DaninToronto
Active Member
Today's update summary:
NOTHING.
NOTHING.
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Canuck
Active Member
Yes.
Edit:
Janbe - we get it. You called; the receptionist/sales did not know about the reports in The Star. Fine
Everyone else - I deleted a lot of the posts that dealt with Janbe's phone calls/posts. It was too much. If you think you said something really relevant and worth saving that didn't deal with Janbe's phone calls, PM me and I'll retrieve your post. Otherwise let it go.
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kety
New Member
I'm afraid I agree... Knowing Bazis, the money is lost. Very sorry. What about a lien on the place? Would that work?
gregdavismail
New Member
What happens to all of the real estate agents that recommended this property to their clients? Hopefully they forego the commission. No reason they should profit from this mess.
Redroom Studios
Senior Member
maybe its different with condos, but agents dont usually get commissions until after the deal closes and buyers are given the keys.
yyzer
Senior Member
Funny you should ask that - Bazis, like many developers, paid out a portion of the commission within 90 days of the contract signing, with additional commission to be paid at closing....
I am pretty certain that, in the event of cancellation, the agents will be legally required to repay the money they have received back to Bazis. The actual legal requirement will be for the agents' broker to repay - and some downtown companies may be on the hook for dozens of sales....it could be a major problem for these agents and their companies...
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Observer Walt
Senior Member
That depends on whether their deals close. If they do end up eventually closing, why shouldn't the agents get the commission, which they worked for?
The situation may indeed be a mess, but real estate agents who worked in good faith did not cause the mess. Condo units were being offered for sale, and they sold them. That's how it works.
I'll take it a step further and say that Bazis made some mistakes (in hindsight, which is always 20/20), but I would suggest even they did not act unreasonably as far as I can see at present. They put forward an ambitious but not unreasonable proposal. The collapse of Lehman and the worldwide credit crunch was an unprecedented situation.
Mike in TO
Senior Member
The $46 million loan was from a French bank (Société Générale) - the Toronto consortium got a hold of the loan when the French bank got into financial troubles of their own... not sure if that has been noted yet with all the back and forth over the last few pages that aren't worth reading... a suggestion that as the forum grows in the number of members that make it a lot harder to read anything when so many posts don't contain any actual information... the quantity of postings is growing exponentially, yet the quality doesn't seem to be improving much...
DZ2007
New Member
I'd like to claim credit where credit is due, if possible. You may notice that back on September 18th I posted that the project was in jeopardy and would probably not go ahead. Well I basically got laughed out of the thread. Now it's finally official, ten months later ...
Enough said.
Granny
Active Member
You must learn to accept your lot in life, DZ.
Oracles of wisdom with the ability to see into the future with uncanny clarity, in other words, individuals like you and myself, must accept the derision of the common rabble.
vultur09
Banned
ehhhehhhhmmmm......
probey
Active Member
If the project is really going down, will Bazis pay interest to buyers deposits?
Solaris
Senior Member
Novae Res Urbis: 1 Bloor in Trouble - 80 storey condo stalls
additional report from Novae Res Urbis ... some info repeated ~
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Friday, July 24, 2009
The vacant lot at the southeast corner of Yonge and Bloor streets will likely stay vacant for the time being. Bazis International, the Kazakhstan-based developer behind the ambitious 80- storey 1 Bloor condo tower, has been waging a court battle this week against efforts by local lenders to force the project into receivership.
Michael Gold, head of Bazis’ North American arm, called the court proceedings a “back-door acquisition†of the prime location in a statement released on Monday. Bazis had taken out a $46-million loan from French bank Société Générale. When the bank ran into financial troubles a group of Toronto lenders bought up the loan. Bazis is in default on the loan, a situation which Gold attributes to the ongoing global financial crisis.
“Bazis was caught by events well beyond its control,†Gold said in Monday’s press release. “It has been impossible for any developer to arrange financing on projects of this scope because of the sub-prime meltdown and its impact on lenders.â€
However, Gold pointed out that on July 13 Bazis bought Hayden Street, a lane bordering the site’s southern end, from the city for more than $1 million, asserting that the developer still plans to go ahead with the project. In Monday’s statement, Gold asserted that “you don’t spend $1 million on something like that if you are not committed.â€
A court decision on Monday has given Bazis until mid-August to finalize the financing required to replace the defaulted loan.
