[Richmond] Atmosphere | 7 towers | 45m | Paused

[libtard]

Originally Posted by cairnstone

That is what happens when you go from doing a few small wood frame projects and then decide to play with the big boys without any of your money in the game. I don’t see anyone taking over this project. It will be a total redesign.

It’s been an empty lot / hole in the ground for almost 10 years. I suspect it sits there another 10

[cairnstone]

Originally Posted by libtard

It’s been an empty lot / hole in the ground for almost 10 years. I suspect it sits there another 10

10years haha maybe 4 construction started in 2019 demo started before

[jollyburger]

A bid to sell the troubled Atmosphere project on Alderbridge Way and No. 3 Road in Richmond has been paused pending efforts to make it a development-ready project for prospective purchasers.

The outside closing date for the project has been extended several times, most recently on Nov. 1, when the courts approved an extension until Dec. 27.

But documents filed with B.C. Supreme Court in advance of a Dec. 9 hearing in Vancouver note that Bowra Group, the court-appointed monitor, “has not received any bids that are compliant” with the sales and investment solicitation process (SISP) underway since the spring. The process is being handled by Cushman & Wakefield ULC.

Court documents do not provide on the bids received to date.

With the consent of the project’s primary creditor, Romspen Investment Corp. of Toronto, Bowra suspended the SISP “until the building permit issue is resolved.” It has requested a stay of court proceedings until Feb. 24, 2023. It expects to initiate a new sales process in the spring.

A key hurdle is the fact the project’s building permit has expired and a new one is needed.

“[We] previously extended the SISP dates in anticipation of successful negotiations with prospective purchasers,” Bowra reported Dec. 7. “All prospective purchasers have indicated that until the new building permit is issued, no final offers would be submitted.”

But to obtain a new building permit, the services of GBL Architects are required. GBL, however, is owed approximately $540,000 for architectural services provided to Alderbridge LP, the project’s original developer, under an agreement with South Street Financial Corp.

Without the cooperation of GBL and a new building permit, Bowra told the court that the project would lose its density entitlements and command a lower value from the market. It could also experience a delay of up to 18 months while a new owner secures approvals.

Bowra has therefore asked the court to compel GBL to continue providing services so that a building permit can be obtained, the sales process can resume, and creditors can receive the best possible resolution of their claims.

A brochure Cushman & Wakefield prepared for the property earlier this year described it as “one of the largest, high-exposure properties along No. 3 Road,” noting that “site excavation and other work-in-place completed, enabling significant time and cost savings in the overall project timeline.”

It added that “exceptional market receptivity” to the project meant that “strong end-unit sales … can be assumed.”

The project’s buildable square footage exceeds a million square feet, with 822 residential units averaging 750 square feet and approximately 200,000 square feet of office and retail space.

Alderbridge acquired the property in 2017 from UEM Sunrise (Canada) Alderbridge Ltd. through a numbered subsidiary for $113 million. It initiated construction in 2019 with plans for an office tower and 824 residential units in six towers. Five towers were to be sold as condos while one tower would have 112 market rental units and 38 affordable rental units.

A portion of the project was to have been purchased by Global Education City (Richmond) LP, an affiliate of CIBT Education Group Inc., for school facilities and student housing.

Court documents indicate that 288 of the residential units in the development sold following the project’s launch in 2019.

But court documents indicate that construction halted in September 2020 following challenges to secure construction financing during the early months of the pandemic. An initial effort by Cushman & Wakefield to sell the property in 2021 in early 2022 without a deal.

With obligations totaling $346.1 million, the project sought protection from creditors under the Companies Creditors Arrangement Act on April 1.

https://biv.com/article/2023/01/sale...hmond-put-hold

[officedweller]

Originally Posted by jollyburger

https://biv.com/article/2023/01/sale...hmond-put-hold

Well, hopefully GBL does not cooperate so the project will get redesigned!!!

[Doodler]

Originally Posted by jollyburger

https://biv.com/article/2023/01/sale...hmond-put-hold

This gave me a good laugh!

GBL is owed over half a million dollars on fees and yet Bowra thinks the courts need to compel them to keep working on this project! Shows a complete lack of respect out there for the A&D community.

[jollyburger]

Kind of interesting filing for this bankruptcy showing all of GBL's fees

https://bowragroup.com/wp-content/up...t-To-Court.pdf

[jollyburger]

Originally Posted by Doodler

This gave me a good laugh!

GBL is owed over half a million dollars on fees and yet Bowra thinks the courts need to compel them to keep working on this project! Shows a complete lack of respect out there for the A&D community.

