Centra: a Surrey tower stopped at six storeys, and a buyer's financing condition

The structure at 13862 and 13868 101 Avenue in Surrey was intended to be a 24-storey condominium tower and a two-storey townhouse building, approximately 145,673 square feet and 167 residential lots, and the receiver now in charge of it understands that 152 of those units were subject to presale agreements. The tower was built to the sixth storey. Construction ceased in or around August 2024, and in December 2025 the general contractor, Metro-Can Construction (OT) Ltd., terminated its contract because the debtors had not paid amounts owing for its work, according to the First Report of the Receiver, July 24, 2026, paras. 4.2–4.3.

Alvarez & Marsal Canada Inc. has been receiver and manager since March 11, 2026, when Justice Loo of the Supreme Court of British Columbia, Vancouver Registry No. H-251466, appointed it without security under s. 243(1) of the Bankruptcy and Insolvency Act and s. 39 of the Law and Equity Act. The appointment covers all the assets, undertakings and property of three debtors: 1119356 B.C. Ltd., which holds the land as nominee and bare trustee for the beneficial owner, Centra Limited Partnership; the partnership; and its general partner, 1138624 B.C. Ltd., together with the partnership's and general partner's shares in the title-holder, per the Receivership Order, Mar. 11, 2026, para. 1 and the First Report of the Receiver, July 24, 2026, paras. 1.1, 4.1. The applicant was the second mortgagee, Domain Mortgage Corp., as mortgage administrator and bare trustee for Capstone Mortgage Pool and Capstone Mortgage Opportunities Fund LP.

Among the receiver's powers is one that names a buyer: to review and assess a purchase agreement dated February 11, 2026 among Chiniki Surrey Tower LP, Centra Limited Partnership and 1119356 B.C. Ltd. and, if the receiver considers it appropriate, to negotiate a new one with Chiniki for the court's approval, per the Receivership Order, Mar. 11, 2026, para. 2(l). By its first report, on July 24, the receiver had signed that new agreement, Chiniki had not yet waived its remaining conditions, including obtaining satisfactory financing, and the $500,000 the receiver was authorized to borrow was fully drawn, per the First Report of the Receiver, July 24, 2026, paras. 7.3–7.4, 8.1. On July 28 Justice Loo raised the limit to $1.5 million, per the Order re Receiver's Borrowings, July 28, 2026, para. 2.

A 14% mortgage behind the construction lender

The Capstone loan, $27,800,000 under a commitment letter dated March 22, 2022, was advanced as $23,550,000 on March 30, 2022 and $4,250,000 on July 27, 2022, and by March 2, 2026 the debtors owed $45,377,652.91 on it, Alexander Hayne, a director and principal of Domain, swore in the Affidavit #1 of Alexander Hayne, Feb. 24, 2026, paras. 1–4. Domain's petition sets the rate at 14% a year, "12% accrued and compounded annually, and 2% paid and compounded monthly," per the Petition to the Court, Dec. 19, 2025, Part 2, para. 12(a).

Desjardins Financial Security Life Assurance Company holds the first mortgage, with priority over Domain by agreement, and was the construction lender. Its credit agreement of September 8, 2021 provided a construction loan of up to $45,000,000 and a letter-of-credit facility of up to $4,000,000, as construction financing for a project to consist of a 24-storey building of 164 condominium units and three townhomes above two levels of underground parking. On February 6, 2026 it was owed $8,820,731.19, including $7,113,431.00 of construction loan principal, according to the Affidavit #1 of Geneviève Riverin, Feb. 26, 2026, paras. 11–12, 16–18, affirmed by a Desjardins account manager.

That affidavit gives the senior lender's account of how the project stalled. "In mid-2024, the Lender was advised by the Borrowers that the partially completed Project was to be sold to a third-party purchaser who intended to continue the development as a rental project," and no further advances were requested after that. By October 2024, it says, the registration of builders' liens against title made it "apparent that the Borrowers were experiencing financial difficulties." The borrowers kept up the scheduled interest payments while Desjardins awaited completion of the sale, until November 2025, per the Affidavit #1 of Geneviève Riverin, Feb. 26, 2026, paras. 19–20. The affidavit does not name the purchaser.

Third in rank is Trisura Guarantee Insurance Company, with an $18,000,000 mortgage registered on March 21, 2023, per the Affidavit #1 of Alexander Hayne, Feb. 24, 2026, para. 8 and the Petition to the Court, Dec. 19, 2025, Part 2, para. 20. The receiver describes it as held "in relation to a deposit protection insurance facility for the Development" and puts the insured deposits at approximately $7.0 million on the receivership date. It counts three secured creditors with claims of approximately $61.6 million: Desjardins at $8.9 million, the Capstone facility at $45.7 million, and Trisura. Among other known liabilities are $255,000 in unpaid property taxes, $65,000 of which must be paid before August 21, 2026 to avoid a tax sale by the City of Surrey, and $11.5 million owed to Metro-Can, for which a builders' lien was registered, per the First Report of the Receiver, July 24, 2026, paras. 4.4–4.5.

Domain's foreclosure petition, filed December 19, 2025 after demand letters dated December 12, asked among other things for an order fixing a date for redemption, judgment against the borrowers and their guarantors on their covenants, an order for sale and the appointment of a receiver. Among the defaults it listed were builders' liens totalling approximately $15,223,000 registered against title, per the Petition to the Court, Dec. 19, 2025, Part 1, para. 1 and Part 2, paras. 16, 18.

The contractor's holdback account

By Metro-Can's account, its CCDC 2 stipulated-price contract with 1138624 B.C. Ltd., made on or about December 23, 2020, was for general contracting services and/or materials for "an improvement known as the Centra condominium project" at a cost of $55,440,000. Metro-Can says it is owed $11,480,103.79 plus interest and claims builders' liens in that amount. It filed claims of lien for $9,598,108.58 on or about November 12, 2024 and for $1,881,995.21 on or about October 29, 2025, and on October 31, 2025 sued the general partner and the title-holder in Vancouver action S-258214, according to its Application Response, Feb. 27, 2026, Part 4, paras. 3–8.

Metro-Can says the two companies were required to maintain, and did maintain, a holdback account for its benefit, per the Application Response, Feb. 27, 2026, Part 4, para. 9. On January 13, 2026 Justice Hoffman ordered them to authorize Metro-Can as a co-signatory on the account within five days, "such that no payments can be made from the Holdback Account without the Petitioner's [Metro-Can's] knowledge and consent," and to disclose within five days the particulars of credits to and payments from it. On February 3, 2026 Justice Kirchner ordered that the companies were in breach of that order and that "the Respondent corporations have wilfully disobeyed an order against the Respondents, and are in Contempt of Court." They were given 14 days to comply; Metro-Can got leave to apply for sanctions, including fines on the corporations, if they did not, and special costs. Each order records Metro-Can's counsel "and no one else appearing, although duly served," per the orders exhibited to the Affidavit #1 of Channie Yoon, Feb. 27, 2026, Exs. "A" and "B".