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.

An application to change the zoning has been filed for three buildings in Surrey, close to Gateway Station. The plan consists of 967 residential units spread out among three buildings, along with 984 parking spots for vehicles. The project is required to contribute to community amenities and has received initial approval from the Surrey City Council, with a public meeting on February 12th.

The Specifics Regarding the Planned Development of Three Towers with 37 Floors

The British Columbia city of Surrey has been presented with a proposal to construct three high-rise buildings in a transit-oriented development (TOD) area. The structures would be situated near Gateway Station, at the following addresses: 11151 Bolivar Road, 13340 112th Ave., and 13307 King George Boulevard.

Located within 700 meters of Gateway Station, the site qualifies as a Tier 3 transit-oriented development (TOD) zone according to the recently enacted provincial law. This legislation mandates a minimum floor space ratio of 3 and a minimum building height of eight storeys.

Oviedo Living Surrey, a local company known as Oviedo Properties, is presenting a proposal for the site. At present, the southern section of the site houses an automobile dealership and it is classified as Highway Commercial Industrial (CHI) zoning. Oviedo aims to request a rezoning to Comprehensive Development (CD-1).

The plan consists of three buildings that have a combined sum of 967 living spaces. Building One, located at the bottommost part of the area, will reach a height of 21 floors and comprise 214 units, which include apartments with one, two, and three bedrooms. Additionally, it will feature a commercial retail space measuring 2,557 square feet.

Tower Two, which is linked to Tower One, will of 37 stories and will accommodate a total of 437 units with different dimensions. The construction of these two towers will take place simultaneously, forming a crucial part of the initial phase.

The northern area of the site would feature Tower Three, a freestanding structure that would soar 34 levels and house 316 dwellings.

The project would feature a total of 984 parking spaces for vehicles. In addition, residents would have access to various amenities such as fitness facilities, play areas for children, meeting rooms, and outdoor spaces that include living rooms, sun decks, and a community garden.

Chris Dikeakos Architects, the architectural company responsible for the project, has integrated a distinctive design influenced by the nearby Bolivar Creek. Moreover, they will also enhance and rehabilitate the riparian zone located along the western boundary of the site.

The growth is bound by community amenity contributions (CACs), which encompass fees per dwelling and extra residential space. Surrey City Council has granted preliminary endorsement to the plan and will conduct a public meeting on February 12th.

For more than two and a half decades, Oviedo Properties has been dedicated to constructing exceptional homes that meet the highest standards of quality and durability.

Oviedo Properties is a privately owned company that focuses on project development and construction. The company, based in Surrey, British Columbia, has a team of principals with extensive experience in property development. Oviedo is known for using top-notch materials, demonstrating exceptional craftsmanship, and providing great value, resulting in the creation of exceptional homes.

The principals in the Fraser Valley of British Columbia have constructed neighborhoods consisting of townhouses, condos, and detached houses. The company takes great pride in its projects and attributes their success to the dedicated efforts of a core team comprising architects, designers, reliable suppliers, and skilled workers. Their strong commitment is to ensure that each development becomes a source of pride for the community. Oviedo derives immense satisfaction from putting in the utmost effort to create top-quality homes, providing a happy environment for families to raise their children.

Oviedo Properties: Building Quality Homes for Over 25 Years

Oviedo Properties is a privately owned company that focuses on project development and construction. The company, based in Surrey, British Columbia, has a team of principals with extensive experience in property development. Oviedo is known for using top-notch materials, demonstrating exceptional craftsmanship, and providing great value, resulting in the creation of exceptional homes.

The principals in the Fraser Valley of British Columbia have constructed neighborhoods consisting of townhouses, condos, and detached houses. The company takes great pride in its projects and attributes its success to the dedicated efforts of a core team comprising architects, designers, reliable suppliers, and skilled workers. Their strong commitment is to ensure that each development becomes a source of pride for the community. Oviedo derives immense satisfaction from putting in the utmost effort to create top-quality homes, providing a happy environment for families to raise their children.

Summary

Surrey’s City Hall has been presented with a rezoning application for a triple-tower development in a transit-focused area, close to Gateway Station. Oviedo Properties, a locally based company, is seeking to rezone the land to make way for 967 homes spread across three high-rise buildings, as part of a larger plan to create a vibrant and convenient community. This proposal falls under the third tier of the province’s new legislation aimed at promoting transit-oriented development.

