The development at 1045 Haro Street in Vancouver, spearheaded by Haro-Thurlow Street Project Limited Partnership, has been placed under receivership, with the developer currently facing a debt of $82.2 million.

Source: Storeys

Renderings of 1045 Haro Street in the West End of Vancouver.(Patkau Architects)

A much-anticipated high-rise venture in Vancouver’s West End faces a significant setback as the developers find themselves in receivership, as per filings in the Supreme Court of British Columbia.

The project, situated at 830-850 Thurlow Street and 1045 Haro Street, aimed to introduce a 55-storey strata condo tower and a 15-storey counterpart featuring a total of 450 strata condominiums and 66 rental units. The envisioned development also included plans for 42,000 sq. ft of retail space, a 49-space childcare facility, and a new public plaza, details of which are still available on the project website.

Last year, the Bank of Montreal, acting as a secured creditor, filed a receivership application asserting that the developers are in arrears, owing an outstanding $82.2 million in principal and interest.

The development site is under legal ownership by Harlow Holdings Ltd., with beneficial ownership vested in Haro-Thurlow Street Project Limited Partnership (HTLP), jointly owned by 11044227 BC Ltd. (45%), Forseed Haro Holdings Ltd. (45%), and Terrapoint Developments Ltd. (10%). The collective ownership entities and several individuals with stakes in them are collectively the subjects of the receivership application.

Intracorp Homes, a notable Vancouver-based developer, serves as the development manager for the project and holds a minority share through Terrapoint Developments Ltd. Notably, Intracorp Homes itself is not a subject of the receivership application. The architectural design of the project is credited to Patkau Architects.

Debt, Default, and Disputes Unfold in Vancouver’s West End Development Saga

A highly anticipated high-rise project in Vancouver’s West End is facing substantial challenges, as detailed in a recent court filing. The development, located at 830-850 Thurlow Street and 1045 Haro Street, intended to feature a 55-storey strata condo tower and a 15-storey tower, along with additional amenities such as retail space, a childcare facility, and a public plaza.

The current owners acquired the property for $172,750,000 in August 2018, with financing from BMO and Forseed and Terrapoint, amounting to $94 million and $84.5 million, respectively. The project’s total ongoing costs reached $106 million as of December 2023. However, the owners, facing difficulties meeting the City of Vancouver’s requirements and potential encroachments on view cones, have been unable to proceed with the development, prompting negotiations for amendments to their credit agreement.

BMO, the primary creditor, submitted a receivership application last year, claiming an outstanding debt of $82.2 million. Despite efforts to sell the property, offers ranging from $81.5 million to $100 million were received, none of which were accepted due to concerns about substantial losses. Tensions arose among stakeholders, with a notable offer from Chard Development for $93 million causing a dispute between majority stakeholders Forseed and 11044227 BC Ltd. and minority stakeholder Terrapoint.

In July 2023, the owners defaulted on their interest payment, leading to BMO’s demand for payment in August. Subsequent forbearance negotiations failed, and BMO filed for receivership. The court appointed Deloitte as the receiver, empowered to arrange a sale of the property. An appraisal valued the property at $192 million, but challenges, including higher interest rates and construction costs, may impact its current value.

The court ruled for the receiver’s appointment as of January 12, with sales efforts deferred until after February 23. Approval for any sale offers is not possible until after April 26. If a sales process commences, a commercial real estate brokerage is likely to be engaged, with offers scrutinized before presenting a final choice to the court for approval. The development’s future remains uncertain, navigating a complex landscape of financial challenges and disagreements among stakeholders.

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