Embattled Vancouver-based real estate developer Coromandel Properties is the subject of a new civil suit filed in the Supreme Court of British Columbia last week by Woodbourne Capital Management, according to court documents obtained by STOREYS.
Woodbourne Capital Management, who has headquarters in both Colorado and Toronto, invests on behalf of various institutions such as public and private pension funds, endowments, and foundations, and calls itself "a leading investor, operator and developer of apartments, seniors' housing, student housing, self-storage, and other real estate assets located predominantly in urban areas across Canada."
Woodbourne was a secured lender for the upcoming Southview Gardens redevelopment project by Coromandel Properties in the Champlain Heights neighbourhood of East Vancouver. According to the court filings, Coromandel Properties owed Woodbourne $8,319,984 as of January 20, 2023, with interest accruing at a daily rate of $3,302.49.
Coromandel Properties has defaulted on the loan under a 2019 agreement that was later amended in both 2020 and 2022, with Jun Chao Mo and Zhen Yu Zhong -- along with Coromandel Holdings Ltd. -- as the guarantors.
Zhen Yu Zhong, also known as Jerry Zhong, is the sole director and officer listed for each of the general partners and registered owners of Coromandel's projects, according to Coromandel's petition to the court seeking creditor protection, filed earlier this year. It's unclear what position Jun Chao Mo holds.
Woodbourne issued a demand for full repayment on January 25, but the guarantors have "refused or neglected to pay the amounts owing following demand," according to the civil suit.
The Southview Gardens on 3240 East 58th Avenue in East Vancouver. (Goodman Commercial)
The Southview Gardens was a project that had yet to commence. Located at 3240 East 58th Avenue, the 6.58-acre single-parcel site consists of 140 rental homes within one apartment building and multiple townhouse complexes that were originally built in 1973, according to BC Assessment records. It is currently being managed by BentallGreenOak.
Coromandel Properties acquired the Southview Gardens site for just over $72M in March 2017, according to court documents and Goodman Commercial, who brokered the deal. The site is legally owned by Southview Gardens BT Ltd. and beneficially owned by Southview Gardens Limited Partnership.
According to court documents, the property generates approximately $224,000 in rental income per month. Prior to seeking creditor protection, Coromandel was actively exploring different options to redevelop the site, with the possibility of 1,150 homes -- 920 market rental units and 230 below-market rental units -- across four six-storey buildings. No formal applications appear to have been submitted to the City of Vancouver.
Woodbourne was one of three secured lenders for the Southview Gardens project, for which Coromandel had a total of approximately $80M in secured obligations. Of that $80M, Peakhill Capital Ltd. is owed the principal amount of $50,807,830 plus daily interest and Cenyard Pacific Development Inc. is owed the principal amount of $21,420,000 plus daily interest.
At $8,319,984 plus daily interest, Woodbourne's loan to Coromandel Properties is the smallest of the three lenders, but is first-ranking, and Woodbourne is seeking the amount owed, accrued interest to the day of payment, and costs.
STOREYS reached out to both Woodbourne and Woodbourne's lawyer for the case, but neither responded as of the publishing of this article.