The development project will feature three towers, each with a unique height and number of units. Tower One, situated at the southern edge of the site, will stand 21 storeys tall and offer 214 units. Tower Two, connected to Tower One, will rise 37 storeys and provide 437 units. Tower Three, a freestanding building, will have 316 units and reach a height of 34 storeys. The project will also include extensive indoor and outdoor amenity spaces, totaling 2,946 sq. m and 3,900 sq. m, respectively. The proposal is subject to certain community and affordable housing contributions, and Surrey City Council has already granted first and second readings. A public hearing is scheduled for February 12.

Developers of a high-profile high-rise project in Vancouver’s West End have been placed under receivership, as they owe $82.2 million to the Bank of Montreal. The project, called 1045 Haro Street, consists of a 55-storey condo tower and a 15-storey tower with retail space, a childcare facility, and a public plaza. The owners of the property purchased it in 2018 but have been unable to meet the city’s requirements to move forward with the project. They attempted to sell the property but received offers significantly lower than the purchase price. The Bank of Montreal subsequently filed for receivership to arrange a sale of the property. The appointed receiver will not be able to seek approval for sale offers until April 26.

The Information About The 55-storey Tower In Vancouver’s West End Has Been Placed Under Receivership

A big building project in Vancouver called 1045 Haro Street has hit a roadblock. The developers, Haro-Thurlow Street Project Limited Partnership, are in financial trouble and owe $82.2 million. A bank called the Bank of Montreal has taken legal action and asked the court to appoint someone to take over the project and sell the property.

The project was supposed to include a 55-storey condo tower and a 15-storey tower with 450 condos and 66 rental units. The plan also included retail space, a childcare facility, and a public plaza.

The property is owned by Harlow Holdings Ltd., but the partnership that was responsible for the development is the one in financial trouble. The partnership is made up of several companies, including 11044227 BC Ltd., Forseed Haro Holdings Ltd., and Terrapoint Developments Ltd.

Intracorp Homes, a Vancouver developer, was managing the project, but they are not in financial trouble themselves. The architect for the project is Patkau Architects.

The owners of the property bought it in 2018 for $172.75 million, with financing from the Bank of Montreal and the companies in the partnership. They have been unable to meet the requirements set by the City of Vancouver to move forward with the project, and they have not formally applied for a development permit. One of the reasons for this is that the project would block some views, which is currently being reviewed by the city.

The owners have been in talks with the bank to try to extend the deadline to repay their debt, but the bank has refused. The owners then tried to sell the property, but the offers they received were much lower than what they paid for it. This caused tension between the partners in the project.

The owners missed a payment in July 2023, and the bank demanded repayment. When the owners did not comply, the bank filed for receivership. A receiver is someone who takes control of a property and sells it to pay off the debt.

The appointment of the receiver was approved by the court, but they are not allowed to sell the property until after February 23. They also have to get court approval for any offers they receive.

The property has been appraised at $192 million, but it is unclear if any lenders would recognize that value. The value may have also decreased since then due to various factors such as higher interest rates and construction costs.

If the receiver does start a sales process, they will likely hire a real estate brokerage to help. The offers they receive will be narrowed down before being presented to the court for approval.

Wrapping Up

Major high-rise development project in Vancouver, the developers have been placed under receivership due to an outstanding debt of $82.2M owed to the Bank of Montreal. The project planned for 830-850 Thurlow Street and 1045 Haro Street, was set to include a 55-storey strata condo tower, a 15-storey tower with 450 strata condominiums and 66 rental units, as well as retail space, a childcare facility, and a public plaza. The development site is owned by Harlow Holdings Ltd. and beneficially owned by Haro-Thurlow Street Project Limited Partnership (HTLP), which is owned by several parties. Intracorp Homes is serving as the development manager of the project but is not subject to the receivership application. The owners defaulted on their interest payment in July 2023 and BMO subsequently made a demand for payment on August 29, leading to the receivership application.

BMO is seeking the appointment of a receiver to arrange a timely sale of a property owned by CM Group, as they have lost confidence that the owners are working to repay the debt. The property’s value is disputed, with an appraisal valuing it at $192M based on development potential, but the president of Intracorp Homes expects it to be even lower than the $93M offer submitted by Chard Development. The owners have identified three lenders willing to provide loans to repay the debt, but BMO claims no evidence has been provided. Deloitte has been appointed as the receiver, but will not be able to undertake any sales efforts until after February 23 and cannot seek approval of any sale offers until after April 26.

