A receiver appointed by the B.C. Supreme Court to take over three insolvent Thind Properties projects is now gearing up to sell two of them.
Toronto-based receiver KSV Restructuring Inc. is preparing to unload District Northwest in Surrey and Minoru Square in Richmond, which were put into receivership this past Nov. 8 and Dec. 13, respectively.
In two Notices of Application filed with the court on Monday, KSV said it will be applying on April 2 for court orders approving sale processes for District Northwest and Minoru Square.
Each sale process is “intended to be a flexible, efficient and fair process for canvassing the market for potential purchasers and maximizing the value of” each property, said the notices.
Under the District Northwest sale process, there will be two phases. The first phase requires potential bidders to submit a non-binding letter of intent and a non-disclosure agreement by May 9. The second phase requires qualified bidders to submit a binding offer by June 13.
To help set a floor price, KSV has already entered into an agreement with a so-called “stalking horse” bidder, 1419195 B.C. Ltd. If further bids are received, there will be an auction among them. If the numbered company ends up with the successful bid, it is expected to preserve 873 pre-sale contracts and complete the project, consisting of two high-rise towers not yet built.
Meanwhile, under the Minoru Square sale process, the receiver’s sales agent would begin targeting prospective purchasers within 20 days of the court order, through tools such as a “teaser letter” and a “virtual data room.” Within the following four to six weeks, the sales agent would distribute marketing materials and offer the property for sale on an “unpriced basis” or for one dollar on a Multiple Listing Service.
Following the compilation of bids, and before selecting the successful bid based on various criteria, the receiver “may request that prospective purchasers improve their offers and invite prospective purchasers to participate in as many rounds of bidding as needed to maximize the consideration offered and minimize risks associated with closing,” said the application notice.
Rather than through a stalking horse, Minoru Square will set a minimum price through the use of a “confidential supplement,” which will be sealed until the end of the auction process.
“The minimum bid amount is sensitive commercial and valuation information, the disclosure of which may jeopardize the Minoru sale process and diminish the realizations resulting therefrom to the significant detriment of the debtors' creditors,” said the application notice.
The 400-unit Minoru Square condo project does not have any active pre-sale contracts, having “paused” the project in May 2023 and returned 20-per-cent deposits around that time, citing elevated interest rates as a factor. Like District Northwest, Minoru Square has also not yet been built.
A third distressed Thind project, Highline in Burnaby's Metrotown, was also placed under KSV’s receivership in December, and commenced a court-ordered sale process in January. Unlike the other two projects, Highline has already been built, and the receiver received court approval to sell 119 remaining units through a retainer with Rennie Marketing Systems.
