Eden Group Sophia goes into recievership
Old news to some, but The Sophia on east 11th and Sophia street in Mount Pleasant has gone into recievership. The Bowra group (the reciever) has 21 days to submit a plan to the courts. The thing that makes this really surprising is that the Sophia is 85% complete. When the Eden group canceled two other Vancouver developments in November of 2007 Bill Eden assured reporters that the Sophia would be completed.
The problems with completing all of these developments is reportedly related to cost over-runs and difficulty finding construction crews, but with condos selling for record high prices in Vancouver how is this going to play out in the long run? Limited availability of crews sounds to me like a temporary bottle-neck based on a large number of projects currently under construction, has the cost of labour really risen that much in the last few years?
The Sophia will very likely be finished given that it’s 85% complete, but this news probably makes those pre-sales contracts worthless. This issue is brought up in this CTV article:
NDP housing critic Diane Thorne said unless our laws change, presales could be the next leaky condo crisis.
“I think it should be a guaranteed price,” she said. “Prices will go up in the beginning, but I think there’s more security for homeowners. They won’t buy something they’ll lose or not be able to afford.”
Bob Rennie, who makes his living marketing presales, says reputable developers welcome new laws.
“Anything the government wants to put in place to protect the consumer doesn’t worry those top 15, 20 developers,” he said. “If you’re getting creative with your financing, or your profit margin is too low, that developer may worry. But then again we’re protecting the consumer so let’s do it.”
Thorne is drafting a private member’s bill about pre-sale law and she hopes the government will take it seriously.
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March 20th, 2008 at 12:09 pm
correction the date for the hearing is March 26th.
March 19th, 2008 at 4:50 pm
SORRY…THE DATE FOR THE COURT HEARING IS TUES, MARCH. 25, 2008….
March 19th, 2008 at 4:49 pm
I URGE EVERYONE AFFECTED BY THE SOPHIA RECEIVERSHIP TO ATTEND THE VANCOUVER COURT HOUSE ON TUES, MARCH 15, 2008 AT 9:00 A.M. TO STOP THE BOWRA GROUP'S RECOMMENDATION TO THE COURT. THE REPORT IS AS STATED IN HIS REPORT "NON-AUDITED" AND RELIED UPON INFO PROVIDED BY DEVELOPER. HOW CAN DAVE BOWRA DEPEND ON THE FIGURES PROVIDED BY THE DEVELOPER WHO IS THE BIGGEST FRAUDSTER IN VANCOUVER!!!
March 18th, 2008 at 8:50 am
Changing the property to his wife's name isn't going to help. People just better hope he doesn't sell and return to South America.
March 18th, 2008 at 5:28 am
How do you know that Bill bought property in Brazil? if true, the investors need to know a.s.a.p…i know he has already changed ownership on his principal residence in Dunbar, 2nd home on Yew Street and home in Whistler to just his wife's name…this guy is smart!!!!
March 17th, 2008 at 8:26 pm
Bill bought some property in Brazil, where do you think the 1mil has gone. He's going to dine and dash. My feeling is you won't see Bill again very soon.
Eden group of crooks.
March 17th, 2008 at 5:28 pm
There is detailed evidence that the Sophia project did not have to go into receivership. The project definately exceeded the original cost budget and construction schedule. My sources have advised that the final cost to complete additonal monies were committed by Bancorp and some inside investors. In summary, there was enough money to complete the Sophia, estimated to be $2,500,000 +/- by raising these monies and proceeding with completion of the project. Instead of taking this route, which any decent developer would do, Bill Eden personally chose to put the project into receivership and not Bancorp which he is using as a cover up. Further, the receiver, Bowra Group has completely destroyed any hope of this project being completed. Has anyone analyzed the cost to complete done by the Bowra Group? Absolutely ridiculous!! Now, he is recommending that all purchasers pay 90% of market value and still the unsecured investors don't get their principal back but he get's paid his $600,000+ receivership fee plus giving a job to his buddy construction manager to complete 3 months worth of final construction for some $370,000 +/-…these two amounts have just added a million bucks to the cost of the project…and Bancorp, now charging 20% rate…this is highway robbery!! I have been told by inside personnel that a group of investors have hired a top gun litigation lawyer to fight this receivership as it flippin "BOGUS"..and for the $1,000,000 in trade/supplier holdback monies that are "supposed" to be held in a separate bank account according to the law, are now gone…I am sure the provincial authorities will be ceasing operations of the Eden Group and seizing all bank records and files..repeat of Enron all over again…guaranteed….this is not a case of civil law issues but CRIMINAL issues…the developer should come out clean to everyone and take the project out of receivership, work out a purchase price increase of approx. $30,000 / unit (which is fair) and complete the building. The cost to complete is not what is shown in the report to the court.
March 16th, 2008 at 10:08 pm
ummmmm… yeah…. construction is where all the drug lords and users end up…… it is really an exclusive club and we hate it when any other sector tries to head hunt our addicts.
And I for one have a problem with construction workers buying usless items like trucks….. I have a strict policy to only hire trades that utilize public transit for any and all material and equipment transport.
Problem identified and solved.
March 16th, 2008 at 3:42 pm
JASON – please email me at redvod@gmail.com on how to contact you – I'll tell you all about, I'm on your side.
March 16th, 2008 at 2:59 pm
Jason – I wold be interested in talking with you, how do I get in touch ?