A townhouse project in Langley, British Columbia, known as The Willoughby, has been put into receivership after owing creditors more than CAD39.9m ($30.5m). The project was being built by Quarry Rock Developments and was partly built with a few townhouses finished and others in various stages of completion. MNP Ltd., the receiver, is winterizing the project to protect the partially built townhouses from the weather and will assess whether to complete the construction of existing homes or sell them as is. Five creditors have been listed, including four mortgage holders on the project.

The Information about Langley Townhouse Project in Receivership, Owes Nearly $40 Million

The new development project at 204 Street has stopped its development.

A townhouse development project in Langley, consisting of 87 units, is currently in receivership, meaning it owes creditors over $39.9 million, according to court documents.

The project, called The Willoughby, is located on 70A Avenue in Langley, specifically on the Willoughby Slope. It was taken over by receivers on November 8, 2023, as ordered by B.C. Supreme Court Justice Joel Groves under the Bankruptcy and Insolvency Act. When a development project is put into receivership, a court-appointed receiver will try to either finish the project or sell it in order to repay the creditors who have not been paid.

The receiver for this project is MNP Ltd., who has submitted documents listing five creditors. These creditors include four mortgage holders on the project: MCAP financial corporation, which claims to be owed $29.6 million, Canadian Mortgage Servicing Corporation, claiming $7.5 million, and Steelcrest Construction, which has a builders lien on the development for more than $2.8 million. There are two other creditors who hold mortgages on the project, but their claimed amounts are listed as “unknown” in the receivership filing.

The first phase of the project has been partially built, with a few townhouses completed and others in various stages of completion. Currently, MNP is taking steps to protect the partially-built townhouses from the weather.

Next, MNP will assess the project and determine whether to complete the construction of the existing homes or sell them as they are. The recommendations will then be presented to the court, most likely in late January or early February.

Attempts to reach Quarry Rock Developments (QRD), the developer of the project, for comment were unsuccessful as their office was closed during the holidays.

In addition, QRD is facing another creditor’s court action over a nearby property on 204 Street. Canadian Western Trust Company has filed a petition with the B.C. courts to foreclose on the property due to a $6 million loan to another QRD holding company. QRD’s lawyers have responded, stating that the total developed value of that property and two adjacent properties will be $230 million, suggesting that there is enough equity in the subject property to pay off the mortgage.

It is important to note that none of the claims mentioned in the filed documents have been proven in court.

Wrapping Up

A townhouse project in Langley, known as The Willoughby, has been placed in receivership after owing creditors over $39.9 million, according to court documents. The project was being developed by Quarry Rock Developments (QRD) and is located on the Willoughby Slope. The receiver, MNP Ltd., has listed five creditors, including several mortgage holders on the project. Phase one of the project is partially built, and MNP is currently winterizing the development to protect it from the weather. MNP will assess whether to complete the construction or sell the project as is and make recommendations to the court in late January or early February. QRD is also facing a separate creditor’s court action over another nearby property.

Westbank Corp., a well-known Canadian developer with a reputation for ambitious architecture, is currently facing problems with unpaid bills for multiple projects in Toronto and Seattle. Numerous contractors have claimed millions of dollars in unpaid fees, resulting in a rise in lawsuits and liens over the past year.

The construction industry has been particularly affected during this challenging period, as borrowing costs and construction expenses continue to soar. Westbank has found itself entangled in disputes with over two dozen construction and trade businesses regarding unpaid bills. It is important to note that these allegations have yet to be proven in court.

In response, the Vancouver-based developer has refrained from providing detailed comments on the ongoing disputes, as they are still under negotiation or litigation. However, Westbank has expressed its expectations of reaching a resolution for these matters. The company also emphasized that construction delays caused by the global pandemic are not exclusive to its projects, but rather a common challenge faced by the entire industry.

Similar to other developers, Westbank has faced significant increases in the costs of materials and labor, as well as rising borrowing costs. Residential construction expenses have risen by 58% over the past three years. Additionally, the prime interest rate charged by banks has reached its highest level since the beginning of the century, currently standing at 7.2%.

