MNP appointed receiver over Surrey West Village development lands

West Village General Partnership et al., real estate development companies holding eight contiguous parcels of land in North Surrey, BC tied to a proposed 36-storey condominium development, were placed into receivership on May 5, 2026, on application by The Bank of Nova Scotia, owed approximately $29.3 million.

BNS made credit facilities of $28.85 million available to fund acquisition and pre-construction costs for the project. BNS has alleged multiple defaults, including failure to make interest payments since at least June 2025, failure to pay property taxes due in July 2025, enforcement proceedings commenced against certain entities, failure to provide required reporting, and failure to repay the debt on demand or at maturity.

BNS issued a default and reservation of rights letter on August 20, 2025, confirming defaults, reserving rights and offering forbearance terms, including a possible maturity extension. It had also sought exit terms by letter dated June 16, 2025, which the debtors did not acknowledge. On November 14, 2025, BNS issued demands and section 244 notices to each debtor and the personal guarantors.

As of December 4, 2025, the amount owing to BNS was approximately $29.319 million, including accrued and unpaid interest to that date, excluding costs, with interest and costs continuing to accrue.

The receivership application was driven by BNS’s view that a court-supervised sale or realization process would produce more value than any option then available to the debtors. BNS also cited the scale and complexity of the project, the need for a fair and orderly process, failed assurances that repayment or refinancing was imminent, and loss of confidence in management’s ability to obtain refinancing or complete an out-of-court sale.

MNP is the receiver. Counsel includes Fasken for BNS, Osler for the receiver, Jenkins Marzban Logan for Johnson Chan, Cassels for Anson Chan, Nathanson Schachter & Thompson and Regehr Investments.