It's now Bowra's fault, it's how the bankruptcy system works if they get declared a criticial supplier. There's lots of business that keep supplying companies facing bankruptcy even though they are owed money.

Critical supplier
11.4 (I) On application by a debtor company and on notice to the secured creditors who are likely to be affected by the
security or charge, the court may make an order declaring a person to be a critical supplier to the company ifthe court
is satisfied that the person is a supplier of goods or services to the company and that the goods or services that are
supplied are critical to the company’s continued operation.
Obligation to supply
(2) If the court declares a person to be a critical supplier, the court may make an order requiring the person to supply
any goods or services specified by the court to the company on any terms and conditions that are consistent with the
supply relationship or that the court considers appropriate.

[Doodler]

Originally Posted by jollyburger

It's now Bowra's fault, it's how the bankruptcy system works if they get declared a criticial supplier. There's lots of business that keep supplying companies facing bankruptcy even though they are owed money.

Yes, I am not implying its Bowra's fault. The quote "goods or services that are supplied are critical to the company’s continued operation.". My understanding is the company is not operational, so to me it feels like spending any additional time on this project is throwing good money after bad, hence GBL's stance on this. No guarantee that GBL will be more able to recover their fees by continually working on this.

I've gone down the road on this type of thing in the past, working on additional services after bankruptcy with no recovering of those fees. The amount was nowhere near $540K

[whatnext]

A long (subscriber) article in the Globe & Mail detailing the problems at private mortgage lender Romspen with a mention of Atmosphere's developers:

Private mortgage lender Romspen battles largest borrower, alleging defaults of $333-million amid redemption freeze
TIM KILADZE
UPDATED 1 HOUR AGO
FOR SUBSCRIBERS

Romspen Investment Corp., one of Canada’s largest private mortgage lenders, is locked in a court battle with its largest borrower after multiple loan defaults allegedly totalling $333-million – unpaid debt that has hindered its ability to fund investor redemptions.

Romspen has asked the Ontario Superior Court to appoint a receiver to take control of three properties that underpin the distressed loans. If approved, the receiver could sell the properties as it sees fit and the proceeds would allow Romspen to recoup some, or all, of the money it is owed. The three affected properties are located in Toronto: Woodbine Mall and Rexdale Mall, in the city’s northwest corner, and 1500 Birchmount Rd., in the city’s northeast corner.

The borrower, Issa El-Hinn, also known as Chris Hinn, is a commercial real estate investor and businessman. He originally defaulted on multiple Romspen loans in 2018, according to court filings, but signed a forbearance agreement with the lender at the time and has since sold six properties, remitting $222-million worth of proceeds to Romspen. The alleged $333-million still owed to Romspen is over and above the $222-million already remitted....

.....n Romspen’s case, it is going another route and trying to appoint a receiver for the properties – not just with Mr. El-Hinn, but also with another distressed loan to a British Columbia developer whose project has stalled.

The B.C. loan was intended to fund the development of a seven tower, mixed-use development in downtown Richmond but Romspen alleges that no substantive work has been done on the project lands since 2020. The borrower also filed for bankruptcy protection in April, 2022. Romspen alleges it is owed $191-million.

The borrower, Alderbridge Way LP, has since countersued, alleging Romspen breached its construction loan agreement.

While court battles are common in private lending because higher-risk borrowers are more likely to default, Romspen’s current fight with Mr. El-Hinn is notable because their business relationship goes back 24 years, according to court filings. Mr. El-Hinn is also Romspen’s largest borrower....

https://www.theglobeandmail.com/busi...rtgage-courts/

[jollyburger]

From CIBT's recent filing

On February 24, 2023, the stay under the CCAA
has been extended to June 2, 2023 and the sales and investment solicitation process was terminated until June 2023 to focus
on obtaining a new building permit.

https://www.sedar.com/GetFile.do?lan...&docId=5397922

[jollyburger]

The limbo game continues.

Richmond Atmosphere Project Under Creditor Protection To Re-Seek Building Permit

The 2023 Building Code is set to be adopted in December, and the Monitor notes that it is “imperative” that the owners submit a new building permit application before that happens. If an application is not submitted before then, the Monitor adds, the owners would have to return to the development permit stage, which could result in a delay of up to four years, increased financial contributions to the City, and a loss of density, all of which would further harm the value of the property to potential buyers.

GBL Architects has indicated that it expects to meet the deadline and the Monitor estimates that the new building permit application will cost $1.9M, which does not include the fees paid to the City after the submission, before the building permit is issued.

