2 more Vancouver condo projects in receivership
Two more condominium projects in the Vancouver area have run into financial difficulties, leaving dozens of purchasers in limbo.
The Chandler Development Group Inc.'s H&H Yaletown project in Vancouver, and the Garden City building in Richmond have been placed in the hands of a receiver, the CBC has learned.
Almost 250 condominiums in those developments have been presold. Until this week, purchasers had no idea the developer was in trouble.
News that the Chandler Development Group is facing financial challenges comes on the heels of another developer, the Eden Group of Companies, citing financial difficulties for a decision to halt its third development in Vancouver in less than four months.
The Sophia on E11th Avenue and Sophia Street in the city's Mount Pleasant area went into receivership on Feb. 18 and the receiver, The Bowra Group, has 21 days to submit a plan to the courts.
Bowra has also been appointed to make sure that the H&H and Garden City projects get finished, builders get paid, and owners get their condos.
H&H is a 192-unit building, while Garden City is comprised of 108 units, according to a receiver manager's report to the B.C. Supreme Court.
Both projects were scheduled to be completed by the end of June 2008.
"The company was running into cost overruns, they were running out of cash and I think the lenders wanted to complete the project,'' said Bowra Group President David Bowra.
"But they weren't convinced it could be completed without the assistance of a third party. So they decided to apply for a receiver to be appointed."
The receiver has discovered that 23 condos in the Chandler Development Group projects were allegedly sold to insiders at prices well below market value, Bowra said.
They may get to keep their condos, but will likely have to pay today's prices, he said.
It appears that the other buyers will get their condos for the price paid as there is enough money available to finish the job.