This blog will be updated as the new information becomes available.
March 2024.
Highgrove II Vandyk development project which was meant to be approximately 30 townhomes is now for sale. On mls the property owner is listed as a capital management company, not Vandyk.
January 2024.
Appointment of the receivership for 41 Wabash property, for reference please see the link to the advertising materials.
KSV Restructuring Inc. confirms the deposits for DMX and King’s Mill are protected and insured by Westmount Guarantee Services Inc.
In the January 9 update, the receiver advises that the Heartlake and Ravine Projects are freeholds and only the Tarion deposit protection applies. I believe the Heartlake project was advertised and sold as condominium, therefore the amounts in excess of the Tarion protection should be insured. I encourage every buyer in this project to review the legal documents and consult their real estate lawyer.
Vandyk Backyard and Vandyk The Buckingham are now under receivership.
December 2023.
Vandyk Properties – Toronto based real estate developer which owes the lenders amounts in excess $200M is currently in the receivership. The companies who are owed the most (Kingsett Mortgage Corporation and Dorr Capital Corporation ) have asked the Ontario Superior Court of Justice to appoint KSV Restructuring Inc. to be the receiver and take over the management of Vandyk’s following properties:
2402871 Ontario Inc. – 315-327 Royal York Rd, 27-39 Newcastle St.
The projects total 1,757 units of which 830 have been sold to buyers, and the buyers paid significant amounts of deposits.
In addition to the money being owed to above mentioned lenders (Kingsett $169M and Dorr $34M) multiple subcontractors placed construction liens on various Vandyk properties.
It is worth noting that the company is in the process of constructing other projects which are not yet under the receivership, but by all accounts, the construction on these projects have stalled as well. The projects not under receivership (as of December 2, 2023) are:
Vandyk-The Buckingham South-Grand Central Ltd.
Vandyk-Backyard Queensview Ltd.
These two properties, which total approximately 1,000 units, also have construction liens placed on them for unpaid work.
Receiver – KSV Restructuring Inc.
The company in charge of the receivership is doing a very good job posting updates on the situation, there are multiple documents already listed on their website, and we will be updating as soon as new documents became available, you can also subscribe to their newsletter and stay up to date this way.
Are the deposits safe.
Generally speaking, yes, they are. The deposits on condominium projects are covered by Tarion up to $20,000 and according to the Ontario condominium regulations the deposits must be placed in trust accounts. The developers are allowed to use the funds held in trust accounts if the funds in excess of the amount covered by Tarion is insured by Excess Condominium Insurance for Developers, we have previously written in more details about this here.
KSV Restructuring Inc. issued a memo on November 24, 2023, updating the status of the deposit for Uptown. The deposits in excess of Tarion are insured by Trisura Guarantee Insurance.
Online forums discussions related to Vandyk issues.
Many people, buyers, subcontractors, employees and so on have been affected by Vandyk, and there are multiple discussions online related to the topic to which we provide links below, please keep in mind that the info posted by anonymous users may or may not be accurate.
Vandyk Properties heading into receivership/insolvency : TorontoRealEstate (reddit.com)
UPtowns at Heart Lake | ?m | 4s | VANDYK | Page 85 | UrbanToronto
What are the possible outcomes for properties in receivership or bankruptcy.
The projects which have started will be completed, usually another developer will buy it. In the current environment as a future owner or buyer we would be concerned with the quality of these projects. There are 3 most common options:
- the new developer will honour the contracts as is,
- the new developer will cancel the contracts and sell for higher prices,
- the new developer will give the original buyers an option to increase the price to purchase the units before cancelling the contracts. They aren't likely to honour the original contracts if they think they can sell for higher prices.
If the construction hasn't started yet, the land will be sold to another developer, they may cancel the contracts and either sell again right away or wait until the market conditions improve.
This is a very difficult and stressful situation for many involved, we will update the information as it becomes available.
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