Richmond’s Duck Island Development Faces Foreclosure

Aerial perspective of Duck Island, showcasing the potential for redevelopment along the scenic Fraser River.

News Summary

Richmond’s Duck Island, a prime 18-acre redevelopment site, is facing foreclosure proceedings initiated by lenders. The Supreme Court of British Columbia has ordered its sale, raising concerns among local stakeholders. Although the popular Richmond Night Market continues to operate, the future of the island’s ambitious redevelopment plans remains uncertain as court decisions heavily influence the situation. The involved parties must navigate a complex financial landscape, including a substantial loan default and missed payments.

Richmond’s Duck Island Development in Hot Water

Richmond’s Duck Island, a site with big plans for its future, is now facing some serious troubles as foreclosure proceedings have been initiated and the Supreme Court of British Columbia has ordered its sale. This news is making waves in the community, especially for those who have been keeping an eye on the redevelopment efforts.

What’s on the Line?

The main player in this situation is an 18-acre parcel known as Duck Island, situated right along the beautiful Fraser River. This prime location is bordered by Bridgeport Station on the Canada Line SkyTrain to the north and the Sea Island Bridge to the south. Not only Duck Island is affected; several nearby parcels, including 8351 River Road and multiple properties on West Road, are also part of this foreclosure drama.

But What About the Richmond Night Market?

For those wondering, the popular Richmond Night Market, which has made the site its home, is not in the crosshairs of the foreclosure situation. The market continues to operate as usual while the properties get sorted out in the courts.

Who’s Who in This Story?

Sanhurgon Investment Ltd. is the owner of the Duck Island and River Road parcels, while 0916544 BC Ltd. owns the West Road properties. Yet, it’s clear that all these parcels are under the watchful eye of Jingon International Development Group, which originally dreamed of transforming the area into a bustling commercial district.

The Road to Foreclosure

The troubles began to unfold on March 11, when Lanyard Investments Inc. and Fisgard Capital Corporation set the wheels in motion for the foreclosure. This was rooted in a mortgage agreement dating back to April 2022, which had been amended a couple of times. The developers took out a hefty non-revolving loan for a staggering $85 million to kick off their ambitious plans.

This mortgage was positioned as the first-ranking charge on the Richmond properties and came with additional sixth-ranking charges on three Surrey parcels, collectively valued at over $64 million. The scenarios behind the Surrey properties are equally tangled, involving several parties like Ming Yan Liu and Mao Huan Chen.

Missed Payments and Complications

Things spiraled further when a separate foreclosure action was filed on November 12 by Amber Mortgage Investment Corporation against the same group of guarantors, claiming over $6 million. The primary issue seems to be a mix of missed conditions, including an overdue principal payment that was due on August 13, 2023. Not to forget the loan’s maturity date that rolled around on July 1, 2023, sporting an interest rate of a jaw-dropping 15.85% per annum.

By mid-February, lenders disclosed they were collecting an overwhelming amount, claiming over $88 million plus interest, which ballooned to approximately $90.95 million by May 13. The developers had a last chance on November 13 to redeem themselves and halt the foreclosure process, but that date has since come and gone.

The Auction Block Awaits

Now, with no asking price in sight, the Richmond properties are listed by Colliers for sale, but the catch is that they will require Supreme Court approval before any deal can be done. The original loan agreement had specific zoning requirements that classified these as light industrial properties, needing an appraised value of about $188.77 million.

Adding to the complexity, Jingon International submitted a rezoning application without the lenders’ consent, which led to quite a few legal headaches since the lenders were unaware until relatively recently.

Looking Ahead

The future of Duck Island’s redevelopment remains uncertain as both the property sale and the ambitious plans depend heavily on the ongoing court decisions regarding the foreclosure proceedings. For the residents of Richmond and stakeholders involved, this situation is indeed one to watch!