More than $10M owed to lenders for 3-tower high-rise development in Brampton
Published February 21, 2024 at 10:48 am
Plans to bring a trio of high-rise towers with more than 1,000 residential units to Brampton have hit a $10-million stumbling block as the property owner has defaulted on a loan.
Last fall, the city approved zoning bylaw amendments for a three-tower housing development at 253 Queen St. East.
At 32, 33 and 38 storeys tall, the high-rise project was expected to bring a combined 1,026 residential units to Brampton along with office and retail space.
But court documents show the property owners have defaulted on their loan, leading debtors to demand more than $10,447,000 in payments and a court decision to put the company in receivership.
The documents show that the Homedale-Eagle Corporation sold the 1.57-hectare development site near Queen Street and Hansen Road to 253 Queen St. East Inc. for $15.5 million in 2018. But the owners missed a $400,000 quarterly interest payment in November, part of which had already been deferred from August.
The loan was taken out in May 2018 and included a five-year term with interest at 3 per cent per annum under a first-ranking vendor take-back mortgage. The documents show the property is also under a subordinate mortgage of $2 million registered in favour of Sky Mortgage Corporation, which “is now also in financial default.”
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Homedale has made a “formal demand for payment of $10,447,829.55,” and Ontario Superior Court Justice Michael Valente has appointed Rosen Goldberg Inc. as receiver of the owner’s lands and will oversee the sale of the property.
The project was designed by BDP Quadrangle for U Developments, and Valente said in his decision that the proposed development plan “is substantial and complex and will require considerable skill and expertise to market and sell effectively.”
