Go-To Developments Holdings Inc. and several related companies and partnerships (“GTD”) were developers of nine residential real estate projects in Ontario, each of which was in the early stages of development.
The largest development is a planned 48-storey, 158.6-meter mixed-use building incorporating residential, office and commercial uses located at the corner of Spadina and Adelaide in Toronto.
In December 2021, the Ontario Securities Commission (“OSC”) brought an application for KSV’s appointment by the Court as receiver and manager (the “Receiver”) of the real properties and other assets owned by GTD. The application was precipitated by an investigation by the OSC related to certain transactions and activities by the principal of GTD. The Court issued an Order appointing KSV as Receiver, which was upheld by the Court of Appeal for Ontario.
KSV reviewed the attributes of each project and discussed their status with the architects, planners and other consultants that had been retained to develop them. KSV then designed a sale process, in consultation with two national realtors, the mortgagees registered on title to the development lands who are collectively owed in excess of $110 million, and input from a leading real estate advisory firm. The sale process, which was approved by the Court, targeted an extensive list of prospective purchasers, including local, national and international builders, developers and investors.
In addition to conducting a sale process, KSV is addressing numerous other issues as part of this mandate, including matters related to:
a) pre-construction condominium unit purchase agreements and the corresponding deposits which are subject to oversight by Tarion, the Ontario new homes regulator;
b) a comprehensive claims process to determine the claims by creditors and investors against each of the companies and partnerships that form part of GTD;
c) litigation against GTD commenced prior to the receivership; and;
d) a series of transactions completed prior to the receivership for certain of the projects which may have affected the purchase price of certain of GTD’s real properties to the detriment of stakeholders.