The Company’s principal asset was land municipally described as 250 and 252 Phillip Street, Waterloo, Ontario and a 20-storey multi-residential student housing facility known as Blair House, municipally described as 256 Phillip Street, Waterloo, Ontario (collectively the “Property”). The Property was comprised of a tower in early-stage construction, raw land and an operating student residence. In addition, fifteen construction lien claims were registered on title to the Property for tens of millions of dollars. The secured debt on the Property totalled approximately $90 million and was owed to a Chinese-based lender, China Machinery Engineering Corp. (“CMEC”).
The Company was unable to service its debt and, accordingly, CMEC brought a receivership application.
KSV was the court-appointed receiver of the Property. The primary purpose of the receivership proceedings was to, among other things, conduct an orderly disposition of the Property.
As Receiver, we oversaw the Blair House operations and developed a sale process for all properties. We retained a realtor with extensive knowledge of the student housing business and relationships with the most active developers across Canada. Concurrent with planning for the sale process, we worked with the Company’s stakeholders to refinance CMEC’s mortgage and to repay all liens and other priority amounts. These efforts were successful, the business exited receivership and the project is presently being developed.