Coromandel properties in South Vancouver to be foreclosed next month
A BC court has ordered the sale of several land parcels in Coromandel Properties’ Alberta 40 project unless the financially troubled developer can come up with mortgage payments by the end of next month.
According to foreclosure court filings, Coromandel and holding companies associated with the properties have until June 30 to pay up to redeem the properties, or else they’ll be sold.
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It comes after Coromandel filed for insolvency earlier this year, saying its cashflow problems were exacerbated by rising interest rates and a slow development application process within the City of Vancouver.
In April, a Vancouver judge accepted a petitioners’ application to have the land parcels in the Alberta 40 project “offered for sale immediately by private sale, free and clear of all encumbrances except reservations and conditions in the original grant thereof.”
The court granted petitioner Hossein Sobhani and a numbered company oversight to conduct the sale of 5575, 5638, and 5592 Alberta Street.
Xinlan Niu and Fang Ning were granted oversight of the sale of 5666, 5676, and 5686 Alberta Street.
To Redeem each bundle of properties, coromandel would need to pay more than $5 million to each lender. The properties are all single-family homes valued between $3.5 and 4 million each, according to Assessment BC.
Coromandel had likely purchased the properties for future development but hadn’t yet released specific plans. The collection of properties was named after the closest major intersection of Alberta Street and West 40th Avenue.
The Alberta 40 collection was part of Coromandel’s Companies’ Creditors Arrangement Act (CCAA) application, which it stopped in March after reaching agreements with lenders.