Just over a full year after foreclosure proceedings were initiated, the boutique Versante Hotel in Richmond has been placed under receivership as a result of the lender's concerns regarding the owner-operator, according to filings in the Supreme Court of British Columbia obtained by STOREYS.
The Versante Hotel is a 14-storey hotel with 100 rooms and amenity space that is located at 8499 Bridgeport Road in Richmond and has received much recognition from the hospitality sector since it opened in 2018. The hotel is part of the three-tower International Trade Centre (ITC), with the other two towers being the 10-storey office tower at 8451 Bridgeport Road and the 12-storey office tower at 8400 West Road, according to Sunwins, the developer.
Owned under International Trade Center Properties Ltd., the ITC is located just south of the Canada Line SkyTrain's Bridgeport Station and is also located near the eastern end of Sea Island Bridge, which leads to Vancouver International Airport.
Only the Versante Hotel, and not either of the ITC's two office towers, was subject to the foreclosure initiated last year.
The Foreclosure
Foreclosure proceedings were initiated by Fox Island Development Ltd. and Advanced Venture Holdings Co. Ltd. on January 24, 2024 pertaining to a loan agreement the two sides entered into in June 2021, for the principal amount of $35,849,266.69.
According to the lenders, the borrowers defaulted on the loan when it became due, but the two sides entered into a forbearance agreement in February 2023 that was later extended twice. At the end of the forbearance period, the borrowers were still unable to pay and the borrowers subsequently issued a demand for payment before initiating foreclosure proceedings.
As of December 31, 2023, the outstanding amount had ballooned to $78,687,149.52, with interest accruing at 30% per annum, compounded monthly.
On February 29, 2024, the Supreme Court granted the order nisi of foreclosure and the Versante Hotel was subsequently listed for sale by Bob Levine, Michael Emmott, Brendan Hannah, and Jonathan Hallett of Avison Young with an asking price of $98M, as first reported by STOREYS.
The Versante Hotel at 8499 Bridgeport Road in Richmond. / Avison Young
Since then, a sale has not been able to be completed, despite a relatively high amount of interest. According to a court filing dated February 25, 2025, a total of 47 parties had signed confidentiality agreements and 14 parties took tours of the property, by mid-September.
That month, an offer to buy the Versante Hotel was received, the first deposit was paid, and the bidder had 30 days to do its due diligence. However, after exercising an option to extend the due diligence period, the bidder confirmed it was unable to proceed because they could not secure financing. The offer was terminated and the deposit was returned.
Although the details were not disclosed in case documents, STOREYS has learned that the offer was made by PACM Real Estate Fund II LP, also known as Pacific Aegis Capital Management, a private credit investment management firm based in Hong Kong.
Although the lenders note that, since November, three parties have expressed interest to make an offer in the near future, the lenders nonetheless sought to place the property under receivership, citing several concerns. A foreclosure gives the lender control of a property, while a receivership gives them control over the relevant company, a subtle difference that translates to more control.
The Lenders' Concerns
The concerns of the lenders extend to the hotel manager, its net income, as well as the owner: Mo Yeung Ching, also known as Michael Ching, who is identified in court documents as the sole director and principal of International Trade Center Properties Ltd. and Hotel Versante Ltd. — the entity that owns the hotel and the entity that operates the hotel, respectively. The Versante Hotel was then managed by an unrelated third party, Trilogy Hotel Management.
According to the lenders, despite the business performance of the Versante Hotel improving from 2023 to 2024, Ching directed Trilogy to reduce performance bonus pay to management staff, with Trilogy quoted as saying Ching has "contempt for our abilities and the results that we have achieved for him."
On January 6, the General Manager — Sanjeet Sadana — tendered his resignation and had made arrangements for an experienced hotel manager to temporarily replace him after his last day. However, Ching told Trilogy that he intended to assume the role of General Manager himself. Trilogy recommended against this, their management agreement with Ching was terminated on January 19, effective immediately, and the lenders say they believe Ching is now acting as the manager.
Amenity space (left) and a hotel suite (right) within the Versante Hotel in Richmond. / Versante Hotel
Regarding the hotel's income, the lenders said the most recent statement they received from Ching was for the period ending November 2024 and indicated a year-to-date net income of over $2,500,000. However, the lenders say Ching has been less than transparent about how the income is being used.
"Mr. Ching refused to provide any further details about the net income and he specifically refused to apply any of the net income to repay the debts owing to Fox Island," said the lenders in their receivership application. "Mr. Ching made comments to Fox Island to the effect that if it took any steps to compel him to pay the net income to Fox Island or take control of the Hotel away from him, that he would stop providing any information on the Hotel, stop cooperating with Fox Island in the sale of the Hotel, and would attempt to create difficulties with respect to the sale efforts, regardless of whether it would be to the detriment of his own interest or Fox Island's."
The lenders say that they do not object to the hotel's revenue being used for the ordinary business of the hotel, but are concerned that Ching is now using it for unrelated purposes since he is now refusing to provide transparency. They say Ching has also told them and potential purchasers that any purchaser would have trouble operating the hotel without him. Fox Island does not believe this claim to be true, but say "Mr. Ching's comments have created uncertainty about the Hotel among potential bidders, which may adversely affect marketing efforts." They also claim that one potential bidder has said they would be more willing to make an offer for the hotel if Ching was excluded from the management of the hotel.
Citing the above reasons, Fox Island said that it is concerned that their financial security is at risk and has lost confidence in Ching's ability to protect the operations and value of the Versante Hotel, thus the need for a court-appointed Receiver. On March 4, the Supreme Court granted the receivership application.
