A judge is set to review an approval and vesting order this week in respect of 41 Wabash Avenue: the site of a proposed 15-unit townhome project from the Vandyk Group of Companies.
The development site in the heart of Roncesvalles, on the corner of Wabash and Sorauren avenues, is one of a dozen that has become embroiled in receivership proceedings since November 2023. One by one, these sites are being offloaded to the highest bidder per court orders.
Speaking to the 41 Wabash site specifically, an appointment order was granted by the Ontario courts earlier this year, on January 18, amid allegations that approximately $9.96M was owed to Fiera Capital Corporation by the site owner, which is a single-purpose real estate company operating under the Vandyk Group umbrella. On March 8, a sales process approval was granted for 41 Wabash (alongside Vandyk’s King's Mill, Grand Central Mimico, UPtowns, Heart Lake, The Ravine, and Lakeview DXE Club sites, and sites linked to three numbered companies).
An August 9 motion from the appointed receiver, KSV Advisory, seeks the courts approval of a proposed sale of the 41 Wabash property to THMR Development Inc., “which was subsequently assigned by THMR Development Inc. to Telon Land Group Inc.” pursuant to an asset purchase agreement dated July 14. The purchase amount has not been disclosed in the motion.
KSV’s motion does describe the sales process, however, noting that Colliers Macaulay Nicolls Inc., Brokerage was retained to broker the sale of the property. Colliers’ listing describes the site as “shovel ready” and approved for a maximum of 15, four-storey townhomes and up to 37,674 sq. ft of gross floor area.
The listing also states that redevelopment of the site was slated to involve the conversion of a three-storey building already on the subject site. The planned construction hadn’t started at the time the receivership order went into effect, the court filings note.
Circling back to KSV’s August 9 motion, it says that Telon’s purchase order excludes any unit sales agreements — and as such, KSV is requesting permissions to terminate and disclaim any such orders — and that the funds from Telon’s proposed purchase would be used to make “one or more distributions” to Fiera.
KSV is set to present their motion and Telon’s purchase agreement to a judge on Thursday, August 15.
