Toronto The One | 328.4m | 91s | Mizrahi Developments | Foster + Partners

Northern Light said:
I'm not sure why you're linking 'topping it off' to shedding debt or breaching existing sales contracts.

These are not inherently linked.

The Creditor process will open up the debt to restructuring; lenders will almost certainly take a haircut.

Existing contracts could be voided, but returning deposits on 675M is no small matter.

Given all the un-sold inventory here. I'm not sure that makes sense; but it would depend on how much make-up space there is if units were re-sold; in this market though, re-selling might not pay off.

The market will be different by the time this one reaches the 91st floor.

But we shall see.
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I’m referring to mitigating losses. Top it off as soon as possible. Stop throwing good money after bad. A bankruptcy would likely wipe the contracts and the buyers would get their deposits back. Presumably they’re sitting in an insured lawyer’s trust account safe and sound or secured by a bond from a reputable insurance company though it wouldn’t surprise me if the deposit money somehow vanished too.
 
wopchop said:
Developers are required to take surety bonds to satisfy Tarion requirements to protect deposits, not the project construction.

There is nothing to say that after he fired the original CM, Mizrahi could not have setup a contracting company to complete the work, and get it bonded. It sounds like this isn't the case though.

What has happened is that the new owner (the receiver, essentially) has selected a new owner's representative (Knightsbridge) to oversee the developer/construction manager (Mizrahi). Don't forget this project has gone into receivership not bankruptcy, it is a bit different. Firstly it is not voluntary, so this was sprung on Mizrahi by his secured creditors. Secondly, in receivership, the debts are not wiped out at all.

The fact they are continuing construction and even injected money is a good sign that the receiver believes continuing construction is the best way to maximize paying back the secured debt. A sale is always possible, but who would buy a half sold building that requires hundreds of millions of dollars to complete construction?
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Lots of people- at 25-50 cents on the dollar.
 
Tesla said:
I’m referring to mitigating losses. Top it off as soon as possible. Stop throwing good money after bad. A bankruptcy would likely wipe the contracts and the buyers would get their deposits back. Presumably they’re sitting in an insured lawyer’s trust account safe and sound or secured by a bond from a reputable insurance company though it wouldn’t surprise me if the deposit money somehow vanished too.
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The thing that gets missed is that you think these projects are built for housing or luxury. The developers build them as a look what I can do there will be people that will get involved just for the sake of saying that they were involved in building a 91 story building
 
Next milestone everyone will be watching for is the corners being formed and completed on the second mechanical level

Edit. Do they have to manually lift the form? Ledge from the mechanical level to the other floors once they have three levels above formed. Just asking as that is what it appears
 
A little update from the DVP this morning.

20231025_084846.jpg
 
Northern Light said:
In reading through the documents fully. Most of the financial arrangement/loans/beneficial ownership are known to the UT community.

The first bit I don't believe I had seen discussed is that senior creditors have not authorized the increase in height to 91s as yet.

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The dates (projected completion) and budget have been mentioned more than once are worth of a contextual post here:

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On the quantity and distribution of debt:

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The discussion on the interest rates and how they became so cumulative onerous begins on p.50

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Further info on projected timeline and budget:

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Important upcoming Milestones:

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Did my little eyes see right? Mizrahi and Coco are both guarantors under the credit agreement?! (p. 14 not shown in the above excerpt)
 
Collingwoodbuildinglover said:
If they had the ability to get up past the current mechanical level with cladding and build out I imagine they could do a staged entry to begin recouping investments
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That seems to have always been the plan. and being behind on that plan is likely a big source of their financial problems. Obviously there are many issues here, but certainly the lack of revenue coming in from not having Apple paying rent (and maybe also the hotel could have opened early?), isn't helping in terms of their inability to pay off debt. Now obviously they'd need to get Apple to come back (or get an equivalent tenant), but I'd guess part of the reason they're continuing to build right now is to try and get to the point where the lower levels can start generating revenue to offset some of the debt.
 
TossYourJacket said:
That seems to have always been the plan. and being behind on that plan is likely a big source of their financial problems. Obviously there are many issues here, but certainly the lack of revenue coming in from not having Apple paying rent (and maybe also the hotel could have opened early?), isn't helping in terms of their inability to pay off debt. Now obviously they'd need to get Apple to come back (or get an equivalent tenant), but I'd guess part of the reason they're continuing to build right now is to try and get to the point where the lower levels can start generating revenue to offset some of the debt.
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I believe it is a combination of wanting to get the lower levels finished for occupancy and even if work stops rental fees on equipment still accumulate as well as utility costs so it is better to keep moving forward
 
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