New Developers Appointed to Stalled Project in Vancouver

Terrace House has been stalled near Coal Harbour Park. Image credit: Vancouver Public Space Network (VPSN), licensed under CC BY-NC-SA 2.0

11 November 2021 | Vancouver, Canada

At the end of October, the British Columbia Court of Appeal overturned a ruling made by the British Columbia Supreme Court over which developer will take over Terrace House.

The project was originally developed by PortLiving. In 2017, this company sold presale contracts for the building and construction began in 2018. The project was 20 percent constructed when, in May 2020, the cost overruns cased the main lender to stop funding for the project. This led the British Columbia Supreme Court to put the project under court bankruptcy protection.

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Under the Companies’ Creditors Arrangement Act, the court was responsible for finding a new buyer or investor. Three companies made bids for the project. Developers Landa Global Properties and Solterra Development Corporation submitted proposals to take over the project and sell off the assets. The third company, formed by Tobi Reyes, the CEO of Portliving, proposed to refinance and continue the project. Domain Mortgage Company was just one investor behind this third proposal and agreed to contribute AUD$14.7 million (US$ 10.7million).

In June 2021, the British Columbia Supreme Court ruled in favor of Solterra. However, at the end of October, the British Columbia Court of Appeal overruled this decision and instead approved Reyes’s company proposal. The new decision was reached to avoid the social and economic loss resulting from liquidation of an insolvent company. This decision cited the fact that Reyes’s company proposal already was being backed by two secured creditors. Also, under this proposal, all presale buyers will keep the right to purchase their unit once construction is complete.

For more on this story, go to Vancouver Sun.