Collingwoodbuildinglover said:
I love how everybody is going after the developer and not talking about the fact that COVID put most projects on hold for at least a year. Some things are out of developers control. Give them grief when they deserve it, but in this case delays were inevitable
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All due respect, Covid was certainly a factor, but there were millions in government handouts to offset these delays. Furthermore, we have just experienced the strongest real estate price appreciation in history over the past few years, so even unsold units had significantly increased in value. Lastly, the developer was successful in its quest for more floors, which would improve the Proforma of this project.
This grief is deserved and the failure is due to poor management, hubris and inexperience.
 
LoMein said:
Hilarious that people ignored the warnings for years. We’ve been saying this would happen forever. It was obvious to anybody with a pulse.

I get that you guys like tall buildings but come on…
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(Most) posters here were not unaware of the financial challenges associated with this project.

What was said, broadly of previous posts about that was that they were getting repetitive and being posted for their own sake when they were not 'news'; and that the financial side of the project, arguably belongs more in the real estate thread.

That said, as noted by others, construction continues in receivership for the foreseeable future.

Collingwoodbuildinglover said:
I love how everybody is going after the developer and not talking about the fact that COVID put most projects on hold for at least a year. Some things are out of developers control. Give them grief when they deserve it, but in this case delays were inevitable
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I don't think generalizations are overly helpful here. This project had very challenging financing from quite early on. That is on those who arranged it and accepted it. Yes Covid played some role at the fringes of things, but there was much going on here that was not related to Covid.
 
Collingwoodbuildinglover said:
I love how everybody is going after the developer and not talking about the fact that COVID put most projects on hold for at least a year. Some things are out of developers control. Give them grief when they deserve it, but in this case delays were inevitable
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Right. The Covid delay caused this bright, shiny and sparkling clean project to lose $600 million. Right.
 
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.​
​
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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