Coromandel Properties sued by lender over $8M unpaid debt
Vancouver developer Coromandel Properties is the subject of a new civil suit over an unpaid debt of more than $8 million.
The financially troubled developer initiated insolvency proceedings earlier this year, only to halt them after coming to an agreement with several of its lenders. The fate of several of its existing projects was called into question, with one being foreclosed this month.
Now, Coromandel is being sued by Woodbourne Capital Management, a real estate firm with offices in Toronto and Boulder, Colorado, for over $8 million that Coromandel owes.
The notice of civil claim was filed in the BC Supreme Court in May and explained Coromandel never repaid its $8.3 loan, despite a demand letter sent on January 25. At the date of the demand letter, interest on the loan was accruing at about $3,300 per day.
The two companies were working together on the Southview Gardens project in Champlain Heights.
Southview Gardens is located on East 58th Avenue near Kerr Street and is a 6.6-acre property. Coromandel wanted to redevelop the existing townhouses’ 140 apartment units into four six-storey buildings with 1,150 rental homes.
According to court documents obtained earlier this year, Coromandel owed more than $80 million for Southview Gardens.
With files from Daily Hive’s Kenneth Chan
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