Reached for comment, CIBT Chairman and CEO Toby Chu told STOREYS that he could not speak to the case because it is ongoing, but says that the discovery date has been set for August 2023 and trial date for January 2024.

https://storeys.com/richmond-atmosph...ilding-permit/

[officedweller]

Latest:

https://www.bccourts.ca/jdb-txt/sc/2...23BCSC1718.htm

I didn't realize that GEC was owed so much. From the background section:

As of early 2022, the major creditors secured against the Development were as follows and, presently, have the following order of priority:
a) Romspen owed approximately $176 million under a construction loan facility (the “Romspen Security”);
b) A group of lenders (the “2ML Lenders”) owed approximately $76 million; and
c) GEC Education City (Richmond) Limited Partnership (via its general partner, GEC (Richmond) GP Ltd.) (“GEC”), owed approximately $94 million arising from a deposit for the purchase of towers in the Development.

https://www.bccourts.ca/jdb-txt/sc/2...23BCSC1718.htm

[osirisboy]

Originally Posted by officedweller

Latest:

https://www.bccourts.ca/jdb-txt/sc/2...23BCSC1718.htm

I didn't realize that GEC was owed so much. From the background section:

https://www.bccourts.ca/jdb-txt/sc/2...23BCSC1718.htm

So what does that all mean?

[officedweller]

Originally Posted by osirisboy

So what does that all mean?

Romspen got its procedural orders, so the actions by the other debtors will would be tried together, and the whole process would be sped up, but still no bidding process for the sale of the lands until maybe after March 2024?

[3] Romspen seeks procedural orders with respect to the Related Actions. In summary, the order sought would: (a) provide that the Related Actions would be tried together in the context of the CCAA proceedings; and (b) set various deadlines for the filing of pleadings, listing of documents and examinations for discovery, consistent with case plan orders that have been regularly granted in this Court.

...

[16] The Monitor believes that an expeditious resolution of the claims between the CCAA Debtors/Guarantors, GEC and Romspen is important in relation to the future marketing and sale the Development. The Monitor states that it is important, if not essential, for the Monitor, who has conduct of the sales process, to have clarity on the relative priorities and amounts of the secured claims when the SISP is re-started or, at least, shortly thereafter.

[17] In particular, the Monitor is of the view that it will need to know which secured creditor(s) are “in the money” or the “fulcrum creditor(s)”, in terms of who is affected by a potential sale. The Monitor points out that a transaction may be other than entirely cash or may involve different structures that will require negotiations with the secured creditors who have a financial stake in the transaction. Finally, the Monitor states that a credit bid from secured creditor(s) is very possible and that, without knowing the relative amounts and priorities of the secured claims, any full or partial credit bid would be impossible.

[18] The Monitor anticipates filing an application for the new building permit by November 1, 2023 and the expectation is that it will be issued within a few months or by March 2024. Shortly thereafter, the Monitor anticipates re-starting the [sales and investment solicitation process (“SISP”)] which will hopefully garner bids toward a transaction.

[19] For the above reasons, the Monitor states that it would be preferable if the outstanding claims in the Related Actions were resolved by spring 2024 or shortly after the SISP is re-started.

[cairnstone]

Originally Posted by officedweller

Latest:

https://www.bccourts.ca/jdb-txt/sc/2...23BCSC1718.htm

I didn't realize that GEC was owed so much. From the background section:

https://www.bccourts.ca/jdb-txt/sc/2...23BCSC1718.htm

GEC owned the rental building and the office tower portion. The rental will turn into more foreign student housing at a premium.

Rompsten was the primary lender for the land purchase and also was the below grade lender who decided to withdraw from the project during covid to protect its investors

[whatnext]

Originally Posted by cairnstone

GEC owned the rental building and the office tower portion. The rental will turn into more foreign student housing at a premium.

Rompsten was the primary lender for the land purchase and also was the below grade lender who decided to withdraw from the project during covid to protect its investors

Romspen seems to be in a few pickles lately:

Private mortgage lender Romspen battles largest borrower, alleging defaults of $333-million amid redemption freeze
TIM KILADZE
PUBLISHED APRIL 17, 2023
UPDATED APRIL 19, 2023
FOR SUBSCRIBERS

Romspen Investment Corp., one of Canada’s largest private mortgage lenders, is locked in a court battle with its largest borrower after multiple loan defaults allegedly totalling $333-million – unpaid debt that has hindered its ability to fund investor redemptions.

