In a recent development, The One, an 85-storey luxury condo development project currently under construction at Yonge and Bloor streets, faces receivership as confirmed by court documents.
Alvarez & Marsal Canada Inc., a consulting firm, has been appointed as the receiver for all project assets.
The decision to place “The One” into receivership comes as a response to a series of economic challenges, including the impacts of the COVID-19 pandemic, supply chain disruptions, and unforeseen work stoppages. These factors have led to significant cost overruns and extended construction timelines, according to a statement by Alvarez & Marsal on its website.
The receiver will have access to $315 million to ensure the continuation of construction on the property, as outlined in court documents. Mizrahi Inc. will maintain its role as the general contractor, operating under the supervision of the receiver.
This development will be closely monitored as the luxury condo project navigates its financial and construction challenges.
In a statement, Sam Mizrahi responded to the decision by saying that it is “welcome” and that the move into receivership will allow for the successful completion of The One “under the continued leadership of Sam Mizrahi and Mizrahi Developments.”
“At the request of the project’s senior lender, the court has appointed a limited scope receiver to overcome an ongoing governance issue that has caused significant project delays,” the statement read. “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. Mr. Mizrahi maintains his equity position in the project.”