Collingwoodbuildinglover said:
So the best suggestion I have to anyone who is looking at this like it is an anomaly is go on YouTube and watch any mega projects video the first thing they will always tell you is it ran about 50% over budget. Hell the four buildings that I have built ran over budget companies have bad habits of not factoring in winter heating and other fuel required as well as other add-ons that get put on
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This is construction, there is very little mercy. Companies that continue to go over budget end up going out of business.

But it's still a bit of a cowboy business, so when the work is plentiful, there is always another dreamer ready to risk their capital.
 
jibsta said:
This would not be enough.

The upper floors are selling nearly 3k psf or even higher going to smaller units would not help


They have 550k res sqft.

They need to sell a 4k psf to break even.
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If you're assuming final cost is $2.2B (which sounds about right), then you're forgetting that there's commercial/retail space as well, including a hotel. Although at this point I'm not sure how valuable that will all be......
 
To me, it seems they are working faster than normal. Lots and lots of activity going on today:

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I have often wondered if it is possible that the project manager was not scaling up on labor to meet timelines as being both the project manager and GC. There would be no fines linked between the timeline and work to be completed with the exception of the lenders having stipulations
 
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Northern Light said:
I'm not sure why you're linking 'topping it off' to shedding debt or breaching existing sales contracts.

These are not inherently linked.

The Creditor process will open up the debt to restructuring; lenders will almost certainly take a haircut.

Existing contracts could be voided, but returning deposits on 675M is no small matter.

Given all the un-sold inventory here. I'm not sure that makes sense; but it would depend on how much make-up space there is if units were re-sold; in this market though, re-selling might not pay off.

The market will be different by the time this one reaches the 91st floor.

But we shall see.
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I’m referring to mitigating losses. Top it off as soon as possible. Stop throwing good money after bad. A bankruptcy would likely wipe the contracts and the buyers would get their deposits back. Presumably they’re sitting in an insured lawyer’s trust account safe and sound or secured by a bond from a reputable insurance company though it wouldn’t surprise me if the deposit money somehow vanished too.
 
wopchop said:
Developers are required to take surety bonds to satisfy Tarion requirements to protect deposits, not the project construction.

There is nothing to say that after he fired the original CM, Mizrahi could not have setup a contracting company to complete the work, and get it bonded. It sounds like this isn't the case though.

What has happened is that the new owner (the receiver, essentially) has selected a new owner's representative (Knightsbridge) to oversee the developer/construction manager (Mizrahi). Don't forget this project has gone into receivership not bankruptcy, it is a bit different. Firstly it is not voluntary, so this was sprung on Mizrahi by his secured creditors. Secondly, in receivership, the debts are not wiped out at all.

The fact they are continuing construction and even injected money is a good sign that the receiver believes continuing construction is the best way to maximize paying back the secured debt. A sale is always possible, but who would buy a half sold building that requires hundreds of millions of dollars to complete construction?
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Lots of people- at 25-50 cents on the dollar.
 
Tesla said:
I’m referring to mitigating losses. Top it off as soon as possible. Stop throwing good money after bad. A bankruptcy would likely wipe the contracts and the buyers would get their deposits back. Presumably they’re sitting in an insured lawyer’s trust account safe and sound or secured by a bond from a reputable insurance company though it wouldn’t surprise me if the deposit money somehow vanished too.
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The thing that gets missed is that you think these projects are built for housing or luxury. The developers build them as a look what I can do there will be people that will get involved just for the sake of saying that they were involved in building a 91 story building
 
Next milestone everyone will be watching for is the corners being formed and completed on the second mechanical level

Edit. Do they have to manually lift the form? Ledge from the mechanical level to the other floors once they have three levels above formed. Just asking as that is what it appears
 
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