cresford developments

One of Toronto's biggest condo developers is said to be having a cash crisis

A Toronto-based development giant behind multiple residential highrises in the downtown core is apparently not doing as well as people may think.

New information suggests that Cresford Developments — which is currently building a number of projects in the city, including condos at Bay and Yorkville as well as an 85-storey tower at Yonge and Gerrard — is experiencing what the company's former president has called "a cash crisis."

The claim is part of that employee's wrongful dismissal suit obtained by The Globe and Mail.

The suit states that based on the former president's knowledge, Cresford "does not currently have" the funding to complete its ongoing projects and fulfill all of the financial obligations it has to stakeholders, primarily due to unanticipated construction costs.

Between the four complexes that are mid-development, the company has pre-sold nearly 2,000 units with thousands yet to fill, according to the Globe. The suit claims Cresford has been internally shifting money between older and newer projects to cover bills.

The company has since filed a counterclaim, saying that the former president has grossly exaggerated the "size and urgency" of Cresford's financial issues — but it does admit that said financial issues exist.

Cresford also alleges that the ex-employee breached fiduciary duty while still employed at the firm, and is seeking millions in damages for her mismanagement.

Overall, it seems like a concerning amount of drama from a massive and supposedly venerable luxury condo developer — surely not a good sign for prospective buyers and investors.

Lead photo by

KPF


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