[Editor's Note: The headline of this article was updated on January 8 to reflect that KingSett's application was approved on January 8.]
Toronto-based KingSett Capital, the lender who initiated receivership proceedings against three projects by Burnaby-based real estate developer Thind Properties, has initiated creditor protection proceedings against a fourth project by Thind, according to filings in the Supreme Court of British Columbia.
Over the past decade, Thind Properties has been developing four towers across a large site immediately south of The Amazing Brentwood in Burnaby, near Still Creek Drive. Those towers include the Lumina Waterfall at 2311 Beta Avenue, Lumina Starling at 2351 Beta Avenue, and Lumina Alpha at 2288 Alpha Avenue, all three of which were completed around 2020 and 2021.
At 2381 Beta Avenue, Thind — who owns the property under Beta View Homes Ltd. and Lumina Eclipse Limited Partnership — has been developing a 34-storey tower called Eclipse Brentwood that will deliver around 330 strata units — 329 according to Thind's corporate website, 335 according to KingSett Capital.
According to KingSett Capital, construction on Eclipse Brentwood — referred to as "Brentwood Tower C" — is now approximately 95% complete, with approximately 224 units subject to presale agreements.
The Debt
In its Petition to the Court dated January 7, KingSett Capital said that they entered into a loan agreement with the owners in April 2021 for a first-ranking mortgage in the principal amount of $124,000,000. On the same day in April 2021, KingSett Capital and the owners entered in a loan agreement for a second-ranking mortgage in the principal amount of $65,400,000, comprised of a first loan facility of $50,000,000 and a second loan facility of $15,400,000. Both agreements were later amended in June 2021, July 2022, May 2023, June 2023, and March 2024.
According to KingSett, Thind owes $189,196,038.21 as of December 27, 2024, with interest accruing at a daily rate of $28,349.08 on the first mortgage, $20,608.05 on the second mortgage's first facility, and $4,905.76 on the second mortgage's second facility.
KingSett says it issued a demand for payment on December 27 and that it also holds six additional mortgage charges registered against 2381 Beta Avenue, as a result of cross-collateralization with the Minoru Square and Highline Metrotown projects.
As part of the cross-collateralization with Highline Metrotown, a 48-storey tower located at 6511 Sussex Avenue that was completed in late-2023, Thind granted 13 units within Lumina Waterfall and Lumina Starling as collateral. Those units were never sold, are also owned under Beta View Homes Ltd., and have thus also been included in this latest application by KingSett.
A rendering of Thind's towers in Brentwood. / Thind Properties
Furthermore, KingSett says that it discovered in mid-December that the Canada Revenue Agency had registered a judgement in the amount of $11,996,763.09 against Eclipse Brentwood and the leftover Lumina strata units.
"The CRA Judgement was obtained over a year and a half prior to the CRA Judgement being registered on title to the Real Property," KingSett said. "At no point prior to the CRA Judgement's registration did the Respondents make KingSett aware of the CRA Judgement, notwithstanding the fact that the Respondents had a duty to provide such reporting to KingSett. KingSett continued to lend money and engage in business with the Respondents in the period following the CRA Judgement, which KingSett would not have had it known of the CRA Judgement."
"In KingSett's view, the CRA Judgement demonstrates that the Respondents have significant cash flow concerns that have been ongoing for over a year and a half," they added. "The CRA Judgement puts KingSett's collateral at significant risk and is a clear breach of the Respondents' obligations."
Across the Eclipse Brentwood, Highline Metrotown, Minoru Square, and District Northwest projects, Thind Properties' total debt owed to KingSett Capital is approximately $500 million. In addition, Thind also owes $8.1 million pertaining to a Maywood property that became the subject of foreclosure proceedings last month.
Eclipse Brentwood and Creditor Protection
Rather than a receivership, KingSett Capital has applied to place the properties under creditor protection pursuant to the federal Companies' Creditors Arrangement Act (CCAA) because the latter allows for "the flexibility and stability necessary to explore the options available."
Although Eclipse Brentwood is nearly complete, KingSett says that construction on the project has halted.
Thind Properties originally retained Surrey-based WBI Home Warranty as the insurer for Eclipse Brentwood. However, due to Thind's financial difficulties, WBI Home Warranty can no longer serve as the insurer, resulting in the City of Burnaby — who has sued Thind over missed payments on the aforementioned Maywood property — to suspend the building permits for the project.
However, KingSett says WBI has indicated that it is willing to resume the insurer role so long as they receive payment and indemnity. KingSett says Thind is not able to accomplish this and is also not able to secure financing due to the CRA judgement, but that KingSett is willing to provide that financing and also fund the completion of Eclipse Brentwood.
"KingSett has not been provided a workable solution from the Respondents with respect to the home warranty insurance being reinstated absent these CCAA proceedings," they said. "Without this insurance in place, the Respondents' assets are in jeopardy, to the detriment of all stakeholders, as construction cannot resume."
A rendering of the ground floor of Eclipse Brentwood. / Thind Properties
Additionally, KingSett says that it has also "lost faith" in Thind as a result of Thind misappropriating funds — what usually means, in the context of mortgages, using mortgage funds for purposes other than what's allowed under the mortgage agreement.
"The Respondents obtained cash in lieu of certain LC commitments from the City of Burnaby in and around September 2024," KingSett said. "These funds released from the City of Burnaby should have been used to paydown the indebtedness owed to KingSett in connection with Brentwood Tower C. However, these funds were used by the Respondents to fund additional costs that were not disclosed to or approved by KingSett in connection with Brentwood Tower C, increasing KingSett's exposure."
If KingSett's application for creditor protection is granted, the proceedings will begin with an initial period of protection, after which the protection can continuously be extended upon application.
In addition to the creditor protection, KingSett is also seeking a declaration that no new disclosure statement needs to be filed under British Columbia's Real Estate Development Marketing Act, as a new disclosure statement would give the existing purchasers the option to back out of the agreements.
Serving as the general contractor on Eclipse Brentwood is D-Thind Development Beta Ltd., an entity controlled by Thind Properties Founder & CEO Daljit Thind. In 2024, multiple lien claims were filed against D-Thind, including a claim of $261,557.74 by New York Painting & Coating Ltd. A former-Superintendent on the project, Stephen Baskerville, also filed a claim for $31,069.32 in November after being "terminated without cause or notice on October 30, 2024."
If you are a pre-sale purchaser on Eclipse Brentwood who would like to share your experience, you can email howard@storeys.com or message HowardChai.24 on Signal.
