Over in Toronto there’s an ongoing saga of the hitherto poor real estate investment that is the Trump Tower.
Many buyers have tried to walk away from their investments are are being sued by the developer to make good on their agreements.
Buyers complain that vacancy rates for the hotel condo product are higher than forecast and the costs to cover operating expenses are too high.
A group of buyers attempted to escape from their contracts by complaining to the Ontario Securities Commission arguing that the developer provided financial projections which were too high and against OSC rules.
Unfortunately for them, the OSC has just decided that they will take no action on the matter.
“After a thorough review of the matter, we have determined not to pursue regulatory action,” Carolyn Shaw-Rimmington, a spokeswoman for the commission, said in an emailed statement.
The regulator began looking into the matter after a series of investors complained that they are losing money on the suites. Talon International Development Inc., the tower’s developer, has been at the centre of the controversy.
Read the full article in the Globe and Mail.