Financial Dispute
The receivership order covers Brampton development lands, allowing for the construction of over 2,000 new residential units in townhomes, single-family homes, and mid- and high-rise apartments.
Development land in Ontario and Canada is increasingly falling into distress, with developers indebted in the high millions, causing projects to stall and facing uncertain futures. Maplequest Ventures Inc., a privately held real estate company, was placed under receivership in June 2024.
Maplequest is developing two lands, 10475 Heritage Road and 11229 and 11258 Torbram Road, into townhouse, mid-rise, and high-rise units. The June 14 application for receivership identifies KingSett Mortgage Corporation and First Source Financial Management Inc. as the senior secured lenders, with outstanding principal amounts of $47,954,224.90 and $41,250,000 respectively.
Maplequest has failed to pay two months of interest payments, resulting in loans maturing in favor of KingSett and First Source. There has been collateral damage, and two development sites owned by Digram Developments Caledon Inc. are included in the receivership order, as Digram is a guarantors on the loan.
The June 26 order appoints KSV Advisory as receiver and manager of Brampton and Caledon development properties, allowing the restructuring firm to proceed with the properties, with the hope of preserving property value.