Infinity Surrey bankruptcy trouble

Several people just posted this news – another lower mainland condo tower has run into money troubles.  The ‘Infinity at Central City’ is the largest residential complex in the history of Surrey.

With just one of the 35-storey towers completed and occupied, Infinity’s South Korean developers have been granted protection from their creditors. The Infinity is supposed to have five high-rise towers and 1400 units. Robert Millar, lawyer for Jung Developments and Hee Yong Yang says “Yang has been adversely impacted by these changes and world wide tightening in the credit and financial markets.” He says the project has had no cost overruns.

Two other towers are under construction and 560 pre-sale buyers have made deposits. But Millar says “Their deposits are safe and we are confident we will arrive at a new financial partnership.” He says less than $100 million is needed, but that’s almost a third of the total estimate of $350 million.

update: If you are an Infinity buyer and would like to talk to a reporter about this situation, Jeanette requests that you call the CTV news hotline at 604-609-5800.

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Anonymous

If you care to follow the "restructuring" by the Monitor

http://www.pwc.com/extweb/service.nsf/docid/9904E

NO -LYMPICS

Hmmm

Good stuff !

anonymous100

Discovered this information – dated June 2007 reference: http://www.fasken.com/jung-development-arranges-f… Client Jung Development Inc. On June 13, 2007, Korean developer, Jung Development Inc. closed a $220 million major construction financing. Jung is among the largest Asian development companies operating in B.C. $170 million of the $220 million financing facility was committed by a syndicate of senior lenders led by CIBC and including RBC, Woori Bank of Korea (the largest financial group in Korea) and BCMP Mortgage Corporation, and $50 million mezzanine financing facility was committed by Lehman Brothers Holding Inc. in U.S. but led by Lehman's Korean operations. Fasken Martineau advised Jung Development in this transaction with a team from the Real Estate and Asia Pacific Groups including: Edmond Luke, Ian Cassie, Allison MacInnis, David Martin, Samien Safaei, Don Weaver, Darrell Wickstrom, Kate Seniowski, Jessica Spraggs, Mayne Young and Kwee Downie.… Read more »

Piddlesbby

thereeldeel – pleeeeassse!!! I'm going to assume that you are an agent and your office is feeding you this bs optimism. We are going into a recession, the economy goes in cycles, this was predicted to happen. My developer friends have told me to wait until the end of 2009 to buy and although I didn't believe them when they told me 3 years ago, I'm sure glad that I waited. As you know, the only people who are buying are the ones who just sold and need a place to live!!! Once that is done, it's done. Talk to me next year when you are working part time at the Superstore with a hope and a prayer that you sell that one condo in Chilliwack you have listed. Sorry, but it's the way the business goes. It's not rocket… Read more »

Anonymous100

"Freako", you are right – there is no way that Lehman's demise should be used as Infinity's excuse. Mr. Millar (spokesman for Fasken et al law firm) is incorrect with his information. He is not equipped with "real facts" or deliberately trying to misinform the public. Mr. Jung (the original deal maker) was taken over by Mr. Yang (and is not a reputable deveoper as Mr. Millar has stated nor does his group have sufficient knowledge or experience to carry out this scale of operation). Mr. Yang gets advice from Byron Lee (another lawyer) and they extensively recruited Korean management people through the local Korean papers believing they knew what they were doing. Secondly, it is not a Korean Company – Jung Development is a Canadian company with Korean owners. If the papers states they need $100M and also say… Read more »

freako

Since Lehman Brothers collapsed, the financing for Infinity has dried up and they can’t pay the bills.

The article referred to Lehman as the "original investor". This does not add up. Why would an investment banker on Wall Street make a direct investment in a Surrey condo. More likely, Lehman may have had something to do with underwriting the financing, but if that is the case, Lehman's demise shouldn't affect Infinity. Convenient excuse?

thereedeel

Nothing ever stops. Real Estate continues to be bought and sold, albeit at lower prices, people still go to work, take the kids to school, etc etc. 33' x 115' building lots in East Vancouver were as high as $520,000. I've just witnessed 2 lots (with small homes) sell for $412,000. with multiple offers. I've seen homes at $900,000 sell for $750,000. Multiple offers. know of a house in Surrey that was listed and sold in one day with multiple offers because the price was bang on. There's still a lot of people out there with $$ so don't kid yourselves about a "crash". We ain't even close. This is a healthy, much needed adjustment in price that happens in a market that is governed by Supply, demand, interest rates, net-in migration, and affordability. Vancouver is a beautiful place to… Read more »

