A development project in Vaughan is under receivership due to a $29 million debt, marking another financial blow for the developer, Mizrahi Developments. Constantine Enterprises Inc., a partner in the project, pushed for receivership, citing a complete breakdown in their relationship with Mizrahi and doubts about Mizrahi’s ability to meet financial obligations.
This is the latest in a series of financial issues for Mizrahi, including the receivership and listing of a landmark project in Toronto called “The One”. The Ontario courts granted the receivership for the 180 Steeles Avenue West project, a multi-tower development planned to add over 2,000 residential units to Vaughan, currently stalled pending rezoning.
Court proceedings highlighted that the debtors owe over $28.9 million. Constantine’s reported that demands for payment were unmet, severely impairing the project’s progress. Additional debts include a $20 million second mortgage from Trez Capital and a $78 million first mortgage from CWB Financial Group.
Despite Mizrahi’s attempts to refute the claims and argue against receivership, Constantine insisted that a receiver is necessary to salvage the 180 Steeles project. The courts have appointed KSV Advisory as the receiver to manage the property and determine next steps.
