‘New financing’ sought for 42-storey Arriva project
(Source: Vancouver Sun)
A high-profile residential condominium tower near Stampede Park has been put on hold after the owner of the site recently filed for protection under the Companies’ Creditors Arrangement Act.
Calgary developer John Torode told the Herald on Monday work has stopped on the 42-storey second tower of the Arriva condo project in the old Victoria Park neighbourhood which has about 60 per cent of its 221 units pre-sold.
“What we’ve done is put that limited partnership which is the owner of that site — the second tower — into CCAA (Companies’ Creditors Arrangement Act),” said Torode, president of Torode Realty Advisors Ltd.
“What that does is gives us a chance to restructure the deal which would include finding new financing. The financing we had with the bank did not go well given the credit crunch and we think that we need to find alternative financing to proceed with the tower.”
The Companies’ Creditors Arrangement Act is a federal act that allows financially troubled corporations the opportunity to restructure their affairs. By allowing the company to restructure its financial affairs, through a formal Plan of Arrangement, the CCAA presents an opportunity for the company to avoid bankruptcy and allows the creditors to receive some form of payment for amounts owing to them by the company, according to PricewaterhouseCoopers.
Torode said it could take anywhere from one month to six months for the financial restructuring to take place.
The Arriva project includes a 34-storey tower that has been built and is close to sold out.Torode also recently announced that a planned third tower, which was to be another condo complex, would be a boutique hotel instead. A fourth tower that was part of the original plan was cancelled early in the development process.
The project is on a block between 12th Avenue S. E. and 11th Avenue S.E. and Olympic Way. At the construction site, small signs by Torode Construction Ltd., on the fence, say: “The Arriva 42 project is on-hold and this job site is secured and not operational.”
Several condo projects in recent months have been delayed or cancelled in Calgary.
Read Mario Toneguzzi and Kathy McCormick’s full article “Calgary condo tower on hold; developer seeks bankruptcy protection” in the Vancouver Sun (April 7, 2009).
“Boom to bust to blip” Globe and Mail (April 8, 2009)