On Friday, Vancouver-based developer Concord Pacific announced it had acquired ownership of The Clover on Yonge, one of three under-construction condominium projects by Cresford Development Corporation to enter into receivership.
Concord Pacific confirmed to The Toronto Star that it had agreed to the terms set by the Ontario Superior Court of Justice, paying the property’s $180 million debt to the primary mortgage holder, British Columbia Investment Management Corporation (bcIMC).
Construction on the 44-storey high-rise, situated near the intersection of Yonge and Wellesley, is approaching completion and the site has remained active throughout the proceedings. Its 499 units are expected to be resold at prices higher than what pre-construction buyers contracted to purchase them for in 2016.
While these arrangements have yet to be finalized, buyers will likely have to shell out more money for their units, albeit with a price per square foot discount, or retain their deposits with interest and walk away.
In late March, PricewaterhouseCoopers (PwC) was appointed as the receiver for the three Cresford projects, The Clover on Yonge, Halo Residences and 33 Yorkville. PwC intended to put forth a stalking horse agreement, in which a minimum bid is set to avoid low-ball offers, for The Clover on Yonge and Halo Residences.
The court opted to revise the receivership plan after Concord’s Senior Vice President Cliff McCracken proved the company had an agreement to acquire ownership of Cresford prior to when the order was granted on March 27th. The court agreed to side with Concord so long as they paid off the Clover debt owed to bcIMC.
There’s been no word yet on whether Concord will also purchase Halo Residences, a sold-out 45-storey tower located slightly farther south on Yonge Street.
