63-unit “English Lane Towns" Phase II project placed into receivership

English Lane Homes Inc., a Toronto developer behind a planned 63-unit townhouse project, was placed into receivership on March 13, 2026 after secured lender Caisse Desjardins Ontario Credit Union Inc. moved to enforce on nearly $17 million in matured debt tied to a stalled residential development in North York.

The receivership relates to lands municipally known as 200 David Dunlap Circle in Toronto, the proposed site of a low-rise, three-storey townhouse development comprising 63 freehold units. The project was intended to be Phase II of a broader multi-phase residential community known as “English Lane Towns”, where Phase I has already been completed. Despite certain site works and municipal approvals, construction of Phase II has not commenced and the lands remain vacant.

English Lane Homes, controlled by developer Mohammad Ghasem Ghods, acquired financing for the project in November 2022 through an offer of financing from Desjardins that included a demand interim construction loan facility of approximately $43.2 million and a letter of credit facility of $700,000. The facilities were secured by a mortgage registered on title to the property and a general security agreement over the developer’s assets.

Under the financing structure, Desjardins advanced $11.5 million as an initial land advance in December 2022 and a further $3.5 million second land advance in January 2023. Three standby letters of credit totaling approximately $1.7 million were also issued under the LC facility.

The lender says the developer subsequently defaulted under the loan documents, leaving nearly $17 million outstanding with interest and fees continuing to accrue. Although Desjardins granted multiple accommodations over more than 8 months and proposed forbearance terms, the borrower did not put forward a viable repayment plan and failed to meaningfully engage in restructuring discussions.

A central issue in the dispute was the project’s inability to meet the presale thresholds required for further construction funding. The financing required the developer to secure at least $52.3 million in presales with deposits of at least 20% of the unit price before construction advances could be drawn. Court materials indicate that only 3 units had been sold, leaving the presale condition unmet.

Desjardins argued that the borrower’s failure to satisfy the presale requirement prevented further advances and undermined the developer’s allegations that the lender improperly withheld funding. The lender also pointed to continuing tax liabilities and the lack of development progress as signs that its security position was deteriorating.

KSV was appointed receiver, with the Court concluding that a receiver-led process would provide the most transparent and efficient mechanism to market and potentially sell the property. Counsel is Norton Rose Fulbright for Desjardins, Loopstra Nixon for the receiver, and Solmon Rothbart for the company.