Interim receiver appointed over The Marine Building in Montreal

An interim receiver was appointed over the property of La Société Immobilière en Propriété Marine Ltée / Marine Property Leaseholds Ltd. (“Marine Property”), owner of the Marine Building property in downtown Montreal, on April 16, 2026 on application by Equitable Bank, which says it is owed more than $58 million amid prolonged defaults, unpaid taxes, and an operational collapse that threatened the value of its collateral. The bank also said it intends to seek a full receivership with sale powers after statutory notice periods expire on May 22, 2026.

The real estate at issue includes lot 1 340 207 and the buildings municipally known as 1023-1045 Sainte-Catherine Street West and 1411 Peel Street, a high-profile commercial asset in Montreal’s Ville-Marie borough.

Equitable originally advanced a $45 million facility in December 2021 with a 24-month term. The debt was secured by a first-ranking hypothec of $56.25 million, covering the property, rents, insurance proceeds, and related movable assets.

Defaults emerged in 2023 when Marine Property failed to pay $1,779,922.92 in 2022 municipal taxes and $799,097.46 as the first 2023 installment, according to the application. Equitable later said unpaid 2023 taxes had risen to $1,848,945.17, while missed first and second 2024 installments totaled $1,445,146.98 including interest and penalties.

Rather than enforce immediately, the bank entered a forbearance deal in August 2024. Under that arrangement, Marine Property acknowledged at least $45.8 million was then due and payable. Equitable also added $2,547,217.28 of financing earmarked for outstanding tax obligations and obtained added collateral over a related Esplanade Avenue property for $5 million plus a 25% additional hypothec.

The lender later advanced more funds tied to a lease with Lululemon Athletica Canada Inc. signed September 25, 2025. The deal required Marine Property as landlord to provide $2.5 million in improvement allowances, which Equitable agreed to fund directly. A second hypothec for $65 million plus an additional 25% charge followed in November 2025.

Equitable says it lost confidence in management after it learned Marine Property had entered a leasing mandate with outside brokers without prior lender approval while negotiating fresh accommodations. The bank also cited failures to provide financial information and resistance to appointing a property manager, and further alleged basic property functions were no longer being handled, including delays in signage approvals which jeopardized Lululemon’s opening.

Deloitte was appointed as interim receiver. Counsel is Langlois Lawyers for Equitable Bank, Fasken for the interim receiver, and Spiegel Ryan for the company.