An Edmonton office tower has been placed in receivership after its owners amassed $44.6 million in debt and struggled with vacancies, missed payments and unpaid obligations.

The Court of King’s Bench of Alberta appointed AlixPartners Restructuring receiver of WSP Place on Aug. 14. The 12-storey building at 10909 Jasper Ave. is owned by Luxor Land and Mesa West Capital, companies linked to Procura Group.

MCAP Financial, acting as mortgage servicer, said the borrowers stopped making principal and interest payments after a lease reserve was depleted in September 2023. The $38-million loan matured in January 2024 without repayment, according to court filings.

The property’s troubles followed the departure of major tenants. Morningstar DBRS reported occupancy had dropped to 67% from 92.1% after Alberta Health Services and Alberta Investment Management left. Colliers listed 135,236 square feet as available in early 2026.

MCAP also alleged $1.1 million in insurance proceeds from a 2023 fire was directed to Procura properties instead of repairs or debt repayment. It said proceeds from a settlement with tenant WSP Canada were not remitted.

The receiver said the process is intended to sell the property and maximize value for all stakeholders. The allegations have not been tested in court.