As the Vandyk Group of Companies continues to come apart at the seams, real estate investors will soon have their pick of the development group's portfolio.
Earlier this month, the Ontario courts granted formal approvals for the sales of Vandyk-affiliated sites across the Greater Toronto Area, including The King's Mill, 41 Wabash, and Grand Central Mimico (in Toronto), UPtowns and Heart Lake (in Brampton), and The Ravine and Lakeview DXE Club (in Mississauga).
There are also three numbered companies named in the court documents, one of which is 2495065 Ontario Inc., which is linked to 39 Newcastle Street. The other: 1000318652 Ontario Inc., which is an unzoned site at 48, 50, and 52 Newcastle Street, and purchased by the same shell company behind 41 Wabash. The third numbered company is 2402871 Ontario Inc., which is linked to 327 Royal York Road in Etobicoke. Notably, all of these addresses are just a stone’s throw away from the Grand Central Mimico site.
Of all of those sites, construction has commenced at Uptown (approximately 28% constructed), Grand Central Mimico (early stages of construction/excavation only), and Kings Mill (substantially constructed).
All sites named in the March 8 sales process approval — each of which is linked to a single-purpose real estate development company under the Vandyk Group umbrella — have been mired in receivership proceedings for months now, and six separate receivership orders were granted by the courts on November 14, 2023, December 11, 2023, December 12, 2023, January 18, 2024, and January 23, 2024.
With companies under the Vandyk Group umbrella owing more than $350M to various lenders — including KingSett Mortgage Corporation, Dorr Capital Corporation, MCAP Financial Corporation, Otéra Capital Inc., and Fiera FP Real Estate Financing Fund — selling the assets is the natural next step to help recoup at least some of those funds.
The court documents show that the sales of The King's Mill and Grand Central Mimico properties will be handled by Jones Lang LaSalle Real Estate Services, the sales of The Ravine and Heart Lake will be jointly handled by TD Cornerstone Commercial Realty and CBRE, CBRE will handle the sale of the site associated with 2495065 Ontario Inc., and Scotiabank Capital will handle the sale of the site associated with 2402871 Ontario Inc. Colliers Macaulay Nicolls will be selling the 41 Wabash site, as well as the sale of the site associated with 1000318652 Ontario Inc.
The brokerages that will handle the sales of the Uptowns and Lakeview DXE Club projects have not been specified.
As for what’s next: the respective brokerages will work with the receiver, KSV Advisory, to “prepare marketing materials and identify prospects” by March 13, 2024, March 18, 2024, or March 29, 2024 (depending on the company). In the next phases of the sale process will involve the marketing and bidding processes, with bid deadlines estimated to be between April 10 and May 6, 2024 (again, depending on the company).
