Maroc - STOREYS.COM - A La Une - 17/Jun 20:52

Foreclosed West Field Business Centre In Surrey Listed For Sale Over $50M Debt

The large campus-like building at the intersection of 104 Avenue and 142 Street in Surrey has been listed for sale as a result of ongoing foreclosure proceedings, according to court filings in the Supreme Court of British Columbia and a listing. The commercial building, known as The West Field or 104 Avenue Centre, sits at 14178 104 Avenue, about midway between Surrey Central Station and Guildford Town Centre, and it has been an object of fascination among locals for years, as it has been vacant ever since it was constructed in 1998.The building was formerly owned by Donald Pitt, a lawyer in Arizona who co-founded the Phoenix Suns NBA team. In early-2022, local media reported that the building had been sold to a man named Kuldeep Kumar Bansal, whom the Globe & Mail described in an April 2019 investigation as an immigration consultant and international recruiter that "preyed upon the weak" and whom the College of Immigration and Citizenship Consultants later found to have committed several instances of professional misconduct.Bansal also purchased the Westfield Country Club, located at 7778 152 Street in Surrey, in January 2022, according to the club's website.The ForeclosureThe foreclosure proceedings were initiated in August 2023 by GC Capital Inc. and Kismet Capital Ltd. against 622013 BC Ltd. — the legal owner of the property — and Westfield Business Centre Ltd. — the beneficial owner of the property that was previously named 1267541 BC Ltd. In their petition to the court, GC Capital and Kismet Capital said that they entered into a mortgage agreement with the owners on April 25, 2022 for the principal amount of $30M that would mature on May 25, 2023. That mortgage charge was registered on title for 14178 104 Avenue, but also 14019 104 Avenue, a vacant piece of land a short walk away. The 14019 104 Avenue property is legally owned by TDP Holdings Ltd. — also listed as a respondent — and beneficially owned by the aforementioned Westfield Business Centre Ltd. Also listed as respondents in the case are four individual mortgagors and several other entities — including Kuldeep Bansal — that acted as guarantors, with six other properties in Surrey — 13143 56 Avenue, 6040 128 Street, 10731 132A Street, 5194 184 Street, 18552 51B Street, and 18628 51B Street — secured as collateral. After the owners defaulted on the mortgage agreement, GC Capital and Kismet Capital issued a formal demand for payment on July 17, 2023, when the outstanding amount had reached $30,660,330.16. A photo of 14178 104 Avenue in Surrey.(Colliers)On November 2, the Supreme Court granted an order nisi that confirmed the debt at $32,917,244.88 and set the redemption date — the date by which the debtors can pay the outstanding amount in order to halt the foreclosure — at May 2.The mortgage held by GC Capital and Kismet Capital is first-ranking. Subsequent charges on title include one held by 1063466 BC Ltd. pertaining to a $4M loan agreement and one held by 0938080 BC Ltd. pertaining to a $14M loan agreement, bringing the total amount of debt on the property to over $50M. 1063466 BC Ltd. initiated separate foreclosure proceedings against the property in December, while 0938080 BC Ltd. was eventually added to the proceedings initiated by GC Capital and Kismet.After the redemption date passed without the outstanding amount being paid, GC Capital and Kismet applied for conduct of sale to allow them to sell the property to recover their debt, but exclusive conduct of sale was granted to 0938080 BC Ltd. first, for three months beginning on May 31. In foreclosure proceedings, it is common for lower-ranking charge holders to be granted conduct of sale ahead of higher-ranking charge holders.The Property0938080 BC Ltd. has since retained Mike Grewal, Bill Randall, and Dylan Sohi of Colliers to list and sell 14178 104 Street. No asking price has been listed. BC Assessment values the property at $114,181,000 and Colliers notes in its sales brochure that the property is "one of the last large-scale future redevelopment sites in the Guildford Plan which requires no additional assembly" and has "flexible zoning allows for a wide array of allowable uses," but there is market evidence that the property will not be able to secure a price close to that valuation. In their application for conduct of sale, 0938080 BC Ltd. noted that the property "has never in the past two decades received an offer above $100,000,000." They also confirmed that the building has been vacant for over two decades and that there is "approximately $10,000,000 in upgrades that need to happen for the 104 Property to be up to code."In its listing, Colliers notes that a building permit allowing for "base building upgrades" has already been approved. The building consists of 271,000 sq. ft of space over four levels and underground parkade with 675 parking spaces. The lot spans nearly 3.66 acres.The sale of the property will require final approval from the Supreme Court.