A court-appointed receiver plans to list Toronto’s massive debt-riddled the One condominium development project for $1.2 billion.

Alvarez & Marsal said in a Superior Court of Ontario (Commercial List) court filing that the 85-storey project’s senior secured creditors have required the receiver to set that asking price as a minimum bid threshold. The receiver said it could sell the entire project at this time or arrange for developers or others to complete the development and market the mixed-use tower’s residential units and commercial component.

There could be one transaction of a series of deals completed to achieve at least $1.2 billion in proceeds. The project is nearing the point at which decisions need to be made on existing condominium sales agreements and a hotel development deal that will affect part of the tower, the receiver added.

“Now is the appropriate time to market the project to solicit any and all potential forms of value maximizing transactions or investments that may be available in the market,” said Alvarez and Marsal in the report.

To help maximize the value, Alvarez & Marsal wants to reconfigure the building’s top floors, increasing the unit count to 503 from 415.

The receiver has selected JLL to market the project after selecting five finalists from among companies that submitted proposals. Alvarez & Marsales are preparing a solicitation and investment sales process (SISP) with the goal of securing a successful court-approved bid by October 14.

The recent court filing was the receiver’s second report. The latest plans come after Alvarez and Marsal appointed SKYGRiD Construction as the project’s general contractor and developer. Located at 1 Bloor Street, the 85-storey project is grappling with more than $1.2 billion in debt.

SKYGRiD replaced Sam Mizrahi, a local real estate developer who also co-owns the project.

Alvarez & Marsal plans to conduct the formal marketing and initial due diligence process in July and set a final bid deadline for September 24.

Image: Wikipedia

Get Ready for Canada Kick-off

Connect CRE will hold its inaugural Canada Kick-off Event in Toronto on June 11. This will be Connect’s first commercial real estate industry conference in Canada. Panelists will include Syl Apps, managing director and co-country head for Hines; Lindsay Brand, chief investment officer at Concert Properties; Mark Kenney, CEO of Canadian Apartment Properties REIT; and, Marie-France Benoit, Avison Young’s director of Canadian market intelligence. Come and gain insights from industry leaders on such matters as buyer sentiment amid a lower interest-rate environment, cross-border commercial real estate transaction trends, and investors’ outlook for 2024 and beyond. Register today.