Green World Construction Inc., Receivership

Green World Construction Inc., an Ontario-based real estate development company, was placed into receivership on May 20 on application by 2106580 Ontario Inc. (“2106580“) and Osmington (Wood Street) Inc. 

The company owns a 55-acre property (the “Property”) comprised of: lands municipally known as 175-199 Essa Road, Brampton, Ontario, acquired from 2106580 (the “Essa Road Property”); and lands municipally known as 50 Wood Street, Barrie, Ontario, acquired from Osmington (the “Wood Street Property”). The Property is intended to be developed into 4054 residential units, as well as various commercial uses and a school block. No development has occurred and no units have been pre-sold.

In connection with Green World’s acquisition of the Property, 2106580 and Osmington extended vendor take-back mortgages in the principal amount of approximately $48 million, $31.7 million of which remains outstanding. Green World repeatedly failed to pay the principal or interest owing under the mortgage as they became payable, despite multiple concessions by 2106580 and Osmington.

KSV is the receiver.

Counsel is Osler for 2106580 and Osmington, Paliare Roland for the receiver, Rosenstein Law for the company and Chaitons for MarshallZehr.