KSV appointed receiver over 61-unit New Westminster rental building

1274877 B.C. Ltd., Kinnaird Konversion Limited Partnership, and Kinnaird Konversion GP Inc. were placed into receivership on February 17, 2026, following an application by second-ranking secured creditor Price Capital Partners Inc. The order authorizes a court-supervised sales process for a 61-unit rental property at 65 First Street in New Westminster known as Kinnaird Place.

The property comprises 61 strata lot rental suites across 7 developed floors, with underground parking. Legal title is held by 1274877 B.C. Ltd., while Kinnaird Konversion Limited Partnership is the beneficial owner and Kinnaird Konversion GP Inc. acts as general partner. Portage Capital Nominee Corp. holds a first-ranking mortgage and general security agreement. As of February 17, 2026, the Portage indebtedness totalled $18,663,414.38, exclusive of legal and other costs.

Price Capital advanced an interim land loan pursuant to a June 16, 2025 promissory note in the principal amount of $5,902,208.22 at 8% interest. Its security package includes a mortgage, assignment of rents, beneficial mortgage and direction to charge, and a general security agreement. As of October 16, 2025, Price Capital was owed $6,229,333.75. By February 17, 2026, the amount had increased to $6,353,820.29.

Portage issued a demand on October 10, 2025 after an interest payment default. Price Capital followed with its own demand on October 17, 2025, relying on cross-default provisions in its security.

The borrowers ceased making monthly interest payments in September 2025 to Portage and October 2025 to Price Capital, allegedly despite ongoing rental income.

The property was marketed beginning in or about April 2025 through Avison Young Commercial Real Estate Services, LP. Marketing efforts included a data room, broker outreach, online campaigns, and direct contact with developers in the Lower Mainland and Toronto. No offer sufficient to repay the Price Capital indebtedness was received.

An October 30, 2025 appraisal by D.R. Coell & Associates concluded that the property’s market value was below the combined registered mortgages, creating an equity shortfall and a significant deficiency to Price Capital.

The Sales Process Approval Order was granted concurrently with the Receivership Order on February 17, 2026. The process contemplates a stalking horse structure anchored by an agreement of purchase and sale between the receiver and Price Capital. The stalking horse bid sets a floor price sufficient to satisfy all claims ranking ahead of Price Capital, including the Portage indebtedness and receivership charges, with the balance satisfied by set-off of Price Capital’s secured claim. The transaction is to be implemented through a reverse vesting order. The final bid deadline is April 3, 2026.

KSV Restructuring Inc. was appointed receiver. Counsel is McQuarrie Hunter LLP for Price Capital, Cassels Brock & Blackwell LLP for Portage and Bennett Jones LLP for the receiver.