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.