KSV appointed receiver over Westbank Vancouver rental tower project

5055 Joyce Holdings Inc. and 5055 Joyce Property Inc., entities tied to a near-complete mixed-use rental development known as the “Joyce 2” at 5083 Joyce Street in Vancouver, were placed into receivership on April 27, 2026, on application by OPTrust Joyce Financing Corp., owed approximately $109.2 million.

The project consists of approximately 4,500 square feet of retail space, 360 residential rental units, and 87 underground parking stalls. 5055 Joyce Property Inc. is the registered owner of the property, while 5055 Joyce Holdings Inc. is the beneficial owner. The project is near completion, leases have already been executed with commercial and residential tenants, and certain residential units are already occupied.

The receivership proceedings were initiated by OPTrust following the maturity of a loan agreement originally entered into on May 19, 2021 and subsequently amended several times. The financing facility, initially advanced at $40 million and later increased to $85 million, was secured by mortgages, personal property security, share pledges, project agreement assignments, and guarantees from several related parties, including Westbank Holdings Ltd.

The OPTrust loan matured on December 31, 2025 and was not repaid. OPTrust issued a demand letter on January 13, 2026 declaring an event of default. It is currently owed approximately $109.2 million.

OPTrust is subordinate to senior secured lender National Bank, owed approximately $165.6 million, which delivered its own notice of default citing at least six defaults under its financing arrangements, including failures to deliver financial reporting, missed interest payments, unfulfilled equity infusion obligations, unreported cost overruns, material adverse change concerns, and construction lien registrations.

The filing materials describe mounting construction and liquidity pressures as the project approached completion. Estimated project cost overruns amount to approximately $15.5 million, including more than $8.2 million in additional hard construction costs needed to complete the development. The materials also reveal an escalating series of builders’ liens filed against the property beginning in late December 2025.

In a joint statement provided to The Realist, which first reported on the receivership, Westbank and OPTrust said the appointment was sought “cooperatively with Westbank” to ensure the parties’ shared objectives of facilitating the completion of the project in an orderly and timely fashion.

KSV is the receiver. Counsel includes Osler for OPTrust, Cassels for the receiver, Kornfeld for the companies, and McCarthy Tetrault for National Bank.