May 3, 2019
189 Dundas Street West, owner of the property municipally known as 189 Dundas Street West in Mississauga, Ontario, had its property placed in receivership on May 3 on application by West End Motors and Trailer Park Limited (collectively "WEM"). WEM sold the property to 189 in February 2017 for $12.1MM, a sale partially financed by a $9.0MM vendor-take-back mortgage. A second mortgage of approximately $5.7MM was registered over the property on the same date, with those proceeds intended to finance both the purchase of the property and soft costs to be incurred prior to the construction financing of the condominium project. 189, which the applicants allege appears to be connected to Fortress Real Developments, began missing payments on the VTB mortgage in March 2018 and a demand for repayment was made shortly thereafter. The second mortgagees made payments against the first mortgage in order to protect their position but ultimately, after several delays and over the objections the second mortgagees, a receivership order was granted. Rosen Goldberg was appointed receiver. Counsel is Blaney McMurtry for the applicant, Laishley Reed for the company, Dickinson Wright for the receiver and Corsianos Lee for the second mortgagees.