Mizrahi Development Group (The One) Inc., Mizrahi Commercial (The One) LP, and Mizrahi Commercial (The One) GP Inc., Receivership

Mizrahi Development Group (The One) Inc., Mizrahi Commercial (The One) LP, and Mizrahi Commercial (The One) GP Inc., the companies behind The One - a high-profile proposed luxury skyscraper at the intersection of Yonge and Bloor in Toronto - were placed into receivership on October 18, on application by KEB Hana Bank, trustee of IGIS Global Private Placement Real Estate Fund No. 301 and Global Private Placement Real Estate Fund No. 434, owed approximately $1.2 billion. The project - a proposed 85-storey mixed-use retail, hotel and residential skyscraper with 416 residential units - broke ground in 2017 and was supposed to have been completed by 2022 at the latest. However, it has faced numerous challenges, including delays, cost overruns and issues between the principal investors, developer Sam Mizrahi and Jenny Coco, all of which have jeopardized the completion of the project. It is estimated that the project is two years behind schedule and will need hundreds of millions of dollars more to complete. KEB Hana Bank as trustee of IGIS Global Private Placement Real Estate Fund No. 530 has agreed to provide a maximum of $315 million for the development of the project and cost of the receiver throughout the receivership process. A&M was appointed receiver. Counsel is Osler for KEB Hana Bank; Goodmans for the receiver; BLG, Henein Hutchinson and McCarter Grespan for Mizrahi Inc., Sam M Inc., and Sam Mizrahi; Fogler Rubinoff and Torys for Coco International Inc. and 12823543 Canada Ltd.

By: Dina Milivojevic