The King Square Shopping Centre in Markham, Ontario, once celebrated as one of North America’s largest Asian malls, faces receivership due to mounting debt. The mall, sprawling over 340,000 square feet, sits alongside undeveloped land earmarked for a hotel and residential project. Firm Capital and MarshallZehr, co-lenders, initiated receivership proceedings after defaults on an $82.2M loan. Despite recovering the initial $50M through unit sales, the debtors still owe approximately $52M plus interest to various lenders. Various mortgages complicate matters, with a sales process underway for vacant units and parking spaces within the mall.
Homelife Landmark Realty and AimHome Realty will handle sales of the shopping centre units. The development land will be sold in its entirety, originally intended for townhouses, a residential tower, and a hotel. Ernst & Young Real Estate Services will manage the land sale. The timeline for these sales extends into 2024, with the hope of resolving the mall’s financial turmoil as soon as possible.
