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Which projects are most likely to get cancelled?
- Thread starter Adam
- Start date
daveto
Active Member
The Shangri-La site on University has been empty the last couple of times I walked past it. It had been busy with dozens of works before.
bar1967
Active Member
Not sure where to post this so please feel free to move it mods.
Question. Why doesn't the Fed or Provincial government provide financing for some of these struggling developments? If I understand it correctly, a lot of developers are having difficulty a) getting project financing all or b) getting decent terms (interest rates) on their financing. With all the jobs at stake here would it not make sense?
Question. Why doesn't the Fed or Provincial government provide financing for some of these struggling developments? If I understand it correctly, a lot of developers are having difficulty a) getting project financing all or b) getting decent terms (interest rates) on their financing. With all the jobs at stake here would it not make sense?
cabbagetowner
Active Member
they do it (indirectly) by dropping rates.
cdr108
Senior Member
Well on January 20, 2009 the Bank of Canada lowered overnight rate target by 1/2 percentage point to 1 per cent.
Also, the Federal gov't purchased billions of mortgages from Canadian Banks.
What more do you want them to do ... finance the projects completely and continue the over-inflated RE bubble?
Personally, I'm against any form of bailout, whether it be for the auto industry or construction, etc.
Also, the Federal gov't purchased billions of mortgages from Canadian Banks.
What more do you want them to do ... finance the projects completely and continue the over-inflated RE bubble?
Personally, I'm against any form of bailout, whether it be for the auto industry or construction, etc.
bar1967
Active Member
What I heard was the typrical sources of financing (banks) aren't lending so some developers have to go and find other sources. In some cases they have to pay very high interest rates 9 plus percent. Due to the high financing cost this may make the development not economically feasible.
Last week there was a guy on the ROB blabbing about how he is making loads of money charging 19% interest to developers.
Last week there was a guy on the ROB blabbing about how he is making loads of money charging 19% interest to developers.
cabbagetowner
Active Member
now's a good time to have cash!
Adam
New Member
daveto
Active Member
Home Depot has paid $11.5m to back out of the Queen/Portland development.
The developers say they are still proceeding and will replace them with a different retailer.
http://www.thestar.com/article/575399
The developers say they are still proceeding and will replace them with a different retailer.
http://www.thestar.com/article/575399
T
terrafirma
Guest
Well put.
Can someone please point me to the firm that provided this kind of financing? I have a very interesting opportunity that involves acquiring a large amount of discounted/distressed debt secured against a condo project and I am looking for a financial partner.
Feel free to PM for details if you are interested.
Thank you
Observer Walt
Senior Member
A number of the larger mortgage brokers would probably be happy to listen to your proposal.
Roy G Biv
Senior Member
The Wentworth is cancelled.
MrCondo
New Member
Roy, where are you getting your information from?
Adam
New Member
tried to call but the phone just rang and rang and rang....
MrCondo
New Member
They are probably 'by appointment only'. I wouldn't jump to conclusions, just because someone does not answer the phone there.