20:55:44 EDT Mon 13 Jul 2020
Enter Symbol
or Name

Login ID:

Globe says OSC target Fortress wants big payouts

2019-05-16 08:41 ET - In the News

The Globe and Mail reports in its Thursday edition that Fortress Real Developments is seeking large fee payments for work it has done negotiating new financing for some of its troubled real estate developments, even as syndicated mortgage investors are facing significant losses on some of the projects. The Globe's Janet McFarland writes that FAAN Mortgage Administrators, which was appointed last year to take control of Fortress's $560-million in outstanding syndicated mortgage loans, filed a report in court this week saying it has received many requests from Fortress to approve deals that include fee payments. FAAN said it "faces a dilemma" in reviewing the deals because of the size of the proposed fee payments for Fortress and because the deals are often presented as the "only option" available for investors. The trustee said it cannot verify the available options because it is not involved in the negotiations. "Notably, the trustee does not have control over any sale or refinancing process conducted by the borrowers on the real estate development projects," FAAN said. Fortress arranged $920-million in loans from 14,000 investors between 2009 and 2017 to finance real estate projects, including many condo projects.

© 2020 Canjex Publishing Ltd. All rights reserved.