The Mondria 1 condo project in Clarington, Ontario was placed under receivership over the summer, according to filings in Ontario Superior Court, and the series of events that resulted in the receivership is more unique than most.
The project is located at 1607 King Street East and was being developed by Toronto-based Monde Development Group, which was developing a six-storey condo building with 89 units. The property, which was formerly occupied by the Pine Ridge Motel, is beneficially owned by Monde through Monde Development Group Inc.
For the project, the developer obtained a first-ranking mortgage in February 2022 from Meridian Credit Union in the principal amount of $31,000,000, with the interest rate set at Meridian’s prime rate + 2.00% per annum with a minimum floor rate of 4.45%.
Meridian also provided a letters of credit facility up to $475,778 with interest at Meridian’s prime rate + 2.00%, a business credit card facility up to $100,000 with interest at 19.50%, plus a bridge loan in the amount of $3,600,000 with interest at Meridian’s prime rate + 8.00% and a floor rate of 13.95%.
The loan was guaranteed by Majid Hamid and Hina Hamid, and a second-ranking mortgage was held by non-bank real estate lender MarshallZehr in the amount of $14,126,000, which administers the credit facility on behalf of Ducimus Capital Inc. according to court documents.
Monde Development Group and MarshallZehr announced the loan in April 2022, with the announcement noting that 80% of the units had been pre-sold.
The Water Damage Incident
According to the receivership application filed by Meridian Credit Union on June 1, 2026, water began discharging from the firehose cabinet on the fourth floor on December 1, 2025 and “resulted in significant water damage to the interior finishes within most units and common areas from the fourth floor to the ground floor.”
The next day, Monde retained Restoration Aid Inc. to assist with water damage mitigation and restoration services. They then filed an insurance claim with Chubb Insurance Company of Canada, which retained McLarens as an adjuster to conduct the site investigation, which in turn retained T. Smith Engineering Inc. to conduct an engineering inspection of the damage, which found that “the water discharge…resulted in significant water damage to walls, ceilings, floor finishes, cabinetry, doors and in multiple units and corridors.”
Meridian and MarshallZehr engaged XALT Claims Management, which provided a preliminary estimate that a complete restoration of the project would take approximately six to eight month and require over $14 million to complete.
“Meridian is not prepared to advance further funds to perform the Restoration Work unless a Receiver is appointed and there is a clear path to the completion of the Project,” said Meridian in their receivership application. “I understand from my discussions with Ducimus that they are similarly unwilling to advance further funds.”
Mondria One, set for 1607 King Street East in Clarington, Ontario. (ICON Architects Inc., Monde Development Group)
According to Meridian, Monde has been in default of their loan agreement as it has not been able to service the loan, last making an interest payment in January 2025.
Because of the water damage incident, the cost to complete the project now also exceeds the available financing and Meridian says Monde “does not appear to have the capital to fund the Project cost to complete.” Meridian adds that the water damage incident also has an impact on the ability of Monde to close the presales.
Meridian issued a formal demand for payment on March 5, 2026 and said they were owed $38,171,468.54 as of June 1, with interest continuing to accrue.
“Meridian has lost confidence in management of the Debtor,” the credit union said in its application. “Meridian has provided the Debtor with more than sufficient time to address the defaults and to repay the Indebtedness. In addition to failing to repay the Indebtedness, the Debtor has provided no path forward that would result in it obtaining financing to complete the project or otherwise repay the Indebtedness.”
Various contractors have also registered liens against the property. The liens were filed by Praxy Cladding Corp, 2037012 Ontario Inc., Restoration Aid Inc., and York1 Waste Solutions Ltd., and total to $1,428,850.
The Receivership
Meridian Credit Union’s receivership application was granted by the Ontario Superior Court on July 7, 2026 and the endorsement from the judge presiding over the case revealed several more details.
According to Justice Myers, Monde ran out of money by late-2024 and cost overruns surpassed $8 million by April 2025. Tradespeople were not paid and construction subsequently slowed to a halt. The lenders were also concerned because Monde reported the project as 99% completed in January 2025, but then reduced the estimate to 90% in April 2025.
Ducimus Capital ultimately agreed to fund the completion of the project and brought in their own general contractor, CPC, and construction resumed until the water damage incident in December 2025, which Justice Myers said was caused by a vandal who entered the building at night. Myers added that the insurance claim Monde filed with Chubb was for $15 million, but Chubb has yet to pay and there is no certainty that they will pay.
“76 of the 89 proposed units in the building are sold,” said Justice Myers. “All parties agree that they want to try to keep those agreements alive if possible. That means getting on with completion is a prime goal.”
With the receivership now in effect, the stakeholders will have the chance to do that.
