Morrison Financial wins receiver appointment over Mississauga Dundas Street redevelopment lands

The Ontario Superior Court of Justice (Commercial List) appointed Albert Gelman Inc. as receiver and manager over AG (1000 & 1024 Dundas St. E.) GP Inc., AG (1000 & 1024 Dundas St. E.) LP, and AG (1000 & 1024 Dundas St. E.) Inc. on December 17, 2025, on application by secured lender Morrison Financial Mortgage Corporation. The appointment covers the real properties municipally known as 1000 Dundas Street East and 1024 Dundas Street East in Mississauga, Ontario. Justice F.L. Myers found it just and convenient to appoint a neutral court officer to bring stability to a complex, tenant-heavy property after the parties’ forbearance period expired without a refinancing.

The debtors are the registered owners of adjacent Dundas Street East parcels intended for a high-density redevelopment comprising 543 apartment units across 3 towers, with ground-floor commercial space and underground parking. The lands have not been redeveloped and continue to operate with existing low-rise buildings and a large surface parking area occupied by approximately 41 commercial tenants, many involved in used automobile sales. While the borrowers advised they were moving toward site plan approval, the record reflects no substantiated approvals and no secured development or construction partner.

Morrison advanced a refinancing and soft-cost facility under a March 10, 2023 commitment, later amended, with a maximum total loan amount of $15 million inclusive of finance costs. The loan matured on May 1, 2025 and was not repaid. Following maturity, no renewal or extension was agreed, no payments were made on account of the outstanding balance, and the lender issued demands and statutory notices on June 5, 2025. As at June 5, 2025, the indebtedness stood at $14.9 million excluding subsequent accruals. The lender cited loss of confidence in the borrowers’ ability to refinance, complete the redevelopment, and properly manage rent collections across a large tenant base.

The parties entered into a forbearance agreement dated September 30, 2025 that included admissions of indebtedness, waivers of defences, and a consent to the appointment of a receiver upon breach or expiry. The forbearance period ran to December 5, 2025, subject to interim payments and information covenants. The borrowers did not conclude a take-out refinancing within the forbearance period. At the December 17 hearing, the court signed the appointment order, noting the need for a neutral officer to stabilize operations and protect stakeholder interests. The receiver intends to return to court early in the new year to seek approval of a sale process to identify a buyer for the real properties.

Counsel is Garfinkle Biderman for Morrison Financial Mortgage Corporation, Miller Thomson for the debtors and Gowling WLG for the receiver.