Toronto Concord Sky | 299m | 85s | Concord Adex | a—A

The digging continues:

Feb 25, 2020

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Cresford Developments lawsuit reveals tangled web of construction financing

Shane Dingman Real Estate Reporter
Published February 26, 2020

Ms. Athanasoulis alleges that Cresford projects have relatively low equity commitments from Mr. Casey. One of the Cresford projects mentioned by Ms. Athanasoulis is the YSL Residence at 385 Yonge St. Property records show a $100-million loan from private lender Timbercreek Mortgage Servicing Inc., and also a lien on the property from GFL Infrastructure Group Inc., for unpaid shoring work.

Asked about his company's connection to the YSL project, Timbercreek Financial chief executive officer Cam Goodnough said: "We are aware of the allegations and are monitoring the situation as part of our ongoing portfolio management process. We cannot comment on allegations/matters that are unproven and before the court."

Ms. Athanasoulis alleges Otéra Capital Inc. - the real estate finance subsidiary of Caisse de dépôt et placement du Québec - was intended to come on as one of the finance partners for a $623-million construction loan to build YSL. Otéra is already a partner on a $817-million construction loan made in 2018 for Cresford's 33 Yorkville project.

"Otéra is no longer involved in this specific project [YSL]," Amandine Michaud, director of communications and marketing for Otéra, said. "Otéra is aware of the lawsuit. We find allegations worrisome and we are closely monitoring the situation. However, out of respect for the judicial process, Otéra will not comment the alleged facts."
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www.theglobeandmail.com

Cresford Developments lawsuit reveals tangled web of construction financing

Cresford Developments president Daniel Casey and former Cresford executive Maria Athanasoulis have exchanged allegations about each other’s conduct and also about the nature of the business the two were engaged in together as recently as the fall of 2019
www.theglobeandmail.com www.theglobeandmail.com
 
So Tridel could walk in and take these over. I would have though Cresford would be a Tier 1 developer by now. I would hate to see Cresford disappear. They have given us some really solid designs. Imagine if Tridel came in and dumbed down all of the current designs. Remember 300 Front?

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source: https://d3cyxdpup88viv
 
I never saw cresford as tier 1 but on their way to that mark.

As far as tridel taking over. No doubt they would try to cheap out some areas. Spandrel everywhere
 
Tridel is rather conservative. If someone's coming in to buy these, I'm imagining it's an Aspen Ridge, Marlin Spring, Mattamy Homes type of developer with big bucks behind them.

Personally, I would like Ryerson to just swoop in and offer to purchase a stratified ownership agreement to take over the entire podium at YSL.
 
Aspen Ridge has other things to juggle (i.e) WEST condos. Marlin Spring is busy with a lot planned in the coming year. Mattamy Homes builds relatively slow and believe have maxed out their contractors throughout the city. Tridel doesnt need a Yonge&Gerrad location build to their portfolio. Just give it to Canderal.
 
Lawsuit accuses luxury condo developer of causing ‘cash crisis’ affecting four big Toronto projects

By Donovan Vincent Housing Reporter
Thu., Feb. 27, 2020

The Star's article with some content on Cresford's side of the story:

In their statement of defence and counterclaim, Casey and Cresford seek $17.5 million against Athanasoulis, alleging among other things, breach of contract, breach of fiduciary duty, mismanagement and a yet-to-be disclosed amount for defamation of Casey.

In breaching her fiduciary duty to Cresford and Casey, Athanasoulis “intended to create a situation that would force Casey to sell Cresford assets at liquidation value” to a potential purchaser of her choice, the court filing says.

Rather than Casey being the sole person in control of all the key financial decisions of the company, Athanasoulis as COO was closely intertwined with Cresford’s financial machinations, the countersuit says.

For instance, since August 2017, Athanasoulis continued to play a “key role” in securing equity investments required for the 33 Yorkville and YSL projects and was “therefore familiar with the equity requirements and source of funds being applied to meet the equity requirements of the lenders,” the countersuit says.

The countersuit says Athanasoulis wasn’t constructively dismissed, but resigned from Cresford Jan. 2 this year after threatening to do so if an agreement to sell the company to the purchaser wasn’t reached. By resigning she carried out the threat, the countersuit says.
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And some back and forth from both sides:

Athanasoulis says in her claim that Casey repeatedly said he had access to “significant funds” and she believed he would use some of his wealth to solve the company’s cash problems.

But last summer Casey told Athanasoulis that he had substantial mortgages registered against his cottage and his home, that he required between $4 million and $5 million a year to maintain his lifestyle, the statement of claim says.

The court filing goes on to say that in February 2019, when Cresford was “desperate for cash,” Casey spent about $750,000 to buy a house for his son — money, Athanasoulis says in her claim, that should have been used to pay creditors.

But the countersuit says that when Cresford moved to a new office near Yonge Street, south of Bloor Street, Athanasoulis as COO directed the purchase of furniture and decor items worth about $400,000, including a $40,000 mirror.

“Once again there was no suggestion from Athanasoulis of any impending financial difficulties,” the suit says.
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www.thestar.com

Lawsuit accuses luxury condo developer of causing ‘cash crisis’ affecting four big Toronto projects

In a statement of defence and counterclaim, Cresford Developments and its founder have accused the former COO behind the lawsuit of breach of contract...
www.thestar.com www.thestar.com
 
I have some hope for Tridel after 10 York but they need to have a couple products at that quality before I'd consider them a go to. Interested to see if Lanterra can do a bit of a 180 with 50 Scollard but we'll be a waiting a bit for that to pan out so wouldn't want to risk it on this one!
 
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