AlixPartners appointed receiver of Nova Ridge’s Manderley condo project

Nova Ridge (Manderley) Limited Partnership and Nova Ridge (Manderley) GP Corp. were placed into receivership on June 23, 2026, on application by United Overseas Bank Limited (UOB). The receivership covers the debtors’ remaining interests in The Manderley condominium development at 1478-1496 Kingston Road in Toronto, including unsold units, unclosed purchase agreements and related personal property. UOB and Laurentian Bank of Canada were owed approximately $21.12 million under the construction facilities as of June 8, while UOB was separately owed approximately $8.91 million under a mezzanine facility, excluding continuing fees, costs and other reimbursable amounts. Approximately $605,737 was also outstanding under the letter of credit facility.

Nova Ridge substantially completed The Manderley, an 11-storey development containing 194 residential condominium units and 2 ground-floor retail units, on April 28, 2026. The substantial completion certificate was published on May 5. Both retail units had closed by the time of the application, while approximately 125 residential units had sold and closed, leaving 69 units outstanding. Of those, 23 were not subject to agreements of purchase and sale. The project is located in Toronto’s Birch Cliff neighbourhood at the intersection of Manderley Drive and Kingston Road.

The financing originally comprised a construction facility of up to $79.916 million, a $2.5 million letter of credit facility and a mezzanine facility that was later increased to $9.05 million. After several extensions, the construction facilities matured on January 31, 2026 and the mezzanine facility matured on February 28. The debtors did not repay the facilities. Under forbearance agreements dated February 1, the lenders agreed to hold off enforcement until the earlier of April 17 or a termination event, subject to various conditions. The debtors failed to make post-forbearance interest payments or pay the retainer and other lender costs, and UOB delivered demands and notices of intention to enforce security on April 21.

The filing also attributes the debtors’ difficulties to slower condominium sales, unpaid construction costs and the handling of project proceeds. As of April 30, trade payables totalled approximately $3.3 million, including approximately $1.3 million outstanding for more than 60 days and approximately $700,000 outstanding for more than 90 days. By June 10, registered construction liens included claims of $108,081 by Ultimate Fire Protection Ltd., $8.40 million by Wilkinson Manderley Inc. and $615,779 by Nekison Engineering and Contractors Limited. The lenders also learned that approximately $3.6 million of project funds had been deposited into Toronto-Dominion Bank accounts rather than the required UOB project account. Nova Ridge later paid approximately $32,000 from those accounts to discharge a subcontractor lien without notice to the lenders, before transferring the remaining funds to UOB on or around May 8. HST arrears exceeded $230,000.

Justice Myers found that Nova Ridge had been unable to sustain itself through its own sales program and that a neutral court officer was required to sell the remaining units, either individually or in bulk, while addressing competing secured, lien and statutory claims.

AlixPartners is the receiver. Counsel includes Gowling WLG for UOB, McCarthy Tétrault for the receiver, and Weirfoulds for Wilkinson Manderley.