“We anticipate paying off that debt obligation and successfully resolving what has been a challenging situation for Bazis, a large number of buyers and commercial and retail leases at 1 Bloor,†Gold said in a statement released on Tuesday.
When contacted through a public relations representative, Gold declined to comment further, citing the ongoing court case.
Briar de Lange, general manager of the Bloor-Yorkville BIA, told NRU that the news is “a big disappointment.â€
“It would have been a huge improvement to the corner,†de Lange said. “The concern now, if it’s not moving ahead and there isn’t going to be a new buyer and a new proposal put through in fairly short order, is that we’re left with a fairly desolate corner.â€
She added that the ongoing improvements being made to that area’s stretch of Bloor Street would stand in stark juxtaposition to the lot if it is left as is for a lengthy amount of time.
“If it’s going to sit vacant for an extended period of time, we certainly hope that the owners will clean up the site to some extent,†commented de Lange. “Given all the improvements that we’re doing to Bloor Street, we don’t want an eyesore left on the corner.â€
When the project was officially launched in October 2007 the developer stated that occupancy would begin by the end of 2011. The original plans for the tower included three floors of retail and a six-storey, 132-room hotel on the lower floors and more than 500-condo units above. (See NRU-Toronto Edition, March 23 and November 2, 2007.)
additional report from Novae Res Urbis ... some info repeated ~
*********
Friday, July 24, 2009
The vacant lot at the southeast corner of Yonge and Bloor streets will likely stay vacant for the time being. Bazis International, the Kazakhstan-based developer behind the ambitious 80- storey 1 Bloor condo tower, has been waging a court battle this week against efforts by local lenders to force the project into receivership.
Michael Gold, head of Bazis’ North American arm, called the court proceedings a “back-door acquisition†of the prime location in a statement released on Monday. Bazis had taken out a $46-million loan from French bank Société Générale. When the bank ran into financial troubles a group of Toronto lenders bought up the loan. Bazis is in default on the loan, a situation which Gold attributes to the ongoing global financial crisis.
“Bazis was caught by events well beyond its control,†Gold said in Monday’s press release. “It has been impossible for any developer to arrange financing on projects of this scope because of the sub-prime meltdown and its impact on lenders.â€
However, Gold pointed out that on July 13 Bazis bought Hayden Street, a lane bordering the site’s southern end, from the city for more than $1 million, asserting that the developer still plans to go ahead with the project. In Monday’s statement, Gold asserted that “you don’t spend $1 million on something like that if you are not committed.â€
A court decision on Monday has given Bazis until mid-August to finalize the financing required to replace the defaulted loan.
“We anticipate paying off that debt obligation and successfully resolving what has been a challenging situation for Bazis, a large number of buyers and commercial and retail leases at 1 Bloor,†Gold said in a statement released on Tuesday.
When contacted through a public relations representative, Gold declined to comment further, citing the ongoing court case.
Briar de Lange, general manager of the Bloor-Yorkville BIA, told NRU that the news is “a big disappointment.â€
“It would have been a huge improvement to the corner,†de Lange said. “The concern now, if it’s not moving ahead and there isn’t going to be a new buyer and a new proposal put through in fairly short order, is that we’re left with a fairly desolate corner.â€
She added that the ongoing improvements being made to that area’s stretch of Bloor Street would stand in stark juxtaposition to the lot if it is left as is for a lengthy amount of time.
“If it’s going to sit vacant for an extended period of time, we certainly hope that the owners will clean up the site to some extent,†commented de Lange. “Given all the improvements that we’re doing to Bloor Street, we don’t want an eyesore left on the corner.â€
When the project was officially launched in October 2007 the developer stated that occupancy would begin by the end of 2011. The original plans for the tower included three floors of retail and a six-storey, 132-room hotel on the lower floors and more than 500-condo units above. (See NRU-Toronto Edition, March 23 and November 2, 2007.)
Condo Queen
New Member
I am pretty sure they will get interest on their deposits. They have to be held in trust in an interest bearing account. I think the deposits totaled like 74 milliion...it was an alright short term investment for them to look on the bright side of things.
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