Chard Development has acquired the troubled Harlow major multi-family project in Vancouver’s West End through a court-ordered sale.

The Supreme Court of British Columbia recently approved the sale brokered by CBRE, court documents show. Justice Shelley Fitzpatrick issued the order based on a recommendation by receiver Deloitte Restructuring in a report provided to the court.

The purchase price was sealed by the court. Deloitte’s report showed that a creditor syndicate led by the Bank of Montreal was owed approximately $86.7 million late July with interest accruing at approximately $19,500 per day.

Also, Chard bid $93 million in 2023 as part of an auction that did not result in a sale.

The court-ordered sale resulted after BMO petitioned the project’s owner, a consortium known as Harlow Holdings, into receivership in January after refusing to extend credit any longer

Fitzpatrick authorized Deloitte’s request to allow Chard to acquire the project through a reverse vesting order (RVO.) Under an approved RVO, a debtor may set up a company, known as a residual company.

Unwanted liabilities of an insolvent company may be transferred to the residual company, releasing the debtor from their obligations, according to the Insolvency Institute of Canada. The debtor then exits Canadian Companies Arrangement Act proceedings and the residual company enters bankruptcy proceedings.

Deloitte’s recommendation states that an RVO was sought because a traditional asset sale, known as a vesting order, would require Chard to pay property transfer tax (PTT) to the B.C. government. However, an RVO does not require Chard to make a PTT payment to the province, increasing the value of the deal and providing more funds to creditors.

The development site is located at 1045 Haro Street and 830-846 Thurlow Street. Plans call for two towers standing 56 and 15 storeys with a total of 516 residential units. Retail space, a childcare centre and a new public plaza have also been proposed.

But it remains to be seen whether Vancouver-based Chard will proceed with the envisioned project.

After buying the property in 2018 for $178 million, Harlow did not submit a development plan to the city due to the project’s financial troubles, according to Deloitte.

Photo: Patkau Architects