Three luxury condominium projects in the Yorkville area by Cresford Developments have gone into receivership, it was reported on April 1.
The projects in question include 33 Yorkville Avenue as well as the Halo and the Clover condos representing a total of approximately 2,000 units.
— Report on Business (@globebusiness) April 1, 2020
By all reports, the company was in trouble well before the onset of COVID-19. According to a Toronto Star report two investors in the projects, bcIMC Construction Fund Corp. and Otera Capital asked the court for the receivership in early March.
Reportedly, all three projects were sold out, and the receivership is more to do with cost overruns.
Three Cresford T.O. condo projects in receivership, Toronto Star: Creditors claim the company failed to pay construction trades and hid its precarious financial standing from investors. https://t.co/ReQSj87tkS #CRE #realestate
— RENX (@RENXca) April 1, 2020
PricewaterhouseCoopers (PwC) has been named as a receiver in the case.
“The Receiver understands that the Cresford Group entered into pre-construction unit purchase contracts with numerous persons in respect of the Clover, Halo and 33 Yorkville projects. No decisions have been made in respect of these contracts,” read a statement on the PwC website.