Rendering: BuzzBuzzHome
Three high-rise projects by Toronto-based luxury condo developer, Cresford Development Corporation, have entered receivership, according to legal documents released to the public today by PricewaterhouseCoopers (PwC).
On Friday, March 27th, PwC was appointed as the receiver and manager of assets for three of Cresford’s downtown properties, including The Clover on Yonge, Halo Residences and 33 Yorkville. The application for receivership was made by bcIMC Construction Fund Corporation and bcIMC Specialty Fund Corporation. Otéra Capital is also named in the 33 Yorkville documents. All three of the developments were under construction prior to entering receivership.
The Clover on Yonge is currently set to top out at 44 storeys while Halo Residences will reach 45 storeys. The two towers that comprise 33 Yorkville are 71 and 47 storeys. Taken together, the three developments account for well over 1,000 units added to Toronto’s housing stock.
No details or decisions were released by PwC on the status of existing pre-construction purchaser contracts with any of the properties. All three were fully sold out, according to listings on BuzzBuzzHome.
“No decisions have been made in respect of these contracts,” states an online notice from PwC directed at buyers. “In due course once decisions have been made on the path forward for each of the projects, you will be contacted by the Receiver regarding the status of these contracts.”
Purchasers of any of the Cresford projects have been asked to contact PwC with details of their contract, by sending an email to halo.clover@pwc.com or project.yorkville@pwc.com.
In late February, a former Cresford chief operating officer filed a lawsuit against the company, seeking $50 million in damages. Maria Athanasoulis cited in her statement of claim to the Ontario Superior Court of Justice that the founder of Cresford Developments made “significant misrepresentations to its lenders” as part of a “cash crisis” that resulted in her alleged wrongful dismissal.
According to reporting from the Toronto Star, Athanasoulis was constructively terminated after she “pressed” Cresford’s founder, Daniel Casey, to make equity investments he was obligated to make by contract. Casey had been allegedly taking “secret loans” from high-interest funds from OTB Capital, as per Athanasoulis’ suit. Casey and Cresford denied any unusual borrowing in their statement of defence, rebutting that Athanasoulis was, “aware of the manner in which Cresford raised its equity requirements for the projects.” In response, a countersuit has been filed, according to the Toronto Star.
In the same lawsuit, Athanasoulis claimed that the three projects now in receivership were facing financial hardship by a shortfall of $150 million as a result of Casey’s decision making. The allegation also named YSL Condos, one of Toronto’s tallest buildings currently under construction near Yonge and Gerrard streets. At this point, YSL Condos has not been listed within PwC’s receivership documentation.
