Developer accused of misappropriating funds, as 2 more condo projects placed into receivership

A lawyer representing a mortgage company has accused the developers of three financially troubled condo projects in the Lower Mainland of misusing funds intended for the Canada Revenue Agency. However, during a court hearing overseen by Justice David Masuhara, the lawyer clarified that they were not implying any criminal activity on the part of the developers.

The properties in question, including Burnaby’s Highline and Richmond’s Minoru Square, have incurred mortgage defaults totaling $250 million, with daily interest accruing at a rate of approximately $70,000. This recent development comes after another Thind project, District Northwest in Surrey, was placed under receivership due to an $80 million mortgage default.

Although Thind Properties is the developer behind these projects, the legal proceedings target the specific companies and partnerships established for each development. It was revealed that the same individuals ultimately control all three projects, with collateral arrangements between Minoru Square and Highline.

Despite the receivership, it was emphasized that occupied units at Highline would not be affected, and the receiver would focus on unsold units. In an affidavit, Daljit Thind, the president of Thind Properties, assured that deposits for pre-sold units at District Northwest were secure, as they were sold below market value.

The legal proceedings have attracted significant attention from media and pre-sale purchasers concerned about the fate of their units. The Highline’s strata corporation has also raised claims against the developer for unpaid fees, while various contractors and workers have filed lawsuits seeking payment for services rendered.

In response to these mounting claims and financial challenges, the court has appointed a receiver to oversee the Highline and Minoru Square properties. The receiver will work towards resolving the financial issues and ensuring the interests of all stakeholders are protected.

As the legal battle continues, uncertainties loom over the future of these condo projects and the implications for investors and residents. The ongoing developments underscore the complexities and risks involved in large-scale real estate ventures, highlighting the importance of transparency and financial responsibility in the industry.