- STOREYS.COM - A La Une - 09/07/2024 20:10

Buyer Found For Vandyk’s King’s Mill Site Under Receivership

It’s been four months, nearly to the day, since the Ontario courts granted formal approval for the sales of 10 Vandyk Group sites across the Greater Toronto Area. Of those sites approved for sale was 15 Neighbourhood Lane in South Etobicoke, which is home to a partially constructed, 10-storey mid-rise known as The King's Mill. This past spring, Jones Lang LaSalle (JLL) Real Estate Services introduced “100% freehold interest” in the property to market, and it appears that their efforts have brought in a prospective buyer.According to a June 27 motion and July 2 report, a “proposed sale transaction” between the receiver, KSV Advisory, and PAD Investments Ltd., will see PAD “purchase substantially all of the property, including the beneficial interest in certain of the property held by Vandyk-Backyard Humberside Limited, an affiliated company of Vandyk-King’s Mill.”The filings also state that “a distribution from the proceeds of the transaction is proposed to be made to MCAP Financial Corporation,” as they are the senior secured creditor for the King’s Mill site. “The transaction is the culmination of a successful sale process, represents the most certain, highest recovery available to stakeholders, and should be approved by the court.”Receivership proceedings involving The King’s Mill site go back to December 11, 2023, which is when the Ontario courts issued a receivership order over Vandyk-King’s Mill and all of its properties, assets, and undertakings, including the project 15 Neighbourhood Lane. That order, which went into effect on January 8, 2024, was granted on the basis that Vandyk-King’s Mill owed approximately $40.2M — not to mention, accruing interest — to MCAP at the time. In the next step in the receivership process, the courts granted the Sale Process Order on March 8, which led KSV to retain JLL to list the property for sale. As such, JLL launched the sales process on March 19, with a bid deadline set for May 7. The court filings from June and July explain that 10 parties submitted their letters of intent, and three rounds of bidding were conducted. An Asset Purchase Agreement in favour of PAD Investments was executed on June 11.Project In Final Development PhasePAD Investments will be coming onto the project at an interesting time. As described by JLL when they began marketing the property this past spring, King’s Mill is on the cusp of its third and final phase of development, and upon completion, it will encompass 186,446 sq. ft of residential gross floor area and 234 residential units of varying sizes and layouts.“The site has undergone significant work to date, including substantial completion of the building structure, which topped out at 10 storeys and has underground parking in place,” JLL's listing said. “A purchaser will have the opportunity to complete the development within an accelerated timeline, wherein project risks are significantly mitigated.”JLL also noted at that time that The King’s Mill condominium is approximately 91% sold out to date, and that “sales contracts can be maintained or cancelled at the incoming developer’s discretion.”On June 28, a notice was sent out from KSV to the buyers of The King’s Mill project informing them of the receivership, as well as the termination of any pre-sale purchase agreements. “The proposed purchaser has advised that it will not be assuming the purchase agreements pursuant to which the company agreed to sell residences to home buyers,” the notice said. “The proposed court order approving the transaction provides that the Receiver will be authorized and directed to terminate and disclaim the Pre-Sale Purchase Agreements.”KSV further advised that “the deposits paid by homebuyers are fully insured under the Westmount [Guarantee Services Inc.] policy, and that homebuyers will be able to recover the full amount of their deposits paid.” Further information on the deposit return process will be made available to the homebuyers at a later date.