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Sale is on for Towns of Thornbury property in receivership

Receiver plans to have sale of the property completed by the end of March, development being sold 'as is, where is'
For sale signs have appeared on the Towns of Thornbury property.

The stalled Towns of Thornbury development property is now on the market.

Early in February, KSV Restructuring Inc., which had been earlier appointed as interim receiver for the property, petitioned the Ontario Superior Court of Justice to be appointed full receiver in order to begin the process to sell the property.

A few days later, Justice Peter J. Cavanagh approved the request and the sale process outlined by KSV in their report.

“This court orders that the sale process be and is hereby approved. The receiver is hereby authorized to carry out the sale process and to take such steps as it considers necessary or desirable in carrying out its obligations thereunder, including authorizing the receiver to enter into realtor listing agreements and modifying the sale process timelines as set out in the pre-filing report, all subject to prior approval of this court before completion of any sale transaction under the sale process,” the order from Justice Cavanagh states.

For sale signs recently appeared on the fence that surrounds the property in downtown Thornbury. For sale signs have also been posted on the buildings in the development.

KSV has retained Slavens and Associates Real Estate Inc. to conduct the sale process. Throughout February and early March, Slavens will be conducting marketing of the property and due diligence as it works towards a sale of the lands. A short list of bidders is expected to be in place by March 21 and the hope is a final sale agreement will be reached by the end of March.

The property is being sold “as is, where is,” which requires the purchaser to accept the property in its current state and they become responsible for all repairs or renovations that may be required.

Full details on the sale process can be found in KSV’s report to the court online here.

The prominent development adjacent to the Foodland store in Thornbury went into receivership late last year after the mortgage company, Foremost Mortgage Holding Company and Foremost Financial Corporation, said the owner – 2521311 Ontario Inc., which is owned by Nick Sampogna – defaulted on the mortgage. Foremost said it is owed $8.8 million on the property.

Subsequently, KSV was appointed interim receiver and took possession of the property and authorized some work at the site to protect the existing  buildings from the elements.

The original owner had until the end of January to satisfy the conditions of the loan.

A sale listing for the Towns of Thornbury property is now on the Slavens and Associates website here.

The listing includes this description of the property: “approval has been secured for 23 contemporary townhomes, currently in various stages of construction. Positioned on a strategically located 1.48-acre parcel, this property is available for acquisition, allowing developers the flexibility to either complete the existing plans or embark on a new project.”

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About the Author: Chris Fell, Local Journalism Initiative reporter

Chris Fell covers The Blue Mountains and Grey Highlands under the Local Journalism Initiative, which is funded by the Government of Canada
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