These sharp escalations have resulted in financial difficulties for several other Canadian developers throughout the year. For instance, Sam Mizrahi’s luxury condo project, The One, defaulted on $1.6 billion in debt payments and was put into receivership in October. Vandyk Properties faced similar consequences as lenders placed several of their developments into receivership after defaulting on over $183 million in loan payments. StateView, a residential builder located north of Toronto, also faced receivership after defaulting on $349 million in debt payments.

In Vancouver, Coromandel Properties filed for creditor protection when its lenders demanded repayment of over $200 million in loans. Onni Group, a developer with properties in various North American cities, has also been sued by multiple contractors in British Columbia for unpaid bills.

While other Canadian real estate developers have faced legal actions and creditor challenges, Westbank stands out as one of the largest and most prominent developers experiencing a considerable amount of litigation and claims from unpaid creditors. Though the individual amounts of some liens may not be substantial, the high volume of claims and ongoing litigation suggest developer-facing conflicts with trades on multiple fronts.

Over the past decade, Westbank has expanded its projects across Seattle, Toronto, and Vancouver, leading to a delay in completion dates for skyscraper projects. Westbank and its ex-general contractor, Graham Construction & Management Inc. were accused by >12 construction companies in Seattle, of not providing payment for work conducted at residential complexes called Museum House and WB120.

The issues began to surface in 2022 when Graham was removed as the contractor for Museum House. As the general contractor, Graham was responsible for hiring specialists in various areas such as welding and window installation. When Graham was replaced, subcontractors turned to Westbank for their payment, resulting in a pile-up of bills. Twenty-two subcontractors have since placed liens on the Terry project (Museum House), Graham, and Westbank’s development company, Icon West.

For instance, High Rise Glazing Specialist LLC filed a lawsuit in December 2022, claiming that Graham and Terry failed to pay $1.45 million for work completed between June 202 and June 2022. However, Graham and High Rise Glazing have not responded to requests for comment. There is a tentative trial scheduled for next year.

Furthermore, subcontractors are continually placing liens against the Terry project. Most recently, Zuhause Design LLC filed a lien on November 8, 2022, demanding payment of $231,781.

Situation In Volatile Construction Industry

Overall, Westbank’s current situation reflects the challenges faced by developers in a volatile construction industry. While negotiations and resolutions for unpaid bills are ongoing, the company remains committed to progressing with its projects, despite the difficulties caused by the global pandemic.

According to the law in Washington State, a lien becomes unenforceable after eight months if the person who filed the complaint doesn’t follow up with a lawsuit. However, many contractors choose not to take this step because it can be very expensive. Even if some liens on the Terry project have expired, it doesn’t mean that the contractor’s unpaid bills have been resolved.

When there is an active lien on a property, it lowers its value and prevents the developer from refinancing unless they pay the unpaid bill or obtain a bond to replace the lien.

Even though Westbank has released some liens by posting bonds, it doesn’t mean that the subcontractors have received their payment.

Iris Window Coverings NW Inc. is one of the subcontractors affected. They provided automated draperies for the Terry project and have an outstanding bill of US$123,178. Westbank posted a bond of US$184,000 to release the lien, but Iris Window Coverings has not received any of that money and is now facing financial difficulties.

A similar situation has occurred at WB120, which consists of two skyscrapers with about 1,000 apartments. Several subcontractors filed liens against the project over the past two years, with the latest one filed in December. One of the subcontractors, Zuhause, placed a lien of US$13.5 million due to unpaid work. Zuhause started work on the project in June 2021.

Westbank was also involved in litigation with the general contractor, Graham, over a US$50.1 million lien filed against the WB120 project. The general contractor accused Westbank of not paying for work done from April 2018 to November 2022. Graham countersued when Westbank took Graham to court trying to reduce the amount of the lien. Although the lien was eventually reduced to US$42.5 million and released, the lawsuit remains open.

Having a large number of liens filed against a developer is usually seen as a sign of funding issues and other problems.

In the case of Westbank, the company usually acts as its own general contractor for its projects. However, in Seattle and Toronto, where it is building various properties, Westbank hired EllisDon Corp. as the contractor. The relationship with EllisDon began to deteriorate in 2022, and Westbank took over as its own contractor for both projects.

EllisDon, one of the top construction management companies in the country, filed a legal action against Westbank in June for missed payments at Mirvish Village. They also filed and then dropped a separate claim for $4.4 million owed on another project, Duncan Street.

