Major Toronto developer could go bust with over $200 million in debt

A Toronto developer behind tons of large-scale projects in the city is currently in the midst of a receivership mess, with creditors claiming the firm owes them more than a whopping $200 million that they don't believe they will get back without third-party intervention.

Lenders filed an application this week regarding a handful of complexes due from Vandyk Properties, including Grand Central Mimico, the sprawling transit-oriented community planned near Mimico GO Station.

With two million square feet of mixed-use space across 55 acres of land, the property was slated to completely transform Mimico Triangle with multiple condo buildings, a 1.25 km-long greenway, retail and office space, restaurants and more.

But, those funding it have "lost all confidence" in the developer to finish the build — as well as four others, totalling more than 1,700 homes — "in a timely manner or at all," according to court documents the Globe reported on today.

Behind the receivership request are KingSett Mortgage Corporation and Dorr Capital Corporation, who have been unable to secure re-payments from Vandyk in recent months, despite hundreds of units from the projects in question already being sold successfully.

Earlier this fall, contractors spoke out about still not being paid a year after completing work on Vandyk projects, many of which are now extremely delayed.

And they're not the only ones, as buyers, real estate agents and various construction companies likewise wait on payments from the firm.