BDO appointed sales officer over Ottawa development site

BDO Canada Limited was appointed sales officer over the property municipally known as 400 Coventry Road, Ottawa on May 29, 2026, on application by 8944989 Canada Inc., a Groupe Dumont company, against Groupe Oradev Inc.

The application was brought under the Partition Act after the parties acquired the property as tenants in common. 8944989 Canada sought an order directing the sale of the property, payment of BMO’s registered charge from the sale proceeds, and a process to determine the parties’ entitlement to the net proceeds. In the alternative, it sought the appointment of a receiver over the property. The sale process order (which expressly provides that BDO is not a receiver under the Bankruptcy and Insolvency Act and will not take part in the management or supervision of the property) ultimately went on consent.

The property is a nearly five-acre commercial site in Ottawa’s Overbrook neighbourhood, near the St. Laurent Shopping Centre and the Tremblay light rail transit stop. It currently includes commercial, industrial, office and warehouse space, as well as surface parking. The original redevelopment concept contemplated demolishing the existing buildings and building seven mixed-use towers ranging from 18 to 30 storeys.

8944989 Canada and Groupe Oradev signed the agreement of purchase and sale with Enbridge Gas Inc. on February 4, 2022, for a $20 million purchase price, subject to adjustments. The APS was amended three times, including a June 30, 2022 amendment extending closing to July 5, 2024, and a January 6, 2025 amendment extending closing to May 1, 2025 and requiring additional pre-closing payments.

The dispute centres on how the acquisition was funded and who should benefit from the sale proceeds. 8944989 Canada says Groupe Dumont funded $3.75 million in non-refundable deposits, more than $1.654 million in extension, development, administrative, tax and utility costs, and the full $16.539 million required on closing. It also says Groupe Oradev made no payments toward the property before or on closing.

The record describes a failed effort to use Investissements 400 Coventry Inc. as the property-owning vehicle. That company was incorporated with 8944962 Canada Inc., another Groupe Dumont holding company, holding 65% of the shares and Groupe Oradev holding 35%. As closing approached, the parties disputed whether the APS would be assigned to that company and whether title would be registered in its name. Groupe Oradev commenced urgent Quebec proceedings on April 28, 2025, seeking orders requiring 8944989 Canada to fund the remaining closing amounts and have the property registered in the name of Coventry Corp. That motion was dismissed.

The sale closed on May 8, 2025. According to the applicant, BMO financing was not available on closing because Groupe Oradev had not signed the financing documents or provided required closing materials, including survey, site plan, appraisal and environmental reliance documents. BMO financing later closed on June 17, 2025, with a $13.655 million charge registered against title and a notice of assignment of rents, and 8944989 Canada received $11.019 million from the loan proceeds as partial reimbursement for funds advanced on closing.

Under the sales officer order, 8944989 Canada retains control and management of the property pending sale, subject to monthly reporting to Groupe Oradev and the sales officer. It cannot make changes to the management, use or operation of the property that would materially affect value or income-generating characteristics, or bind the parties in respect of use or operation, without Groupe Oradev’s written consent. Disputes can be determined by the sales officer, or returned to court if the sales officer is unwilling or unable to decide them.

The sales officer’s mandate includes preparing a sale plan for court approval, completing remaining site plan agreement steps if desirable to maximize value, engaging a sale agent and other professionals, marketing the property, soliciting and negotiating offers, applying for vesting orders, and reporting to Court on the sale plan and its implementation. Sale proceeds are to be held in trust by the sales officer pending further order, subject to a priority waterfall.

BDO is the sales officer. Counsel is Miller Thomson for 8944989 Canada, Perley‑Robertson, Hill & McDougall for the sales officer, and Rasmussen Starr Ruddy for Groupe Oradev.