MCAP moves on Edmonton office tower over $44.6 million debt

Certain properties of Luxor Land Ltd. and Mesa West Capital Corp., including Edmonton’s WSP Place office tower, were placed into receivership on August 14, 2026, on application by MCAP Financial Corporation, acting for Computershare Trust Company of Canada as custodian on behalf of Real Estate Asset Liquidity Trust, owed approximately $44.6 million.

The borrowers are part of the Procura Group, a real estate development and management business controlled by George Schluessel. Their principal asset is WSP Place, a 12-storey office tower at 10909 Jasper Avenue with 191,435 square feet of leasable space and 173 parking stalls. The property was financed through a $38 million loan advanced in December 2018 and secured by a first-ranking mortgage and related security.

Financial problems emerged around 2022. After the loss of a large tenant, MCAP agreed to temporary payment relief that reduced the borrowers’ monthly cash contribution to $100,000, with the balance drawn from a lease reserve. The reserve was exhausted around September 2023, after which the borrowers stopped making required principal and interest payments. The loan matured on January 1, 2024 without repayment. MCAP also cited unpaid property taxes, utilities and a builders’ lien among the defaults.

The lender later raised concerns about approximately $1.1 million of insurance proceeds stemming from an October 2023 fire at WSP Place, alleging the money was diverted to other Procura Group properties rather than used for repairs or remitted to MCAP. MCAP also says proceeds from a later settlement with tenant WSP Canada Inc. were not turned over.

MCAP agreed to enter into a two-year forbearance agreement in June 2024. The agreement recorded debt of approximately $38.4 million, required a $1.2 million payment by June 12, 2025 and included a consent receivership order. MCAP said the payment was not made and that it issued four notices of default before the forbearance period expired on June 12, 2026.

The breakdown accelerated after the borrowers allowed an unsolicited May 2026 offer for WSP Place to expire despite MCAP urging them to accept it. The lender also alleged interference with a current tenant. By July 13, the debt had increased to approximately $44.6 million, including advances, interest, costs and fees.

AlixPartners is the receiver. Counsel includes Cassels for MCAP, DLA Piper for the receiver, and Duncan Craig for the debtors.

The debtors are also subject to separate receivership proceedings in respect of their Azure and Cascadia lands.