Thind Properties, a Burnaby-based developer, is facing receivership for two additional projects, Highline and Minoru Square, amid escalating financial challenges. This development comes shortly after its District Northwest project entered receivership, as first reported earlier this week.
Highline Project: Financial Struggles at Metrotown
The Highline tower, a 48-storey mixed-use building near Metrotown Station in Burnaby, was completed in late 2023 and has received occupancy permits. Initially designed with office space, Thind began converting parts of the building into hotel use.
In March 2024, Thind secured an inventory financing loan from KingSett Capital for $176.5 million at an interest rate of RBC Prime + 3.50% (minimum 10.7%). However, Thind defaulted on payments in September and October, resulting in KingSett issuing a Notice of Default. As of November 1, Thind owed $146 million on the project, with daily interest accruing at $42,902.
KingSett alleges many of the Highline’s units remain unsold, with 44 residential and three retail units available for sale. Realtor Gurmail Singh has also filed a lawsuit claiming Thind owes him $800,000 in consulting fees related to these units.
Minoru Square: Unfinished Plans in Richmond
The second project under receivership, Minoru Square, is a proposed mixed-use development in Richmond. The site was intended to include an office tower and three residential buildings with 429 homes.
Thind borrowed $72.65 million from KingSett in 2021 for this project, but it also defaulted on payments in September and October 2024. As of November 1, Thind owed $74.9 million, with daily interest accruing at $24,868. This debt is cross-collateralized with the Highline project, prompting KingSett to file a single receivership application for both.
Total Debt and Legal Complications
Thind owes KingSett a total of $220.9 million across Highline and Minoru Square, increasing to $306.6 million when including the District Northwest project. Additional legal issues include:
- Unpaid subcontractors: Inform Projects, a supplier for Highline, claims Thind owes $677,731 for cabinetry work and accuses the developer of misusing project funds. Inform has filed a lien and sought damages for breach of trust.
- Counterclaims: Thind has countered that Inform’s work was defective, alleging breaches of contract that resulted in financial losses.
- Evading service: Inform alleges that Thind’s leadership, including CEO Daljit Thind, has been avoiding legal service.
Future Implications
If the receivership application is approved, both Highline and Minoru Square are likely to undergo court-ordered sales. Unresolved lawsuits involving realtors, subcontractors, and lenders add further complexity, with all parties seeking to recover their claims. The mounting legal and financial challenges highlight the precarious position of Thind Properties as it navigates this crisis.