Lender petitions court to appoint receiver for Vancouver office project

This article by Vancouver Is Awesome covers a major real estate dispute where Shape Capital Corp. has petitioned B.C. Supreme Court to appoint a receiver for a defaulted medical office project near the new St. Paul's Hospital.

Vancouver lender Shape Capital provided $65 million in credit facilities to Keltic Canada Development for a 10-storey medical office building, but alleges the developer defaulted on mortgages totaling over $60 million. The situation escalated when Shape discovered unauthorized withdrawals from contractor holdback accounts, leading to construction delays and additional protective payments to keep the project moving forward.

• Shape Capital claims Keltic misappropriated $3.2 million from contractor holdback accounts and failed to meet mortgage commitments
• The medical office project is reportedly 85% complete with 20% of units already contracted near the future St. Paul's Hospital site
• Keltic CEO Rachel Lei says the company wants to avoid receivership through mutual agreements and continue cooperating to complete the development
• Shape is seeking appointment of FTI Consulting as receiver along with foreclosure orders if the situation isn't resolved within one week