A Vancouver developer that has accumulated more than $700 million in debt, according to court records, appears to be pushing back on media reports about its efforts to seek creditor protection and the potential impact on presale buyers.
Real eState
Vancouver developer Coromandel Properties pushing back on media reports about debts
Coromandel Properties has been acquiring land and developing multi-family residential towers and townhomes around Vancouver since 2013. But the company is struggling to make payments on its 16 properties — most of which are unfinished — according to a petition filed last week in B.C. Supreme Court that asks for time to sort through a maze of financial problems due to difficulty servicing its debts amid rising interest rates.
The statement, posted in Chinese, said some reports inaccurately reported the company owed more than $1 billion. The statement said the company’s Frame project, which is located in East Vancouver on Kingsway, is running according to plan.
The Frame project, which includes over 200 units, is being developed by Coromandel and Vancouver-based real estate company Peterson Group.
The statement directs buyers to call a sales centre.
The statement also mentions the Oak 52 project, which it says can be seen by anyone passing 6778 Oak St, which it said is proceeding on schedule and expected to complete at the end of the year.
More relevant information will be reported to buyers and real estate agents about these two projects as soon as they become available, the statement read, adding that the rest of the projects involve land that is to be developed.
The statement also said that no presale contracts have been sold for the rest of their projects and that they will not become a “rotten tail,” meaning they won’t be dropped or abandoned.
In closing, the statement said the company’s lawyers have made clear that the company reserves the right to take action against media and others who are spreading false claims, that there is evidence of this, and the company is collecting examples or files to make its case.
Coromandel has not asked Postmedia News for any corrections, retractions or clarifications in its reporting to date.
When asked about the Chinese-language statement on WeChat, a representative for Coromandel sent an emailed statement saying: “Coromandel cannot provide any further commentary. However, we will submit a secondary statement later this week.”
At a career development event co-hosted by Tsinghua and Fudan University alumni associations at Simon Fraser University’s downtown campus on Sunday, Vancouver Mayor Ken Sim was asked about shortening the time it takes to develop projects in the context of a question about news of a local developer’s financial troubles.
“Our permitting process is way too long and if we don’t make it faster, this whole thing falls apart because we will not be able to provide enough housing faster,” said Sim.
However, he also added that Coromandel was in “business knowing full well that the process is too long. Coromandel is suffering right now and I don’t want to belittle it. There are also a lot of developers that have gone through the same challenges that are still in business. What we do at the City of Vancouver is we provide an environment for businesses to succeed and businesses need to step up and operate.”
Some companies don’t make it, Sim said.
“That’s the fairness of free-market economies. By default, some (companies) go out of business.”
A hearing is scheduled at B.C. Supreme Court on Thursday.
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TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.
The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.
The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.
“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.
“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”
The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.
New listings last month totalled 15,328, up 4.3 per cent from a year earlier.
In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.
The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.
“I thought they’d be up for sure, but not necessarily that much,” said Forbes.
“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”
He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.
“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.
“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”
All property types saw more sales in October compared with a year ago throughout the GTA.
Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.
“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.
“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”
This report by The Canadian Press was first published Nov. 6, 2024.
The Canadian Press. All rights reserved.
HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.
Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.
Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.
The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.
Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.
They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.
The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.
This report by The Canadian Press was first published Oct. 24, 2024.
The Canadian Press. All rights reserved.
Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.
Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.
Average residential home price in B.C.: $938,500
Average price in greater Vancouver (2024 year to date): $1,304,438
Average price in greater Victoria (2024 year to date): $979,103
Average price in the Okanagan (2024 year to date): $748,015
Average two-bedroom purpose-built rental in Vancouver: $2,181
Average two-bedroom purpose-built rental in Victoria: $1,839
Average two-bedroom purpose-built rental in Canada: $1,359
Rental vacancy rate in Vancouver: 0.9 per cent
How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent
This report by The Canadian Press was first published Oct. 17, 2024.
The Canadian Press. All rights reserved.
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