Troubled Developer Urbancorp Sells Projects to HomebuildersBy
Court approves asset sales to Mattamy Homes unit, landlord
Urbancorp projects include townhome sites, condominiums
Urbancorp, the Canadian residential developer that sought bankruptcy protection this year after defaulting on its Israeli debt, sold six of its properties to buyers ranging from local residential developers to a closely held company.
The deals, disclosed in court orders dated Sept. 15 approving the transactions, are the latest step in the restructuring Urbancorp initiated in April when filing for bankruptcy protection. Proceeds from the sale are aimed at paying back homebuyers and repaying debt, including the C$68 million ($52 million) owed to lenders including Toronto-Dominion Bank and Bank of Nova Scotia, and about C$90 million owed to architects and contractors.
Urbancorp sold its planned Woodbine townhouse project to Wang Zhendong Holding Corp., a closely held provincially incorporated business, and its Lawrence project was purchased by Fernbrook Homes, a residential community developer with about half a dozen projects in Ontario. Urbancorp’s Mallow and Patricia sites went to School Sites Acquisition Corp., a company affiliated with Mattamy Homes Ltd. The Bridlepath site sold to Claude Bitton, a local landlord and real estate investor. St. Clair Village, a lowrise condominium planned for Toronto, was purchased by Front Door Developments Inc., another local homebuilder based in Richmond Hill.
The deals are disclosed in court orders approving the transactions. Financial details of the sales, including prices, weren’t disclosed.