Maroc - STOREYS.COM - A La Une - 15/Jan 19:51

Port Moody Bayrock Terrace Project Under Receivership Finds Buyer

After being placed under receivership in July, the Bayrock Terrace project planned for Port Moody has been sold to a new developer, according to filings in the Supreme Court of British Columbia.The Bayrock Terrace project was planned for 3000 Henry Street in Port Moody, a 4.34-acre site comprised of four vacant parcels that have no address. For the site, located just near the École Moody Middle School of the Arts at 130 Buller Street, an 11-storey building with 189 units was being planned by Vancouver-based Aultrust Financial, which owned the property under 0790857 BC Ltd. and 3000 Henry Street Limited Partnership.The ReceivershipAs first reported by STOREYS in August, the receivership application was filed in June 2024 by KingSett Mortgage Corporation, also known as KingSett Capital, pertaining to a first-ranking mortgage agreement reached with the owners in September 2021 for the principal amount of $12,350,000.According to KingSett Capital's application, the owners failed to make their monthly interest payments on both February 1 and March 1, 2024, defaulting on the mortgage agreement. KingSett then issued a formal demand for payment to Amin Eskooch and Navid Morawej — the guarantors of the loan and directors of the ownership entities — on March 8, but the debtors were unable to pay.Per their mortgage agreement, KingSett is entitled to appoint a Receiver over the mortgaged properties in the event of a default, and the debtors did not object, agreeing in April to the appointment of a Receiver, according to KingSett.As of June 6, the outstanding amount owed is $13,501,453.28, plus interest. According to the Receiver, there are no other secured creditors on the project besides KingSett, but there are many unsecured creditors — the City of Port Moody, Canada Revenue Agency, and various consulting firms, among others — with a total outstanding amount of $1,334,184.KingSett Capital's application to appoint a Receiver over the project was granted by the Supreme Court on July 29. The Bayrock Terrace project planned for 3000 Henry Street in Port Moody, British Columbia. / Colliers The SaleAccording to the Receiver, work on the Bayrock Terrace project began around 2017, but was continuously delayed. After project stakeholders became frustrated with the lack of progress, the owners made an attempt to sell the project in late-2021 and the property was listed by Colliers in January 2022. A joint venture partner was found, but the limited partners of 3000 Henry Street Limited Partnership rejected the proposal. The project sat a standstill throughout 2023 as the limited partners refused to provide further funding, according to the Receiver, until the sales effort resumed in January 2024. A buyer was then found in February and the offer was accepted, but ultimately fell through and expired. After the receivership came into effect, the court-ordered sales process began in late-October and the 3000 Henry Street property was listed for sale by Casey Weeks, Morgan Iannone, and Madison Bourgeois of Colliers. The sales process launched with a stalking horse bid — a reserve bid that sets the floor for other offers — by 1496619 BC Ltd. for a purchase price that equates to the sum of the various priority fees and the amount owed to KingSett Capital. As of September 19, KingSett Capital was owed $14,031,523.67, plus interest.According to the Receiver, eight parties — including Symphony Homes, Anthem Properties, and Greystar — progressed to the point of signing non-disclosure agreements, but no parties ultimately submitted a formal offer, and the stalking horse bid by 1496619 BC Ltd. was accepted. The Receiver did not provide details regarding 1496619 BC Ltd., but ownership is expected to be assigned to ENSR 3000 Limited Partnership.On December 17, the Supreme Court approved the transaction via a reverse vesting order, which allows the shares of 0790857 BC Ltd. to be sold to the buyer instead of the property being transferred.