After spending over a year under receivership, a large office complex in North York has officially been sold, and the complex is now set to undergo a transformation.
The office complex is located at 95 and 105 Moatfield Drive in the Don Mills neighbourhood, on the western side of the Don River near the intersection of Don Mills Road and York Mills Road.
The property was formerly owned by Slate Office REIT, which acquired it as part of a portfolio of seven assets acquired from Cominar REIT in 2018. Slate then sold it in late-2022 for $97 million to Visionary Holdings, an education technology company that traded on the NASDAQ.
The complex sits on a 6.56-acre parcel and was originally constructed in 1982, with 165,315 sq. ft of space in the five-storey building at 95 Moatfield Drive and 247,953 sq. ft of space in the 11-storey building at 105 Moatfield Drive, for a total of 413,268 sq. ft. It’s also home to 282 surface parking spaces and 972 underground parking spaces.
The Receivership
The Moatfield Drive complex was held by Visionary Holdings under 13995291 Canada Inc., which became the subject of a receivership application filed in Ontario Superior Court on August 1, 2024 by the Bank of China (Canada) pertaining to a first-ranking mortgage in the principal amount of $60,000,000, with interest set at 1.0% above the BOCC Prime Rate.
The Bank of China said the loan was used to fund the acquisition and that they issued the borrower a notice of default on July 5, 2024. Defaults included the registration of a $5 million mortgage without the Bank’s consent, the Canada Revenue Agency making a payment demand for $1.8 million, failing to pay property taxes, allowing a construction lien to be registered, and failing to make payments to the Bank.
The Bank of China said they were owned $59,753,654.04 as of July 4, 2024, as was reported by STOREYS by STOREYS in September 2024.
In an affidavit along with the receivership application, the Bank’s Deputy Manager of the Risk Management Donald Bridge said a significant reason for the application — beside the defaults — is the steep decline in property value, even in the two years since it changed hands.
“This apparent rapid decline in market value is of considerable concern to BOCC, given that the significant majority of BOCC’s collateral value lies in the Real Property,” said Bridge, who added that the complex was home to 15 tenants, the most notable of which was Hitachi Rail GTS Canada Inc., which occupied 53% of the entire complex. Other tenants included various education-related companies, some of which were affiliates of Visionary.
The Sale Process
105 (left) and 95 (right) Moatfield Drive in Toronto. (Cushman & Wakefield)
The receivership application was granted on August 27, 2024 and the Moatfield complex was subsequently listed for sale by Andrew Morrow, Matthew Rakhit, Dan Rogers, and Mike Brown of Cushman & Wakefield on an unpriced basis.
The original hope was to sell it to Crown agency Infrastructure Ontario (IO), which announced in 2024 that it was looking to acquire an unspecified number of office buildings in the City of Toronto. The Moatfield complex was submitted as a candidate and progressed through multiple stages, but ultimately not chosen by IO.
Cushman & Wakefield then marketed the property beginning March 2025, with 23 parties signing confidentiality agreements and 10 parties progressing to the point of touring the property. Six parties ultimately submitted offers, which were then whittled down and refined until the court-appointed Receiver formally entered into an agreement in November with the winning bidder, an entity only identified as 1001198779 Ontario Inc.
The court approved the transaction on December 11 and the transaction was scheduled to close by March 19, 2026. However, the purchaser then made two extension requests, extending the closing date to April 30 and then June 4.
“During the extension period, the Receiver facilitated additional information requests from the Purchaser,” said the Receiver in a report to the court. “In addition, in consultation with BOCC, the Receiver addressed and resolved certain issues relating to the Moatfield Property raised by the Purchaser by negotiating adjustments to the purchase price.”
In a report on July 14, the Receiver confirmed the transaction closed on June 4 and said the total sales proceeds were $39,683,728, which likely includes fees and adjustments. Transaction reports seen by STOREYS show the true purchase price as $30,000,000.
Sunray Group
Those transaction reports also identified Toronto-based hospitality-focused real estate developer Sunray Group as the purchaser, which was confirmed at a ceremony held last month where the plan for the Moatfield complex was unveiled. The ceremony was attended by project proponents including Ray Gupta, Chairman & CEO of Sunray Group, and Toronto City Councilors Michael Thompson of Ward 21 and Jon Burnside of Ward 16.
Planned for the property is a thorough renovation of the 11-storey office building at 105 Moatfield Drive, while the five-storey office building at 95 Moatfield Drive will be converted into a hotel. The complex has been named the Toronto Fortune Centre and the project website calls it “a long-term transformation intended to introduce future hospitality, dining, wellness, recreation, and commercial amenities that enhance the overall campus experience.”
Renderings of Toronto Fortune Centre at 95 and 105 Moatfield Drive. (TAES Architects, Sunray Group)
Sunray Group’s Ray Gupta (centre) at a renovation commence ceremony last month. (TAES Architects)
When the property was being marketed for sale, Cushman & Wakefield’s sales brochure listed the occupancy of the complex at 53%. However, the complex is now “mostly vacant,” according to the Receiver, who said in a report to the court that Hitachi decided to relocate prior to their lease expiring on January 31, 2026 and now only occupies 29,175 sq. ft. Five other tenants, three of which were affiliated with Visionary, also stopped paying rent and the leases were previously terminated.
The office building will be home to 247,953 sq. ft of office space, while the hotel building will be home to 165,315 sq. ft of hospitality, dining, beauty, wellness, recreation, retail, and business-supporting services.
