After the collapse of a former development company that owned a residential tower, YSL Residences, in Toronto, Concord Adex has been allowed to take over their property and construct a 95-story tower in its place. The company only recently received court approval to take the property and will be constructing the 299-metre high tower that will be one of the tallest towers in the city when it is completed in approximately 5 years. After reports of financial irregularities were raised by a former company executive, lenders began to call loans and file notices of insolvency when repayment was not forthcoming and more than a year later YSL filed a proposal under the Bankruptcy and Insolvency Act in April 2021, following three of the four projects, known as Halo, Clover and 33 Yorkville, being tangled up in Companies’ Creditors Arrangement Act insolvency proceedings for most of 2020.
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Concord Adex has had to cough up nearly CAD$167 million towards the deal. Out of this total, CAD$30.9 million was to cover unsecured creditor claims and the remainder to pay out the Timbercreek mortgage and assume other loans. About 700 of the 1,100 apartments at YSL and the bankruptcy process for the property does not allow Concord to renegotiate purchaser agreements. The remainder of the units to be sold are on the upper floors of the building, which may end up being the most valuable real estate.
“We are pleased to have acquired what will be one of Toronto’s most iconic tower projects. We are pleased to have acquired what will be one of Toronto’s most iconic tower projects,” said the President and CEO of Concord Adex/Concord Pacific, Terry Hui.
