Keltic’s Nexus Development Falls Into Receivership

Keltic (Prior) Development Limited Partnership and related entities were placed into receivership on September 5, 2025, by order of the Supreme Court of British Columbia on application by secured creditor Shape Capital Corp.

The receivership is centred on the “Nexus” project at 220 Prior Street in Vancouver — a planned 10-storey medical office, manufacturing, and retail complex with four levels of underground parking, designed by MCMP Architects and situated next to the new St. Paul’s Hospital campus. Marketed initially as a $123 million build-to-suit for California-based Masimo, the project was 79% complete by mid-2025 but had stalled amid financing pressure, construction liens, and disputes over the use of project funds.

Shape’s receivership materials point to defaults under its $85 million commitment, missed maturity and extension fees, and allegations that $3.2 million was misappropriated from the project’s holdback account in February 2025, with a further $120,000 withdrawn later in the year. Syncra Construction, the general contractor, subsequently filed its own notice of default and several subcontractors registered liens. With nearly $62 million outstanding by late August, Shape said lender confidence had been lost and sought court appointment of a receiver to preserve value.

Keltic’s leadership, however, has pushed back on aspects of Shape’s account. In an interview with Storeys, CEO Rachel Lei explained that Masimo’s withdrawal from its purchase agreement on December 31, 2024, was a major setback. Masimo forfeited its $21 million deposit and paid $3.6 million in additional compensation, but Lei says Shape immediately reduced its loan commitment from $85 million to $65 million and imposed two new conditions: repayment of $10 million and an additional $10 million equity injection by Keltic (Storeys, Sept. 10, 2025). Lei contends those amendments left the project short of the $30 million needed to complete construction.

Regarding the holdback account, Lei told Storeys that Keltic temporarily borrowed from the funds to keep construction moving and repaid $1.9 million by June 2025, with plans to restore the balance by October. She maintained that the money was used solely for the Nexus build. On the later $120,000 item, Lei said the amount related to a Syncra subtrade to whom Keltic had advanced $200,000; when repayment lagged, Keltic netted off the receivable against the holdback, a step she conceded “could have been communicated more clearly” (Storeys, Sept. 10, 2025).

With Masimo tied up as buyer until early 2025, Keltic had little opportunity to secure new presales before the market softened for strata office units, compounding the financing gap. Lei argued to Storeys that the company was working to return funds and find solutions, but the receivership was granted nonetheless.

The order authorises the receiver to stabilise the project, address contractor claims, and borrow up to $35 million on a priority basis to cover interim expenditures. FTI Consulting Canada Inc. is the receiver. Lawson Lundell LLP is counsel to the receiver, DLA Piper Canada LLP for Shape Capital, Bennett Jones LLP for the Keltic entities and principals, Singleton Urquhart Reynolds Vogel LLP for Syncra Construction, and McKechnie & Company, McLean Armstrong, and Sportschuetz & Company for other lien claimants.