Comments on: Infinity Surrey bankruptcy trouble

By: Anonymous

Anonymous — Sat, 13 Dec 2008 20:36:55 +0000

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

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

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By: NO -LYMPICS

NO -LYMPICS — Mon, 20 Oct 2008 17:13:54 +0000

Hmmm Good stuff !

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By: anonymous100

anonymous100 — Mon, 20 Oct 2008 10:35:17 +0000

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. The team worked over a period of four months to negotiate and complete this financing.

The Real Estate Group is also advising Jung on the development and construction of the project – five 36-storey highrise residential mixed-use towers in Surrey across from the King George Skytrain Station. Tower 1 with 345 condominium units is scheduled for completion in November 2007 and Towers 2 and 3 with combined 690 units are scheduled for completion in September 2009, with more work required before the Project is completed.

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By: Piddlesbby

Piddlesbby — Sat, 18 Oct 2008 11:03:36 +0000

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 science, it's a cycle and the boom will be back in 7-10 years.

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By: Anonymous100

Anonymous100 — Sat, 18 Oct 2008 08:32:58 +0000

"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 they are 3/4 completed there is something seriously wrong. A layman may beieve Mr. Mllar but not experienced professionals. Mr. Jung was recently trying to start another King George project of similar scale and has not been involved with Mr. Yang's group for many months(nearly 15 months). It is Mr. Yang's senior management group that has conributed to his problem. The Lehman news was their excuse. What is very wrong is that these highrises are costing more to build than what the pre-sold values collectively can generate. Maybe their "budget" or "forcasting" number were being constantly revised (every week) without any "controls" in place. A tiger by the tail was too much for them to handle.

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By: freako

freako — Fri, 17 Oct 2008 22:39:47 +0000

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?

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By: thereedeel

thereedeel — Fri, 17 Oct 2008 11:41:39 +0000

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 live. its expensive in every way, and unfortunately its going to stay that way. those looking to buy should really keep their radar up as number of developments that have been "shelved" in the last year is mind boggling. Know what that means? the supply gets gobbled up, there's nothing to replace it, and here we go again.......... watch and see.

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By: NO -LYMPICS

NO -LYMPICS — Fri, 17 Oct 2008 06:29:17 +0000

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 costs are just pimping by the City. They don't seem to realize that they may get the same coin by keeping the DCC's reasonable and encouraging development, which fits with your affordability issue. What often happens is the City waves the increased DCC "red flag" far enough in advance and hopes a lot of developers will pay off the DCC's under the old DCC rate, and thus the City coffers get filled up. Its simply a scam. Epiphany re inflation ? No, that's obvious...not sure your point. Inflation via added Gov't costs, speculation due to cheap money and rising building costs. Time will tell

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By: NO -LYMPICS

NO -LYMPICS — Fri, 17 Oct 2008 06:07:23 +0000

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.

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By: poooooo

poooooo — Thu, 16 Oct 2008 23:25:55 +0000

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.

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