NO -LYMPICS

poooooooooooo We'll, back to the affordability issue. The real estate auction phenomenon has established itself in BC already. We may see this more and more on this in the near future. Maybe then we will see people jumping in and being able to afford what they couldn't previously. What is going on now may show too much product , nervous buyers and nervous lenders moreso than ever before in the past. re DCC's. Actually some of the tables I see show DCC's for higher density are propertionally higher than say more detached units( ie SFH). DCC's seem to end more a flat rate for SFH,and regardless of the lot size. DCC's for multi – family tend to nail the purchaser for every sq. ft. as by definition they don't have any outside yards other than shared via the strata. DCC… Read more »

NO -LYMPICS

hey Tony Danza ….

No..actually a good on – line cage match debate sometimes lives things up. Simply close your eyes when you are scrolling through stuff you don't like.

poooooo

hehehe, i duno no-lympics, yes oversupply creates lost equity for those that do not know how the market works, but what would you rather do? no create affordable units? infact, you can only start to reduce and hopefully eliminate asset depreciation and equity loss by encouraging an increase in supply which will reduce swings in the market. eh eh eh?

i'm really quite suprised you just enlightened to the whole concept of inflation!!!!! YIPEE

oh, and the city increased DCCs because the market rate for construction labour and materials increased so much so due to developers wanting more and more right?? oh what you ask? single family sprawl, because arnt DCCs disportionally lower for multi-family? incentive much? sadly city halls are still filled with old mentalities, on both sides of the counter.

Tony Danza

Is it that bowl of ganj I just pounded or does it seem like NO-LYMPICS and poooooo are a twelve year old arguing with himself?

Piddlesbby

Thanks poooooo and no-lympics, very entertaining posting! I’ve been on the sidelines watching for the last 5 years and I can’t wait to buy at rock bottom prices. Have been renting the same place for many years and my landlord has kept my rent low, so there was no reason to buy in this crazy market. I’ve saved a lot and my income has almost doubled, so I’m looking forward to finding something big and new. I’m still going to wait another year and either buy a sweet townhouse downtown or two condos east of Burnaby. Who would have thought??? All these years I have been listening to friends and family tell me that I better get into the market, it’s only going to go up, up, up, you know the Olympics are coming and all….blah, blah, blah. Now I’m… Read more »

NO -LYMPICS

Poooooooooooooooo Please don't try to impress me with framed sheepskin backed expertise. That's a future cage match. No…this is the era where all the economic formulas are turned upside – down and inside – out. A hot market produces a lot of crap aka leaky condos. Oversupply creates loss in equity ie depreciation for those who don't speculate but get punished fiscally by those who do. The current market was based on parties who thought the party would never end. As I posted earlier…the U.S. has homes being auctioned off for the price of a good used import car. Where are all the buyers clammering to buy these "deals" ? You forget that once the market gets hot, and the builders anticipate a lot of demand, all the cost go up, adding to the sticker price. The builder builds because… Read more »

Vansanity

alexcanuck – it's all good.

poooooo

btw, please don't be offended with any particular points that I made, I just get very passionate about this issue while seeing many developers take advantage of the less fortunate. I am only trying to create an equal environment for all.

poooooo

no-lympics, i stated that I had experience, not that I am currently working in that capacity. let me guess, you are a developer who rose from the ranks with no formal education and are pissed off that planners are telling you to put some landscaping in your development or do add some glazing to the facade? please, you and I both know that developers still control development by pissing on politicians who are too scared to back away for fear of losing their support and funding. The real point is, whats wrong with increasing supply? That only leads to affordability through less demand…maybe you should go back to school and take microeconomics 100. new High-rises are empty at night in d/t vancouver because people like you want to regulate supply therefore creating a speculator mentality that prices will only increase… Read more »

punface

Hmmm I've travelled and lived quite a few other cities and I think the Skytrain is a great system for a city of our size. It has more frequent service than anywhere I've been. My only complaint would be the noise – it seems a lot louder than other systems. I'm even excited for the new line to open.

