Presale buyers at Halo Residences on Yonge, one of three Cresford condo projects currently in receivership, could be getting their deposits back in a new sales transaction expected to close this month.
The Provincial Court Approval and Vesting Order for the 45-storey project was granted on September 15th, according to online information from PwC, the firm appointed as the receiver for the Cresford projects, and a recently published website managed by the purchaser. The sale to the new owner is expected to close by mid-October.
On September 28th, PwC posted an update on the receivership page for Halo Residences noting the standalone website had been created by the purchaser, 494 Yonge Street Inc., to outline the building’s current status and future plans.
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According to the website, which includes additional details about the purchase agreement, 494 Yonge Street Inc. is a real estate holding company managed by QuadReal Property Group LP.
A review process of Halo Residences’ development strategy is underway to determine if the project should move forward as a condo or rental development — a process that could take up to 60 days, the website notes. An update on the decision will be posted to the website.
The website further explains that the vesting order will terminate all existing presales contracts upon the transaction’s completion, and deposits will be returned to purchasers. If 494 Yonge Street Inc. re-launches Halo Residences as a condominium within 24 months of closing, both the Halo Residences website and PwC explain that previous purchasers will be given the right to purchase their previous unit at a discounted rate of $150 per square foot off the new list price.
If they choose to decline this offer or no new option to buy back their unit is made, purchasers will receive a cash payment equal to two percent of the cash deposit they previously paid, the websites say.
In late March, Halo Residences, along with The Clover on Yonge and 33 Yorkville, were placed in receivership while PwC was appointed as the receiver and manager of assets. The three high-rise condominium projects launched by Toronto-based luxury developer Cresford were sold out and under construction at the time.
Approximately 1,805 buyers entered into purchase agreements across the three projects, amounting to roughly $252 million in agreement deposits, according to online information provided by PwC and previous reporting by Livabl.
Recent reporting by The Globe and Mail says that negotiations for The Clover with developer Concord Pacific have stalled. Meanwhile, legal discussions surrounding 33 Yorkville appear to be ongoing.