District Northwest Limited Partnership and 105 University View Homes Ltd., the beneficial and registered owners of certain lands located in Surrey, British Columbia (the “Property”), were placed in receivership on November 8 on application by KingSett Mortgage Corporation, owed approximately $85.7 million. 

The Property is at the end of the rezoning and development phase, with the goal of proceeding with the construction of a mixed-use development project consisting of two towers with 1,023 units known as “District Northwest”. Approximately 90% of the units have been pre-sold.

Since May 2024, the companies have failed to make monthly interest installment payments to KingSett. KingSett has attempted to work with the companies to resolve the defaults and assess whether its security is in jeopardy. KingSett demanded payment of the outstanding balance under the loan in late August. The companies have not repaid the loan.

KSV is the receiver. 

Counsel is Osler for KingSett, Bennett Jones for the receiver and Richards Buell Sutton for the companies.