Tesla said:
Right. The Covid delay caused this bright, shiny and sparkling clean project to lose $600 million. Right.
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No delays and material shortages as well as inflation are ran up the cost on this project as it has on every other mega project when you calculate the budgets for these projects, they are based on the current price of labor and materials without taking inflation into account. Given them that at 1 point time we were seeing 10% inflation. It is understandable that this project would incur large losses, especially given that it sat for 2 years with two massive luffng cranes sitting idle on a plus note, the Jetta tower in Saudi Arabia just restarted construction
 
SonyPayStation said:
Whoops.

storeys.com

Sam Mizrahi's 'The One' Placed Under Receivership

One of the tallest skyscrapers coming to Canada is facing significant financial trouble as Mizrahi Developments' The One has been placed under receivership.According to court filings, a total of $1.235B is outstanding on loans provided by KEB Hana Bank for the development of The One. Further...
storeys.com storeys.com
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Whoops what?

Okay, so out of the many members that came on here with their "trusted sources" about the financial trouble this project is in, which we all knew based on the fact where there's smoke there's fire, one finally came to fruition. And like we said, the building will continue to get built.

So we've come full circle. The building is still being built, and finances should probably discussed in the real estate section.
 
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UpwithOlives said:
Somebody will finish it in some form. And someone will make money doing it. Just not the original developer and investors...
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$1.6B in debt if we assume 5% rate (even though the mezz loans are probably 8-12%), that's running at a $219K per diem rate. Hard to imagine.
 
Our front page story has now been updated to include this statement from Mizrahi:

“At the request of the project’s senior lender, the court has appointed a limited scope receiver to overcome an ongoing governance issue that has caused significant project delays. As part of this arrangement, the receiver has requested that Sam Mizrahi and his company remain as the Developer and General Contractor to oversee completion of The One. Mr. Mizrahi maintains his equity position in the project.​
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This is a welcome decision that will allow for the successful completion of The One under the continued leadership of Sam Mizrahi and Mizrahi Developments.”​

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AdamS said:
$1.6B in debt if we assume 5% rate (even though the mezz loans are probably 8-12%), that's running at a $219K per diem rate. Hard to imagine.
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According to the affidavit,
The tranche A debt to the senior lender (>$300M) was 9% and had multipliers if certain dates were missed and as of the filing was at 21.5!!!. Far worse than I think any of us thought.
 
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travis3000 said:
Did you read the documents? Construction will resume as normal.
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In fact, the Globe & Mail article (posted here) stated that the receivership was requested by the lead lender as a condition for releasing the next tranche of loans. So paradoxically, construction would have stalled WITHOUT the receivership.
 
from the UT story:
  • Estimated budget is now over $2 billion.
  • 346 residential units have been sold totalling $675 million. 70 remain unsold, all above the 50th floor.

Breaking even means those 70 remaining suites have an average selling price of $18.9m. Someone better chop up that floorplate asap.
 
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They are still busy today despite receivership.
 
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