A major real estate development project in Brampton, Ontario has hit a significant roadblock, as Maplequest Ventures Inc. faces receivership due to a default on nearly $90 million in loans.
The Richmond Hill-based company, which owns two residential development sites in Brampton, was placed under receivership on June 26.
The affected properties include a 50-acre site on Heritage Road, slated for a mix of townhouses and apartment units, and a 19-acre site on Torbram Road, planned for single-family homes and townhomes. The primary lenders, KingSett Mortgage Corporation and First Source Financial Management Inc., are owed approximately $48 million and $41 million, respectively.
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Court documents reveal that Maplequest failed to make interest payments for two months, with loans maturing in March and May 2024. The situation has also impacted Digram Developments Caledon Inc., a guarantor on Maplequest’s loan from KingSett. As a result, two of Digram’s development sites in Caledon have been included in the receivership order.
KSV Advisory has been appointed as the receiver and manager of the properties in both Brampton and Caledon. The lenders hope this action will help preserve the value of the properties for all stakeholders involved.
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