- What The Modus townhouse project in Vancouver is in receivership
- Why The company has failed to make payments on a $15m mortgage
- What’s next Ernst & Young was appointed the receiver
A Vancouver condominium development is in receivership after failing to meet its debt obligations, according to court documents.
The Supreme Court of British Columbia this month granted a foreclosure petition filed in February by First Commercial Bank against Grandlake Investments Corp. Storeys first reported the developments.
Centred Developments, which shares an owner with Grandlake, is building a 17-unit townhouse project at 1488 Park Drive. According to Storeys, the development is half completed and has seen a host of problems, including a $680,000 lien placed on it from Fairbrothers Framework. The publication pegged the property’s value at just over $9m.
According to the petition, First Commercial in January sent letters demanding payment on an outstanding sum of $10.4m as of Feb. 14, according to Storeys, but payments were not made. The initial mortgage amount was $15m.
Interest was nearing $2,500 a day on the mortgage debt in February.
Grandlake is also facing a lawsuit filed on April 15 by a buyer seeking the return of a $158,890 deposit and $20,000 in damages over the developer’s decision to build the structure with wood instead of the originally agreed-upon concrete.