$363M in debt leads to receivership for developer of 3 properties in Mississauga

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Published June 4, 2024 at 12:04 pm

759 winston churchill boulevard

Three properties in Mississauga have fallen under receivership after the owner racked up millions of dollars in debt.

The properties at 759 Winston Churchill Blvd., 688 Southdown Rd., and 2226 Royal Windsor Rd. are owned by development companies known as Churchill GP, Southdown GP and Royal Windsor GP, according to court documents.

Michael Moldenhauer is listed as director of the companies, court documents state.

KSV Restructuring Inc. was appointed receiver and manager of the properties by court order on May 30. KSV is an advisory and restructuring firm, which provides advice to profitable and distressed companies.

The 47.15-acre property at 759 Winston Churchill Blvd. was to be developed into three industrial buildings, according to a sworn affidavit from Daniel Pollack, executive director, portfolio management, of KingSett Mortgage Corporation.

Currently, one of the buildings is complete and fully leased, one is under construction and one has yet to have construction start.

One building at 759 Winston Churchill Blvd. is listed for lease through Avison Young. According to the listing, the building will have up to 472,245 square feet available and be ready for occupancy in 2024. It’s described as a new, state-of-the-art distribution facility.

The other two properties are both zoned for industrial uses but it appears the property owner wanted to rezone the lands for residential developments.

The 688 Southdown Rd. property is approximately 91 acres, of which 80 acres are developable. Pollack said it is unclear what exactly has or has not been completed to prepare the property for residential uses. To KingSett’s knowledge, no construction has started.

The approximately 74.5-acre property at 2226 Royal Windsor Dr. was also to be re-zoned for residential development. KingSett believes the re-zoning efforts have not yet started or have not materially advanced. And it appears there is no active construction on the land.

Millions of dollars in loans remain outstanding on the properties.

As of Jan. 11, 2024, $328,327,905.79 was outstanding for Churchill and Southdown, and as of Jan. 22, 2024, $35,252,643.84 for Royal Windsor, the affidavit states.

The development companies failed to pay monthly interest payments, in some instances for more than four months.

KingSett “has lost all confidence in the Debtors’ management to properly address liquidity issues or to develop an acceptable refinancing or restructuring plan…,” the documents state.

Under receivership, KSV Restructuring Inc. may take control of the properties, attempt to recover loan amounts outstanding, deal with lien claims, and lease, sell or liquidate parts of the property.

The full receivership court order can be found here.

Lead photo of 759 Winston Churchill Blvd.: Google Maps

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