Many real estate companies in British Columbia have recently gone bankrupt – this article is about iFortune foreclosure. When one project faces bankruptcy, other projects by the same company are also likely facing similar problems. The latest example is iFortune Homes, based in Richmond. Like other companies such as Coromandel Properties, Align Properties, Quarry Rock Developments, and AimForce Development, iFortune Homes is now facing foreclosure proceedings, according to court filings obtained by Storeys.
Elm 41 at 2465 W 41st Avenue, Vancouver
Most of iFortune Homes’ projects were in the pre-construction stage meaning they were not generating income while debt was accumulating. The foreclosures against iFortune Homes involve five lenders and four projects, with two located in Vancouver one in Richmond, and one in Burnaby. Feng Luan is named as a guarantor in all of the proceedings. The court documents do not specify Luan’s relationship to iFortune Homes, but one document identifies him as “Feng (Peter) Luan.” The iFortune Homes website lists Peter Luan as the company’s President. 2465 W 41st Avenue Vancouver (Elm41) One notable foreclosure is for 2465 W 41st Avenue in Vancouver’s Kerrisdale neighbourhood, where iFortune Homes planned a 23-unit strata building called Elm41 likely named after the nearby Elm Park.
The project had reached the stage of accepting pre-sale registrations. iFortune Homes owns 2465 W 41st Avenue through iFortune West41 Holdings Ltd., which is facing foreclosure proceedings from both the first and second mortgage holders. CMLS Financial, now owned by Nesto, is the first mortgage holder & initiated foreclosure proceedings over a year ago, on August 18, 2023. This relates to a $13,000,000 loan from September 2019. iFortune Homes failed to make monthly payments starting in March 2023.
After issuing default notices, CMLS received some payments in June but in July, iFortune Homes’ bank account had insufficient funds, leading to another default and the foreclosure. On September 21, 2023, the court confirmed the outstanding debt at $13444,005.33 and set the redemption date (the date by which iFortune Homes can pay to halt the foreclosure) at March 21, 2024. The second mortgage holder HMT Holdings Inc. (also known as Harbour Mortgage Corp), filed a separate foreclosure application on August 30 last year. This relates to a $6,000,000 loan from May 2022, which iFortune Homes also defaulted on in July 2023 by failing to make an interest payment.
HMT Holdings named several companies and individuals as respondents, including Feng Luan, identifying them as corporate and personal guarantors of the loan. On February 29 2024, the court confirmed the outstanding debt at $7,195,580.65, with interest continuing to accrue, and set the redemption date at March 1. HMT Holdings obtained the right to sell the property but was unable to find a buyer. This right then transferred to CMLS Financial last month. In a rare occurrence, HMT Holdings also sought to sell other properties owned by the guarantors to recover what they are owed.
Auberry at 463 W 59th Avenue, Vancouver
The court allowed the sale of a $4,732,000 home in West Vancouver owned by one guarantor, Miao Wang. However the court did not allow the sale of a strata office unit in Richmond owned by another guarantor, Yan Jing Wang. 463 W 59th Avenue, Vancouver (Auberry) The second foreclosure property is 463 W 59th Avenue, near Cambie Street, where iFortune Homes planned two six-story strata buildings with a total of 63 units according to a City of Vancouver development application.Here is the text rewritten with factual & easy to understand vocabulary, using only English: iFortune Homes, a real estate developer, had plans for a project called Auberry in Vancouver. The project had reached the stage where they were accepting pre-sale registrations from potential buyers. iFortune Homes owns a property at 463 W 59th Avenue through a company called iFortune West 59 Holdings Ltd. This property is currently facing foreclosure proceedings along with some other related companies like iFortune West 59 (BT) Ltd.
iFortune West 59 (GP) Ltd. and iFortune West 59 Limited Partnership. The property consists of four single-family homes that were combined into one larger property in August 2021. The foreclosure was initiated on April 17 2024, by a company called 1282882 BC Ltd., which is the general partner of Magnolia V3 Limited Partnership.
This foreclosure is related to a loan agreement between Magnolia V3 and the developer, iFortune Homes, from March 23, 2021. The original loan amount was $16000,000. The guarantors for this loan who are also named in the foreclosure proceedings, were iFortune West 59 Limited Partnership, Xuling Holdings Ltd. and Feng Luan. On July 25, the Supreme Court issued an order confirming that the outstanding debt owed by iFortune Homes was $17,802,232.66 with interest continuing to accrue at 25% per year.
The court set a redemption date of July 26, 2024, after which the property could be sold. Magnolia V3 was granted the right to conduct the sale, and the property has been listed for sale by a real estate agent for $20,000,000. The property is valued at $21,163,000 by BC Assessment. There is another company, Globalwide Capital Management Corporation, that holds a second mortgage on the property.
However, Magnolia V3 has been unable to locate or serve legal documents to Globalwide because their registered office appears to be vacant and the company’s director cannot be found. Mega Mortgage Company & iFortune Homes had an agreement for a loan. The agreement was extended until November 4, 2024. However, iFortune Homes failed to make the required payments, & on April 18, Mega Mortgage Company formally demanded payment. According to Mega, iFortune Homes owes $15,440,557.53 as of May 23, with interest increasing by $3,863.01 each day.
2nd Ranking Mortgage Holder
Another company, 0980202 BC Ltd., also has a mortgage on the property. On June 25, this company filed a response to Mega’s foreclosure request. They argued that companies with lower-ranking mortgages are typically allowed to handle the sale before companies with higher-ranking mortgages. As of September 12, the Supreme Court has not yet issued an order confirming the debt & setting a deadline for payment, and no company has been granted permission to handle the sale. Feng Luan & Xu Ling Sun are listed as guarantors for the loan.
The court has had difficulty serving legal documents to Xu Ling Sun. On nine different days, process servers visited Sun’s home in West Vancouver, but they were unable to deliver the documents to her. Mega Mortgage Company stated that the process servers received no response from Sun regarding their attempts to serve her. Xu Ling Sun appears to be the director of Xuling Holdings Ltd. which is also a guarantor for the loan. Sun seems to be a family member of Peter Luan. The home where process servers tried to serve Sun is also the registered address of Peter Luan, according to court documents. Luan confirmed to a process server that he and Sun share the same home address. Also, Xuling Holdings Ltd.
and iFortune Homes have the same registered office address in Richmond. Across four projects, the total outstanding debt owed by iFortune Homes is $59,108,707, & interest continues to accumulate. These four projects appear to be the majority of iFortune Homes’ projects. Other projects listed on their website do not seem to be under foreclosure proceedings & some do not appear to be owned by iFortune Homes, as the company also provides development services. One project not listed on their website is Glitz, which received attention in 2018.
Glitz was planned to be an 11-story mixed-use project with 75 units office space, and retail space in Richmond. While not under foreclosure the Glitz project has been involved in a legal battle for over two years regarding alleged damage to the City of Richmond’s sanitary lines caused by preparing the land for construction. Various contractors are still arguing in court filings as recently as June 2024 about whether there was damage whether the damage was foreseeable, & who is liable. Attempts to reach Peter Luan for comment on September 11 were unsuccessful.