MCAP enforces on Surrey development after $13.7 million default, KSV appointed receiver over Maskeen Group

KSV Restructuring Inc. was appointed as receiver and manager over the assets of Maskeen 177 Projects Ltd. and affiliated entities on March 17, 2026 on application by MCAP Financial Corporation, following payment defaults under a construction financing facility tied to a multi-phase residential development in Surrey.

The receivership covers multiple Maskeen entities and three parcels of land in New Westminster, together with all related assets and proceeds. The underlying project involved the assembly and redevelopment of approximately 15 lots along Bentley Road in Surrey, intended for multi-family development following consolidation and subdivision. The borrower group included several affiliated entities controlled by common principals.

MCAP agreed in October 2022 to provide a $91.9 million non-revolving first mortgage construction facility to fund the redevelopment, structured with staged funding caps tied to project milestones. The initial advance was capped at $24 million to refinance existing obligations, fund municipal costs, and support early-stage sales and marketing, with a subsequent increase to $29.7 million intended to fund civil servicing works. Separate internal facility components included a tranche of approximately $13.9 million used in part to fund interest reserves following amendments to the commitment.

Despite multiple amendments and maturity extensions, including an extension to August 1, 2025, the borrowers were unable to stabilize the project or secure sufficient take-out financing. As at the enforcement stage, the borrowers were indebted to MCAP in the aggregate principal amount of approximately $13.75 million, plus accruing interest and costs.

Defaults arose from failure to make required payments when due under the loan, guarantees, and security, triggering enforcement rights under the financing documents. The project also faced competing claims and encumbrances, including builder’s liens and subordinate secured creditors such as excavation contractors, leasing companies, and financial institutions with registered interests against the lands and related assets.

KSV is the receiver. Counsel is DLA Piper for MCAP and McQuarrie Hunter for the companies.