Labatt Village LP, Labatt Village GP Inc., and Labatt Village Holdings Inc., which own the real property municipally known as 7 Labatt Avenue and 77 River Street in Toronto, were placed into receivership on February 10, 2026, on application by KingSett Mortgage Corporation. PricewaterhouseCoopers Inc., LIT was appointed as receiver and manager on February 10, 2026.
The property is a 1.34-acre site improved with a partially leased commercial building. The property was slated for rezoning and redevelopment into a mixed-use project comprising a 48-storey tower and a 44-storey tower, together containing approximately 1,240 condominium units, approximately 4,500 square feet of retail space, and approximately 12,000 square feet of office space for The Governing Council of The Salvation Army in Canada. No formal development application has been submitted. The existing building is leased to approximately 21 tenants, generating total monthly gross rent of approximately $10,538.24.
The site is encumbered by a first-ranking charge in favour of The Bank of Nova Scotia in a registered principal amount of $75 million. As of January 27, 2026, approximately $60 million in principal and accrued interest was outstanding under the Scotiabank facility.
KingSett holds a second-ranking charge in a registered principal amount of $25.5 million, securing a non-revolving second mortgage land loan established in November 2021 and amended multiple times through March 28, 2025. The loan matured on June 30, 2025. As of January 30, 2026, indebtedness under the facility totalled approximately $23,446,623.06, with interest, fees, and costs continuing to accrue.
The borrowers failed to repay the loan at maturity and have been in default since June 2025. Additional defaults include failure to pay property taxes, with unpaid taxes of approximately $703,000 as of January 28, 2026, and failure to make monthly interest payments since April 2025.
Both the respondents and Scotiabank consented to the appointment of the receiver and a proposed stalking horse sale process with KingSett, which the Court also approved, with a bid floor of over $84 million.
Counsel is Osler, Hoskin & Harcourt LLP for KingSett, Bennett Jones LLP for the receiver, Chaitons LLP for Scotiabank, Davies Ward Phillips & Vineberg LLP for the respondents, and Dentons Canada LLP for the Salvation Army.
