DevDudeToronto said:
And there it is. No more Mizrahi. I wonder if he'll come back from this or if we'll never see another Mizrahi project again. Should we rename this project The Icarus?
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I don't think project management is the same as the developer. Therefore, Mizrahi is still in the driver's seat as far as I am aware...so their wings have not come so close to the sun to melt yet. Although, I suspect their reign here will be much more one of humility and neuteredness. Or least it should be...
 
DevDudeToronto said:
And there it is. No more Mizrahi. I wonder if he'll come back from this or if we'll never see another Mizrahi project again. Should we rename this project The Icarus?
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You sure about that, DevDude?
 
LoMein said:
Highly recommend people actually read before commenting: https://www.alvarezandmarsal.com/sites/default/files/canada/Affidavit of Joo Sung Yoon, made October 17, 2023.pdf

The amount of misinformation and idiotic takes here is mind blowing.
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While I appreciate the link being posted; I don't think broad-brushing UT's membership with profound insults is at all reasonable, fair or constructive.

There's little question, some members could do more thorough research before posting; something I regularly encourage. But there's no need for this type of language in a post.
 
In reading through the documents fully. Most of the financial arrangement/loans/beneficial ownership are known to the UT community.

The first bit I don't believe I had seen discussed is that senior creditors have not authorized the increase in height to 91s as yet.

1698178718422.png

****

The dates (projected completion) and budget have been mentioned more than once are worth of a contextual post here:

1698178823076.png

1698178885079.png


On the quantity and distribution of debt:

1698178934199.png




The discussion on the interest rates and how they became so cumulative onerous begins on p.50

***

Further info on projected timeline and budget:

1698179313013.png

Important upcoming Milestones:

1698179609986.png
 
Collingwoodbuildinglover said:
If you get a chance, look up billionaires row in New York. Four buildings sitting three quarters empty. All projects were finished over budget to the tune of 1 billion in losses. This project though mismanaged, has not hit that point yet. People who have just built a house should not tell developers how they need to build a tower
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This is interesting - I would not have expected the billionaires row buildings in Manhattan to face losses in the $1b range, but I can't say I'm surprised. We all know half the units in those buildings are sitting empty, though someone does own them. The One could easily head in that direction. But another scenario could unfold in an attempt to turn profit or at least break even here -
  • cancel all the existing sales and return deposits (or perhaps just pull the remaining inventory off the market, since it's mostly units above the 50th storey that haven't sold) - this could also be a fun one for Tarion since there's a $200m+ charge registered on title as deposit insurance
  • re-demise all the units (or just re-demise units above the 50th storey to create an extra 6 - 8 units per floor, since there's only 4 units per floor beyond floor 49)
    • Below the 50th storey, it's 10 units per floor at roughly 80m2/unit. You can probably create another 2 units here - although that may impact your 2/3 bedroom counts, demising walls, etc
  • You can create an extra +/- 300 units for instance by just re-demising the units above the 49th storey
  • Sell the new units at $2,000+/sf... if possible in today's market
This is a long shot and it will piss off a lot of people, esp the ones who bought here. And these ppl could be pretty litigious. As well, I didn't do any cash flow analysis/proforma to determine whether this makes financial sense. But just throwing out what could happen or what I've seen happen in the GTA when builders cancel and revive projects
 
Before this, who was the project manager or was it being managed by mizarahi as a developer and project manager? In which case that is how you spell disaster for any project. As someone who was had to wear both those caps, it sucksOk.
UtakataNoAnnex said:
The troll always comes stating that everyone else has got it wrong, lol...
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I would just like to be clear in case I'm getting grouped into the category of troll as that was never. My intention was saying some of the thoughts that were coming to my head. Personally, I want to see this project completed as it's actually one of the nicest looking buildings coming to Toronto
 
Collingwoodbuildinglover said:
Before this, who was the project manager or was it being managed by mizarahi as a developer and project manager? In which case that is how you spell disaster for any project. As someone who was had to wear both those caps, it sucksOk.
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Mizrahi was acting as his own PM.

Collingwoodbuildinglover said:
I would just like to be clear in case I'm getting grouped into the category of troll as that was never. My intention was saying some of the thoughts that were coming to my head. Personally, I want to see this project completed as it's actually one of the nicest looking buildings coming to Toronto
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I feel confident in saying that was not aimed at you.
 
Regardless of the bankruptcy does this project not have surety insurance? It should finish anyways, Union Station / Bondfield style.
 
LoMein said:
No surety bonds in place. They wouldn't even help here as the issue isn't with the GC defaulting. The issue is the developer (Mizrahi/Coco).
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Is Mizrahi not the GC?

Also after reading the docs more closely I think Aviva is the surety.
 
Developers are required to take surety bonds to satisfy Tarion requirements to protect deposits, not the project construction.

There is nothing to say that after he fired the original CM, Mizrahi could not have setup a contracting company to complete the work, and get it bonded. It sounds like this isn't the case though.

What has happened is that the new owner (the receiver, essentially) has selected a new owner's representative (Knightsbridge) to oversee the developer/construction manager (Mizrahi). Don't forget this project has gone into receivership not bankruptcy, it is a bit different. Firstly it is not voluntary, so this was sprung on Mizrahi by his secured creditors. Secondly, in receivership, the debts are not wiped out at all.

The fact they are continuing construction and even injected money is a good sign that the receiver believes continuing construction is the best way to maximize paying back the secured debt. A sale is always possible, but who would buy a half sold building that requires hundreds of millions of dollars to complete construction?
 
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Collingwoodbuildinglover said:
Four buildings sitting three quarters empty. All projects were finished over budget to the tune of 1 billion in losses. This project though mismanaged, has not hit that point yet.
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What exactly do you mean by "not hit that point"? This project was first estimated to cost $1 billion. It is currently at $1.6 billion. I'd bet my firstborn it won't come in under $2 billion.
 
So the best suggestion I have to anyone who is looking at this like it is an anomaly is go on YouTube and watch any mega projects video the first thing they will always tell you is it ran about 50% over budget. Hell the four buildings that I have built ran over budget companies have bad habits of not factoring in winter heating and other fuel required as well as other add-ons that get put on
 
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