Westmount: an auction and a revived sale sought for two Medicine Hat buildings

The industrial building at 1496 Brier Park Crescent NW in Medicine Hat has about 105,000 square feet of rentable space on 8.17 acres, and when Deloitte Restructuring Inc. first reported on it as receiver, in June 2023, three tenants occupied it, per the First Report of the Receiver (1975847 Alberta Ltd.), June 29, 2023, paras. 4, 26. By the receiver's report of November 2, 2026, one did. A court-approved sale process drew no offer by its bid deadline of October 13, 2023; the building was then listed at $7.8 million, and over approximately three years, the receiver says, the list price has been reduced ten times, to approximately $5.0 million, and "no viable offers have been made," per the Third Report of the Receiver (1975847 Alberta Ltd.), Nov. 2, 2026, paras. 4, 37, 41–42. On November 2, Deloitte applied to the Court of King's Bench of Alberta for approval to sell the building by online auction, per its Application (1975847 Alberta Ltd.), Nov. 2, 2026, para. 1.

In a second application the same day, Deloitte asks the court to revive the sale of the group's other Medicine Hat building, at 1516 Brier Park Crescent NW. A judge approved that sale in June; the purchase price was not funded by the extended closing date, and the $20,000 deposit was forfeited. The revived agreement is at a reduced price, which the receiver asks the court to keep sealed until a closing certificate is filed or December 31, 2026, whichever is earlier, per the Fourth Report of the Receiver (2218923 Alberta Ltd.), Nov. 2, 2026, paras. 13, 16(c), 27, 29. Both applications are returnable before Justice Mah at 3:00 p.m. on November 13, 2026, by Webex from the Calgary Courts Centre, per the Application (2218923 Alberta Ltd.), Nov. 2, 2026, p. 1 and the Application (1975847), Nov. 2, 2026, pp. 1–2.

Five properties, and a bankrupt parent

The proceeding is Bank of Montreal's, Action No. 2301-04941 in Calgary. On BMO's application Deloitte was appointed interim receiver of rents for five properties on April 27, 2023, and on May 15, 2023 receiver and manager of all the assets of 1975847 Alberta Ltd. and 2218923 Alberta Ltd., which the receiver's reports describe as wholly owned subsidiaries of Westmount Projects Inc., each holding one Medicine Hat building. BMO was owed approximately $7.1 million by 1975847 and approximately $1.5 million by 2218923 at the date of receivership, per the Third Report (1975847), Nov. 2, 2026, paras. 1, 3–5 and the Fourth Report (2218923), Nov. 2, 2026, paras. 3–5. The other three properties were Westmount's own residential buildings in Calgary, 18 units in all, and the court approved their sales on November 22, 2023, per the Fourth and Final Report of the Receiver (Westmount Projects Inc.), Apr. 15, 2024, paras. 3–4, 15.

By then the parent was bankrupt. On November 3, 2023, in 2023 ABKB 619, Justice Feasby granted a bankruptcy order against Westmount Projects on the application of a former director who had personally guaranteed its mortgages and loans, together with two corporations, and appointed Deloitte trustee. The reasons say Westmount and its subsidiaries were "party to approximately 20 foreclosure and receivership actions in this Court," and call it "a case that calls out for the intervention of a bankruptcy trustee." Westmount denied the alleged acts of bankruptcy and relied on set-off claims against the applicants. The reasons find that the shares of the two Medicine Hat subsidiaries were transferred to the Westmount Family Trust on March 29, 2023; that Westmount did not dispute, in its notice of dispute, the allegation that the transfer was "for no consideration to a related entity"; and that, asked in questioning what consideration had been paid, Westmount's principal "refused to answer the questions or provide any records." Justice Feasby drew an adverse inference, concluded that the transfers "were gratuitous," and found them "prima facie fraudulent preferences contrary to BIA s 42(b), (c), and (g)," per 2023 ABKB 619, Nov. 3, 2023, paras. 1, 3, 13–14, 36, 38–39, 52.

In the receivership, an order granted on the receiver's July 5, 2023 application and filed on August 30, 2023 directed 1975847 to say whether it had received, and still held, $68,755 in security deposits and prepaid rents, and to pay the money over or say where it had been transferred, and directed its director and a representative to cause it to comply. The November 2 report says the receiver has received no security deposits and no written correspondence on their whereabouts, and that further efforts to obtain compliance "would not be commercially reasonable in the present circumstances," though it "will continue to evaluate this matter," per the Third Report (1975847), Nov. 2, 2026, paras. 8, 24–25, 28.

Three years at 1496 Brier Park

Justice Yamauchi approved Avison Young's listing agreement and a sales process for both Medicine Hat buildings on August 4, 2023, per the Order – Medicine Hat Property, Aug. 4, 2023, paras. 2, 4. For the larger building, Avison Young reported, approximately 10 to 12 potentially interested parties were contacted, five signed confidentiality agreements and entered the data room, and four toured the property; no offer was received by the deadline. The receiver moved to a simplified commercial real estate listing at $7.8 million, relaunched on November 30, 2023, which on the Multiple Listing Service generated 40 automatic emails to potential investors, 58 client views and 1,485 agent views, per the Third Report (1975847), Nov. 2, 2026, paras. 36–38.

Industrial inventory in Medicine Hat is limited, the receiver says, but "demand is concentrated primarily on shop and warehouse properties of approximately 6,000 square feet or less, with larger properties generally requiring longer marketing periods," and this building requires "significant repairs and capital investment," its "substantial size and current condition" presenting further challenges. The receiver says it has met all operating expenses without drawing on its court-authorized borrowing facility. Its interim statement to October 28, 2026 shows $1,257,361 of receipts, $1,200,583 of them rental income, and $1,105,499 of disbursements, among them $447,717 for utilities, $202,039 for insurance and $175,305 for property tax; the estate balance was $151,861, per the Third Report (1975847), Nov. 2, 2026, paras. 41–42, 54–55 and App. "F".

The auction

Having determined, in consultation with BMO and Avison Young, that it was appropriate to consider another method of marketing, the receiver turned to LFC Group of Companies, which it describes as advertising, technology and real estate brokerage companies. As the Third Report sets out the terms of LFC's proposal, an extended campaign on LFC's FRE (Future of Real Estate®) Auctions platform would begin on November 30, 2026, with an initial bidding deadline of February 4, 2027. Bids would use LFC's Auction Plus® format, which permits bids to include contingencies. The building would be offered subject to a reserve price "to be established by the Receiver, in consultation with the Auctioneer and Avison Young," with no obligation to accept a bid below it. LFC would earn a transaction fee of 5% of the sale price, payable by the successful purchaser and only on closing, and any winning bid would need the court's approval, per the Third Report (1975847), Nov. 2, 2026, paras. 43–45. Neither the report nor the application states a reserve figure; the order sought would authorize the receiver to set one, per the Application (1975847), Nov. 2, 2026, para. 1(a)(vi) and Sched. "B", para. 7.