The CBC is reporting that two Chandler Development Group condo projects have run into financial difficulty (yes that Chandler Development Group). A lawsuit didn’t stop construction of these projects, but H&H Yaletown and Garden City Richmond have gone into recievership. This just one week after the same problem with the Eden group Sophia development.
H&H is a 192-unit building, while Garden City is comprised of 108 units, according to a receiver manager’s report to the B.C. Supreme Court.
Both projects were scheduled to be completed by the end of June 2008.
“The company was running into cost overruns, they were running out of cash and I think the lenders wanted to complete the project,” said Bowra Group President David Bowra.
“But they weren’t convinced it could be completed without the assistance of a third party. So they decided to apply for a receiver to be appointed.”
The receiver has discovered that 23 condos in the Chandler Development Group projects were allegedly sold to insiders at prices well below market value, Bowra said.
They may get to keep their condos, but will likely have to pay today’s prices, he said.
For the pre-sale buyers that paid full market price there is a silver lining:
It appears that the other buyers will get their condos for the price paid as there is enough money available to finish the job.
Thanks to BBY and exvancouverite for the link.