Toronto’s massive The One mixed-use project has been placed in receivership as it grapples with more than $1.2 billion in debt.
An Ontario Superior Court judge has approved South Korean lender KEB Hana Bank’s application to appoint Alvarez & Marsal Canada as the receiver in the case. Sam Mizrahi, a local real estate developer, and Jenny Coco, who heads a road paving business, co-own The One on a 50-50 basis.
The 85-storey project includes condo, hotel and retail components.
Sam Mizrahi, a local real estate developer, and Jenny Coco, who heads a road paving business, co-own The One equally. But their relationship has become “increasingly acrimonious and dysfunctional” due to lawsuits and arbitration cases between them, KEB Hana said in the receivership application.
In a statement that it provided to Connect, Mirazhi’s development company said the court has provided a limited-scope receiver to overcome an “ongoing governance issue” that has caused “significant project delays.”
Mirazhi will continue to lead the development.
“As part of this arrangement, the receiver has requested that Sam Mizrahi and his company remain as the developer and general Contractor to oversee completion of The One,” said the development firm.
Mizrahi maintains his equity position in the project. The company called the receivership “a welcome” decision that will ensure The One’s “successful completion.”
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Monte Stewart serves as Content Director - Canada for Connect Commercial Real Estate.
Based in Vancouver, British Columbia, Monte provides daily news coverage of major Canadian commercial real estate markets, including Vancouver, Toronto, Montreal and Calgary. He has written about the real estate sector for various media outlets and Avison Young since the early 2000s.
In addition, he has covered sports, general news and business for several leading wire services and publications, including The Canadian Press, The Associated Press, The Calgary Herald, The Globe and Mail, Research Money, The Daily Oil Bulletin, Natural Gas World and The Toronto Star.
Monte is active in his community as a youth basketball coach and raises funds for such charitable causes as Movember.