Financial woes plague developer Thind Properties

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Financial woes plague developer Thind Properties

Thind Properties (Thind), a prominent developer in Metro Vancouver, has been thrust into financial turmoil as its Eclipse and Lumina condominium projects in Burnaby were placed under creditor protection this week. The decision follows a lawsuit by Kingsett Mortgage Corporation, marking the latest in a series of insolvency challenges for the embattled developer.

Kingsett claims the Eclipse project, a 34-story condo tower boasting 335 units, remains 95% complete but has halted construction due to financial shortfalls. Presales for 224 units have been reported, but the unfinished state of the building has left buyers in limbo. Similarly, the three-tower Lumina project has faced setbacks, adding to Thind’s challenges.

Mounting debt and legal struggles

Kingsett Mortgage Corporation claims Thind owes $190 million and accrues nearly $54,000 in daily interest. In an affidavit, Daniel Pollack, Kingsett’s executive director of loan and portfolio management, stated the firm had “lost all faith in [Thind’s] ability to complete their current construction projects and deliver upon the presale agreements to the presale purchasers.”

Court documents also revealed a $12 million judgment by the Canada Revenue Agency (CRA) against the Eclipse and Lumina properties. Kingsett alleges that Thind failed to disclose the judgment, which would have influenced its lending decisions.

A pattern of insolvency

Thind Properties’ financial troubles first came to light in November 2024 when its flagship District Northwest project in Surrey was placed into receivership, a report from CBC News highlighted. Although 90% of the 1,023 units were pre-sold, construction has yet to begin, and the company defaulted on an $80 million mortgage.

Since then, Kingsett has sought court intervention for two other Thind projects: Burnaby’s completed Highline condo tower and Richmond’s stalled Minoru Square development. Collectively, Thind’s mortgage debt with Kingsett now approaches $500 million.

In court filings, Kingsett also accused Thind of misappropriating $7.5 million in GST funds related to the Highline project, which were allegedly diverted for internal use rather than remitted to the CRA.

Impact on buyers and contractors

While Thind Properties president Daljit Thind has assured pre-sale buyers of the District Northwest project that their deposits remain secure, uncertainty looms over other developments. The City of Burnaby has suspended building permits for the Eclipse, further delaying progress.

The financial troubles have sparked multiple lawsuits. Contractors, workers, and a real estate agent have filed claims for unpaid services, including nearly $1.7 million for steel and drywall installations and $600,000 for electrical work.

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