of 1,100 freehold studio, one,two and three bedroom apartments and onsiteleisure amenities that will offer a Rivieralifestyle in the heart of the Middle East.The developer behind La Hoya BayResidence is Khoie Properties,which in Marchlaunched its second project on the island,theLa Hoya Bay Business Village, a £74 millioncommercial development.Further projects fora marina, luxury hotels and apartments arecurrently at the design stage.Frank Khoie,the company’s Chairman andChief Executive Officer,and founder of its parent,Khoie Group, believes the emirate hashuge potential for growth and describes it asthe next “hot spot” of the region. His companyis committed to investing almost £1 billionin Ras Al-Khaimah by 2010.Over the nextfive years, he expects to see at least 200,000people migrating to the emirate.Khoie Group,initially an engineering companyinvolved in the design of industrial projectsfrom electronics to machine tools, isnow an amalgamation of several companieswith global interests built up over the last 32years. Khoie Properties was established in2005.Mr Khoie acknowledges that the inspirationfor the company’s involvement in Ras Al-Khaimah came from Dubai,where palm styleisland developments with luxurious waterfrontresort homes have proved hugely popular– not least with buyers from Europe.“When I was in Dubai in 2001, I realisedthere was a huge opportunity,” he says.“Wehad done property development in Singapore,we had done property development in LosAngeles,and I have always been interested init. From 2001 onwards, we saw huge opportunitiesin the quality of funds coming hereand the potential of expanding into propertydevelopment as freehold laws permittedus to buy and develop projects. Of course,as an entrepreneurial organisation we lookedfor niche markets and niche developments,and the niche we found was Ras Al-Khaimah.”The first phase of the company’s Al MarjanIsland project, set amid white sand beachesand lush green landscapes, is due to be completedin July next year. Covering an area ofjust over 15 million sq ft, it will include 725resort-styled apartments, three swimmingpools, tennis courts, restaurants and shoppingfacilities.“RAK is focusing more on resort-style developmentsrather than high-rise buildings,”explains Mr Khoie. “They have learnt a lessonfrom Dubai;it is easy to build huge buildingsbut it is difficult to manage them.Theycreate a level of crowding that is not necessarilyattractive for tourists.Of course,Dubaiis now becoming a financial and banking corporateheadquarters, but in Ras Al-Khaimahwe believe that we should not move to imitateNew York, and should avoid a crowdedcommunity – especially with the beautifulbeaches and the blue water we have.“Tourists need a place where they cancome and relax.For this reason,His HighnessSheikh Saoud is particularly interested inkeeping RAK fairly low key in terms of development.Thefocus is on resorts,golf courses,and polo clubs, and there is a great emphasison yachting and water sports.Very fewprojects are going to include high-rise buildings;all our projects will be resort style.”Construction started in May on KhoieProperties’ £74 million project, La Hoya BayBusiness Village.Located in Ras Al-Khaimah’sfree zone area, the freehold commercial developmentwill extend over 500,000 squarefeet. The seven-storey building will offer fullyfurnished and ready-to-occupy office spaceranging from 40 square feet to 10,000 squarefeet. Amenities will include corporate andspecial event planning and organising, IT andtelecom services, tours and travel arrangements,virtual office services, video-conferencing,and on-site clinic and child care.Construction started in May.Following this, the company plans to developLa Hoya Bay Regency Hotel Apartments.Designed for guest investors, the 500 luxuriousapartments “with top class service likea hotel,and where one can live for any amountof time.The rest of the property we will rentto tourists.” After this, the company will belaunching another 800 apartments,which willbe called La Hoya Bay Pelican.“La Hoya Baywill be keeping us very busy for the next 3to 5 years,” adds Mr Khoie.British investors are high on the list of potentialpurchasers.“At the of top of our listis Britain.Next is Germany,and after Germanycomes Holland. Many of them are buying.There is also the Iranian elite who would liketo live and invest here.The UAE is surroundedby 2 billion people who find the quality of lifehere attractive to set up and start a business.“The British in general are extremely bullishabout the UAE.They have historical relationshipswith the UAE establishment. UKbusinesses have major developments here interms of property and technology,from managementto construction. The British runmany key areas of management here.They alsolove to come to the beach and have eithera second home or an investment abroad.The weather, location,a tax-free and developmentfriendly environment and generallypro-UK spirit here is always an assurance. IfI were British, I would invest here.”Within the next five to 10 years,Mr Khoieplans to establish a finance company to providemortgage financing to potential buyers.Another priority is to establish Khoie Holdingsby 2008 or 2009, and list on the LondonStock Exchange, as well as the Dubai StockExchange. ●