Real Estate

Real estate receiverships on the rise in Canada as projects stall

From one of Canada’s tallest condo towers to bare tracts of land, residential development projects across the country are increasingly being pushed into receivership.

Elevated interest rates, construction costs and delays, and a slower real estate market are all contributing to the rising frequency of projects coming under financial stress, say experts.

“A year ago it was maybe a call a month, a call every two months, and now it’s a call a week,” said Mike Czestochowski, vice-chair with real estate company CBRE’s land services group.

Receiverships are a way for secured lenders to have the court appoint someone to take control of the property and either liquidate it or otherwise maximize the value of the assets.

While often thought of as a last resort, CBRE has seen an increase in receiverships as bigger construction projects with multiple mortgages and parties involved start to run into trouble.

“These projects that

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