The Globe and Mail reports in its Wednesday edition that investors who helped finance several major real estate projects for Fortress Real Developments have learned that they will recover little of the money they invested in syndicated mortgage loans.
The Globe's Janet McFarland writes that the projects include the Collier Centre retail development in Barrie, Ont., the Union Waterfront site in St. Catharines, Ont., and the Glens of Halton Hills site north of Toronto.
Lenders and receivers have begun to put the sites up for sale and are reporting they cannot raise enough money to repay syndicated mortgage lenders, who typically have the lowest-priority claims.
The Collier Centre was seized last year by senior lender Morrison Financial Services Ltd., which is working on a plan to redevelop the retail and office property. Morrison listed the site for sale in late January and has begun meeting with builders to consider options to finish the space.
Morrison president David Morrison said he does not know if his firm will recover the full $29.6-million it is owed on a first-ranking mortgage on the site. However, he doubts that there will be anything for the syndicated mortgage investors who provided $53-million in loans.
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