‘Oliver Landing’ not affected by bankruptcy
By ROY WOOD
The bankruptcy of an Alberta company will have nothing but “reputational” implications for a troubled residential development close to downtown Oliver, says a principal in both entities.
‘Oliver Landing’ managing partner Thomas Beyer acknowledged in an interview with ODN today that a numbered Alberta company, formerly known as Prestigious Properties Inc. – filed for bankruptcy in late July.
Beyer described himself as “director and president … think of me as a trustee” of the bankrupt company.
Beyer, pictured right, recently took over direction of the ‘Oliver Landing’ development at the corner of Sawmill Road and Co-op Avenue from former project manager David Perehudoff. In an interview last week, Beyer outlined a “re-launch” of the project, which has faced construction delays and higher than expected costs since it began last year.
The Alberta bankruptcy involves an ambitious real estate development near Cold Lake, Alberta, known as The Heights at English Bay. It began with the purchase of land in 2011 when the international price of oil was high and the promise of the Alberta oil sands seemed limitless.
Little work was ever done on the land and, after the 2014 plunge in oil prices, the project was pretty well abandoned. Costs related to a lawsuit and countersuit led the principals recently to fold their tent.
“We made a business decision to close the company through bankruptcy,” said Beyer, “to protect the interests of the shareholders.”
According to notice of bankruptcy documents filed in Edmonton on July 31, the company formerly known as Prestigious Properties Inc. has liabilities of $9,781,035 and assets of $800,000.
Beyer said there are no fiscal implications for ‘Oliver Landing’, which remains financially sound and its completely separate from the bankrupt company.
There are, he said, “reputational implications for myself and Mr. Perehudoff and Mr. (Scotty) Grubb … the actors are the same. … People will form opinions, rightly or wrongly … but I don’t see any implications.”
Grubb was a promoter of Prestigious Properties Inc. and is currently a director of the ‘Oliver Heights’ affordable housing project being spearheaded by Perehudoff.
Perehudoff said in an interview today that is no longer involved with ‘Oliver Landing’ except for a “financial interest” in a four-acre parcel adjacent to the current project, which may be developed in three or four years as Phase Five.
He agreed that the Alberta bankruptcy will have no effect on ‘Oliver Landing’. “I know they’re doing their best to get going. They have a plan.”
Perehudoff acknowledged that in the recent past, because of the construction delays, “draws were not received as fast a possible and we couldn’t pay our bills.”
In his interview with ODN last week, Beyer indicated cash flow is not an issue. “If you have pre-sales … and strong demand, the banks are happy to lend money. I was back (at the bank) today so it’s all good. It’s all lined up.”
‘Oliver Landing’ is an ambitious project that could eventually see as many as 130 homes on the 7.4-acre former horse pasture, commonly referred to as the Forbes property.
The 1,350-1,450-square-foot fourplex units are priced at around $360,000. Units in later phases, particularly along the Okanagan River, likely will be upwards of $500,000.
Roy Wood is a contract reporter for ODN – former managing editor of the Edmonton Journal