The Supreme Court of British Columbia has set a foreclosure date for more properties owned by Coromandel Properties, this time for the lands associated with a project planned for a site one block away from Nanaimo Station in Vancouver.
The project, referred to as "AC Nanaimo," is one of the 16 ongoing projects listed in Coromandel Properties' petition to the Supreme Court seeking creditor protection under the Companies' Creditors Arrangement Act (CCAA) earlier this year.
The lands for AC Nanaimo consist of an assembly of nine parcels of land: 2415, 2419, 2425, 2441, 2459, 2461, 2469, 2475, and 2483 East 26th Avenue. The foreclosure order does not list the addresses of the properties, instead listing nine parcel identifiers that match the above addresses.
The entire block bound by Trolly Place and East 26th Avenue consists of 10 parcels, with just the eastern-most parcel -- 2487 East 26th Avenue -- not included in the proceedings. Nine single-detached homes occupy these sites, all of which were originally constructed before 1989, with most being constructed in the 1950s, according to BC Assessment records.
According to the creditor protection petition, which lists all of Coromandel Properties' assets and liabilities, the nine properties were all purchased from different owners in 2021 for a total purchase price of $29.6M.
The petition notes that Coromandel Properties assembled the site under the assumption that the area would eventually be identified for high-density transit-oriented development, due to its proximity to the Expo Line SkyTrain's Nanaimo Station.
The lands are legally owned by AC Nanaimo Nominee Ltd. (formerly known as Ansen Nanaimo 26 Development Bare Trustee Ltd.) and beneficially owned by AC Nanaimo Investment Limited Partnership, with AC Nanaimo Investment GP Ltd. as the general partner.
According to the petition, 50% of the limited partnership company and 51% of the general partnership company are owned by Align BC Properties Corp, also known as Align Properties, which is the North American arm of Chinese real estate developer Xiangli Group.
The foreclosure proceedings were initiated in April by two of the secured lenders on the project: Lanyard Investments Inc. -- also known as Lanyard Financial Corporation -- and Fisguard Capital Corporation.
On June 15, the Supreme Court granted the orders sought by Lanyard and Fisguard, including an order nisi that recognizes the amount Coromandel Properties owes for the AC Nanaimo project at $12,950,128.11, as well as a redemption deadline of December 15, 2023.
The lending agreement was signed in March 2021 for a principal amount of $12.3M.
If Coromandel Properties does not pay the amount in full -- including interest accruing at a daily rate of $4,146.80 -- by the redemption date, Lanyard and Fisguard can then apply for an order absolute, which would directly transfer ownership of the properties to Lanyard and Fisguard if granted.
In early May, the BC Supreme Court also set the foreclosure date for a six-parcel assembly near Oakridge Centre that Coromandel Properties had planned to redevelop into two 18-storey residential buildings. The final redemption date for those properties was set at June 30.