Timbercreek Financials has made significant progress on resolving two loans originally made to financially troubled Groupe Sélection.

Montreal-based Groupe Sélection filed for restructuring under the Canadian Companies’ Creditors Arrangement Act in December 2022.

“We appreciate the significant work done by our team and partners to resolve these two loans and recover the company’s capital,” said Blair Tamblyn, CEO of Timbercreek. “We continue working to ensure the best outcomes for our shareholders from the remaining staged loans in the portfolio and look forward to redeploying this capital into new loans in our core asset types.”

The upcoming sale of Rosemont Les Quartiers, a retirement residence in Montreal, for $136 million will enable Timbercreek to recoup the full principal and interest on one of the loans, said the non-bank commercial real estate lender.

In late January, Chartwell Retirement Residences announced a definitive agreement to acquire the 632-unit Rosemont Les Quartiers. Timbercreek’s 50% ownership stake in the property was valued at approximately $62.0 million at year-end 2024, said the company.

The deal calls for Chartwell to pay $130 million when the deal closes and the remaining $6-million balance in three years. Chartwell expects to complete the transaction in the first quarter of 2025.

Toronto-based Timbercreek and its syndicated partners had acquired the property in August 2023, and the sale will enable the company to recover its full principal and interest.

The company said it has also made progress on a second loan tied to an unspecified multi-family residential building that was about 60% complete at the time of Groupe Sélection’s CCAA filing. Construction is now more than 90% complete, and Timbercreek expects to receive full repayment of the approximately $18 million loan through near-term refinancing.

Pictured: The Rosemont Les Quartiers retirement home in Montreal.

Photo: Realtor.ca