NO -LYMPICS

Hey pooooo (Now that you have calmed down…) Sorry, but I have been dealing with City Planners for years. In my view, they are simply obstructionist bureaucrats with far too much power as they pimp their "vision for the future " ideas. I am dealing with a "young" planner right now who I can see is getting his strings pulled by their superiors to lie and obstruct us. Please excuse my REAL WORLD cynicism. You are talking old school , mes ami. Yeah yeah yeah re density = affordability mantra. The reality is your bosses get their ears bent by the big boys to re-zone land and create a lot of displacement so they can pimp the land and the air above it with hi – rises. I'm not saying City's should regulate supply, but they should have used little… Read more »

patriotz

The 25 billion bail out last week didn’t seem to get much press… More likely is that this was a pre-emptive CMHC bail-out. But it's CMHC that is buying the mortgages (that it has already insured), not the government. Flaherty says the Canada Mortgage and Housing Corp. will take steps to maintain the availability of longer-term credit by purchasing up to $25 billion in insured mortgage pools. http://cnews.canoe.ca/CNEWS/Canada/2008/10/10/704… CMHC has been doing this for years. Google "Canada Housing Trust". http://www.financialpost.com/scripts/story.html?i… The idea behind CHT's issue was to finance the purchase of housing loans by issuing bonds and using the proceeds to acquire mortgage-backed securities. "Canadian home buyers will benefit because the bonds will provide the mortgage market with an alternative and competitive source of funds which will help lower mortgage financing costs," said Alfonso Gagliano, the Minister responsible for CMHC… Read more »

patriotz

"Densifying reduces infrastructure costs.”

That’s assuming that stuff is in walking distance,

No it isn't. For a given number of people, the higher the density, the lower the infrastructure costs per capita. How hard is that to figure out really? The more spread out people are, the more roads, sewers, hydro lines, etc. you are going to need per capita.

Isn't it obvious that 1000 highrise units in Whalley are going to need less new infrastructure than 1000 SFH or townhouse units in a new development in, say, Fort Langley?

When densifying an existing area the extra use of existing infrastructure is a bonus, but the cost difference remains even for brand new development.

http://www.endofsuburbia.com/

poooooo

no-lympics, i have no vested interest in real estate at all at the moment. i have saved quite a lot for my young age (young 20s), more so than many people so dont start thinking im some yuppie fool who understands absolutely nothing about the financial sector. I just get upset when people are misinformed about what it takes to create affordability and proper 'planned' cities. Planning is my academic background and I have experience working in the planning department at city hall, so I understand what actually takes place. I am not a fan of beer as much as many canadians are, nor do I smoke, so please enough of the canadian-washing. Oh, and concerning Rennie, he is the utlimate piece of shit. I don't know how he can sleep at night in his bed filled with money. I'd… Read more »

NO -LYMPICS

Hey poooooooooooooooooooo aka Bob Rennie

( BTW I made sure I got a hard copy of your post before the Pope exorcises it ).

Reading between the lines…I'm sorry to hear you lost a pile speculating on condos. No wonder you are less than diplomatic ….Tut Tut.

You obviously have things figured out…no sense preaching to the perverted.

Now go back and finish your first beer (and stop smoking in church while you were text messaging that intelligent comment).

Bye bye Bob "poooo" Rennie

PS Can I just call you sh*thead for short?

poooooo

no-lympics, you're an idiot, wtf, that's why there are so many NIMBYS because people like you hawk this shit all the time. high-density development must be located along mass transit lines in order to move people around the city. how the fuck do you think people are suppose to get around in a dense urban environment? their cars? stfu. increasing density increases affordability as units become cheaper to create in light of the fact that you have more units on one piece of land rather than everyone building a single family home and then having society at large pay for the lack of economies of scale. please, shut up. i can't seem to stop saying that, cause well I've had enough of stupid people like you making me look bad.

condohype

Anonymous, realtor-marketers get paid for selling. It's a commission business. Rennie makes money when units sell. It's been reported that his firm charges around $50,000 per unit sold. Nobody's paying him when the product's not moving. But don't think for a minute that he's hurting. He's set up for the rest of his life. I mean, he's Bob Rennie!

YLTNBoomerang

Big droppers out there: v736015 23.4% overall drop now at assessed value after 153 days on market v724337 12.5% overall drop now at 2.2% below assessed value after 216 days on market v7712572 17.7% overall drop now at 4.6% below assessed value after 139 days on market v724211 13.8% overall drop now at 1% below assessed value after 216 days on market v726308 5.9% overall drop now at 3% below assessed value after 76 days on market v733279 17.7% overall drop now at 1% below assessed value after 126 days on market My favourite as posted earlier is still: v731607 14.9% overall drop now at 9% below assessed value after 140 days on the market BTW, I will only post those that are below assessed value as there is no point putting v726098 on even though after 280 days on… Read more »