Rocky ground
Kelowna recently cheered the sale of 7.5 acres the Okanagan Tree Fruit Co-operative owned on Clement Avenue for redevelopment by Compass Real Estate Development Ltd. as the Urban Square project.
But final details were still being ironed out when news came of the receivership of the city’s Sopa Square project, named for the city’s South Pandosy district. The latest edition of the B.C. Major Projects Inventory reported that the development’s commercial space would complete in October 2013, while a December 16 news release noted that more than $4 million was spent last fall to deliver on that promise ... by early 2014.
Meanwhile, the Leslie & Irene Dube Foundation Inc. of Saskatchewan and 1076586 Alberta Ltd. were preparing to ask the BC Supreme Court to appoint a receiver for the project, which was to represent a $70 million investment in Kelowna’s downtown. The petition succeeded on December 30.
Dogged by $19.6 million in debt, the project – undertaken by P218 Enterprises Ltd. and Wayne Holdings Ltd. – is now in the care of receivers in Ernst & Young Inc.’s Vancouver office.
Construction on the project began in 2011, with a view to developing 54,000 square feet of commercial space and 99 residential units.
Occupancy of the initial phase of residences was most recently slated for early 2015.
Student housing boost
Most observers will tell you Metro Vancouver’s rental market is a sure bet. Whatever the operating margins, supply lags behind demand and no amount of new construction seems sufficient.
Small wonder deals were done last year for projects prior to construction, and why Vancouver-based CIBT Education Group Inc. is spearheading what amounts to a student housing boom.
CIBT has announced plans for three developments in Richmond and Vancouver, totalling 457 units, and is pursuing deals for three more sites.
The largest of the three projects announced to date is proposed for the former casino site at No. 3 Road and Bridgeport Road. CIBT is proposing two towers, one with 300 residential units and the other hosting educational space. Richmond planning staff are reviewing it prior to submitting it to council.
The other two towers are planned for sites near the Capstan Way and Langara rapid transit stations.
CIBT president and CEO Toby Chu said CIBT has 2,000 students of its own and access to a pool of about 25,000 students through partnerships that it can serve with the planned housing.
“We’ve been dealing with homestays for foreign students for the past 20 years, and it’s becoming more and more problematic,” he said. “It’s become so expensive ... and the quality ... has been deteriorating because the supply is running dry. ... People buy a house then carve it up from four rooms to 10 rooms. It just looks terrible.”
Chu said the need for the properties will only increase as Ottawa pursues its ambitions of increasing the number of foreign students in Canada.
Vancouver developers New Continental Developments Inc. and Ming Liang Holdings Ltd. will develop the three initial projects on a build-to-suit basis, Chu said. CIBT subsidiary Global Education City Holdings Inc. will acquire the properties on completion.
Ballot buzz
Buzz during holiday parties last month touched on the effect of this year’s municipal elections on development activity. More than one source noted that developers were already seeing signs of a slowdown as councils prepare to avoid contentious proposals.
But queries to local municipalities last week indicated that applications show no signs of slowing down.
Burnaby exceeded historical norms, with 127 development permit applications in December, up from 85 a year earlier.
And in Vancouver, the city’s media relations office sent a note from Vicki Potter, development services director, indicating that development permit applications for the year totalled 4,200, 20% above the 10-year average.
“The City does not control the number of development permit applications,” Potter’s statement said. “That’s controlled by the applicants and is more of a reflection on the health of the economy than anything.” •