Romspen has asked the Ontario Superior Court to appoint a receiver to take control of three properties that underpin the distressed loans. If approved, the receiver could sell the properties as it sees fit and the proceeds would allow Romspen to recoup some, or all, of the money it is owed. The three affected properties are located in Toronto: Woodbine Mall and Rexdale Mall, in the city’s northwest corner, and 1500 Birchmount Rd., in the city’s northeast corner.

The borrower, Issa El-Hinn, also known as Chris Hinn, is a commercial real estate investor and businessman. He originally defaulted on multiple Romspen loans in 2018, according to court filings, but signed a forbearance agreement with the lender at the time and has since sold six properties, remitting $222-million worth of proceeds to Romspen. The alleged $333-million still owed to Romspen is over and above the $222-million already remitted.

Of the three properties he has yet to sell, Woodbine Mall is considered the most valuable because it is large and located across the street from a proposed transit hub......

https://www.theglobeandmail.com/busi...rtgage-courts/

Private mortgage lender Romspen cuts monthly distribution for fourth time, cites ‘disappointing’ loan repayments
TIM KILADZE
PUBLISHED AUGUST 15, 2023
UPDATED AUGUST 16, 2023

Romspen Investment Corp., one of Canada’s largest private mortgage lenders, is cutting its monthly payout for the fourth time in little more than a year, citing weak loan repayments and a real estate market that hasn’t faced this much trauma since the 1990s.

On Tuesday, Romspen informed investors in its flagship Mortgage Investment Fund that their monthly distribution was cut to two cents a unit, down two-thirds from July, 2022.

As a private mortgage lender, Romspen raises cash from individual investors, then lends the money out to real estate companies, often in the form of short-term construction loans. The company has $2.7-billion in assets under management and has delivered an average annual yield of 7.3 per cent in its Mortgage Investment Fund over the past 10 years....

https://www.theglobeandmail.com/busi...on-for-fourth/

[cairnstone]

Originally Posted by whatnext

Romspen seems to be in a few pickles lately:

Private mortgage lender Romspen battles largest borrower, alleging defaults of $333-million amid redemption freeze
TIM KILADZE
PUBLISHED APRIL 17, 2023
UPDATED APRIL 19, 2023
FOR SUBSCRIBERS

Romspen Investment Corp., one of Canada’s largest private mortgage lenders, is locked in a court battle with its largest borrower after multiple loan defaults allegedly totalling $333-million – unpaid debt that has hindered its ability to fund investor redemptions.

Romspen has asked the Ontario Superior Court to appoint a receiver to take control of three properties that underpin the distressed loans. If approved, the receiver could sell the properties as it sees fit and the proceeds would allow Romspen to recoup some, or all, of the money it is owed. The three affected properties are located in Toronto: Woodbine Mall and Rexdale Mall, in the city’s northwest corner, and 1500 Birchmount Rd., in the city’s northeast corner.

The borrower, Issa El-Hinn, also known as Chris Hinn, is a commercial real estate investor and businessman. He originally defaulted on multiple Romspen loans in 2018, according to court filings, but signed a forbearance agreement with the lender at the time and has since sold six properties, remitting $222-million worth of proceeds to Romspen. The alleged $333-million still owed to Romspen is over and above the $222-million already remitted.

Of the three properties he has yet to sell, Woodbine Mall is considered the most valuable because it is large and located across the street from a proposed transit hub......

https://www.theglobeandmail.com/busi...rtgage-courts/

Private mortgage lender Romspen cuts monthly distribution for fourth time, cites ‘disappointing’ loan repayments
TIM KILADZE
PUBLISHED AUGUST 15, 2023
UPDATED AUGUST 16, 2023

Romspen Investment Corp., one of Canada’s largest private mortgage lenders, is cutting its monthly payout for the fourth time in little more than a year, citing weak loan repayments and a real estate market that hasn’t faced this much trauma since the 1990s.

On Tuesday, Romspen informed investors in its flagship Mortgage Investment Fund that their monthly distribution was cut to two cents a unit, down two-thirds from July, 2022.

As a private mortgage lender, Romspen raises cash from individual investors, then lends the money out to real estate companies, often in the form of short-term construction loans. The company has $2.7-billion in assets under management and has delivered an average annual yield of 7.3 per cent in its Mortgage Investment Fund over the past 10 years....

https://www.theglobeandmail.com/busi...on-for-fourth/

I think they are vulture lenders. As they own a good portion of the mountain behind Whatcom road. Apparently the developer defaulted so they ended up with the property and going to build out stacked townhouses which are all CFS(cold formed Steel) construction.