Westbank is a company that’s involved in building the King Toronto condo project, which is currently being constructed. However, they have faced some legal issues recently. Three other construction companies have sued Westbank for unpaid bills related to the Mirvish site. Westbank’s executive, Ian Duke, acknowledged that these situations can be complex and take time to resolve. He also mentioned that removing EllisDon, one of their contractors, has been a disruptive decision but disputes with trades are a normal part of the business.

However, other industry executives warn that allowing contractor relationships to deteriorate like this can be costly in terms of reputation, time, and money. Bryan Levy, the CEO of Toronto-based DBS Developments, emphasized the seriousness of not paying key trades.

Westbank started in the 199s with the construction of shopping malls and high-end condo buildings in Vancouver. Over the years, they have taken on more high-profile projects, including the Shangri-La Tower, the redevelopment of Woodward’s department store site, and the Fairmont Pacific Rim hotel.

The company expanded to Toronto in 2012 and continued to grow in Vancouver, Toronto, Seattle, and San Jose. They also ventured into Asia, with projects in Tokyo and offices in Taipei, Shanghai, and Hong Kong.

Like many developers, Westbank took advantage of low-interest rates to launch new projects. However, as interest rates have risen, they have faced challenges in completing projects on time. Some of their projects in Seattle and Vancouver have experienced delays, and sales of condo units have been slow.

The rise in interest rates has also impacted Westbank’s construction loans. For example, a loan they took out in 2018 for their Alberni condo project now has a much higher interest rate due to rate increases by the central bank.

Late payments have become more common in the development industry, which puts financial pressure on small suppliers. Craig Macklin (president), of Lumbermens Credit Group Ltd., expressed concerns about the impact of extended cash crises on these suppliers. He also mentioned that delays in payments can lead to further delays in completing building projects.

Iris Window, a drapery supplier in Seattle, is one of the companies waiting to get paid by Westbank. They have struggled with rising inflation and labor costs, making it difficult to make money on contracted jobs.

Overall, while Westbank has faced challenges and legal issues, its major partner Allied REIT has expressed confidence in their ability to meet their obligations. However, it is important to monitor the situation and consider the potential impact on the company’s reputation and relationships with contractors and suppliers.

Summary

Canadian developer Westbank Corp. is facing legal action from several contractors claiming millions of dollars in unpaid bills at projects in Toronto and Seattle. The company, known for its ambitious architecture, has been hit with more than two dozen lawsuits and liens over the past year as borrowing costs and construction expenses soar. Westbank has not commented on the individual disputes, but said it expects to reach a resolution. The Vancouver-based firm has had to contend with a significant spike in costs for materials and labour, along with soaring borrowing costs.

Westbank, a Canadian real estate developer, is facing multiple liens and lawsuits from subcontractors over unpaid bills for its construction projects in Seattle and Toronto. While Westbank has released some liens by posting bonds, subcontractors claim they have not received payment. The situation has led to financial struggles for some of the affected companies. Experts say a large number of liens filed against a developer is seen as a red flag of problems with funding. Westbank has traditionally served as its own general contractor but broke the pattern in Seattle and Toronto, where it is building offices, condos, and rental apartment buildings. However, the relationship with its general contractor began to fray in 2022, and Westbank took over as its own contractor from EllisDon on both projects. Three other construction companies sued Westbank for unpaid bills over the Mirvish site in September and October.

Westbank, a major Canadian real estate developer, is facing financial pressure due to rising interest rates and delays in completing some of its high-profile projects. The company, which has expanded into Vancouver, Toronto, Seattle, San Jose, Tokyo, Taipei, Shanghai and Hong Kong, has taken out construction loans with variable interest rates that have increased significantly as central banks have raised rates. Some of its projects have also been delayed beyond their original completion dates. While Westbank has not disclosed specifics about its project financing or partnerships, it has received support from major partners such as Allied REIT.

The King Toronto condominium project by Westbank has been delayed due to the bankruptcy of its window-wall contractor, Integro Building Systems Inc. This has caused issues for sub-trades like Iris Window, a Seattle drapery supplier, who are waiting to get paid by Westbank. Iris Window has struggled to make money on fixed-price contracts due to rising inflation and labor costs. Westbank recently contacted them to see if their bids for another delayed project were still valid, but Iris Window declined due to their financial situation.