Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeNewsCommercial Real EstateVancouver rental tower goes into receivership after pension fund calls in $109 million debtMajor real estate developer in 'financially precarious position,' former employee claims in court filingsLast updated 5 days ago You can save this article by registering for free here. Or sign-in if you have an account.A 35-storey rental tower at 5083 Joyce St., right, next to the SkyTrain station in Vancouver, is in receivership. Photo by NICK PROCAYLO /10111556AWestbank, one of Vancouver’s largest and most prominent real estate development firms, is in “a financially precarious position” and has laid off nearly half of its workforce, according to one of its former senior employees.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe allegation about layoffs was made in a sworn statement recently filed in B.C. Supreme Court as part of a continuing breach-of-contract claim by a former manager at Westbank.Asked about alleged staff reductions Friday, the company wouldn’t confirm anything.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try again“We cannot comment on matters before the courts, but we would note that none of these claims have been proven,” said Westbank spokesperson Ariele Peterson.Westbank was behind several of Vancouver’s biggest and flashiest buildings over the last three decades before expanding to other markets, including Toronto, the U.S. and Japan. However, in recent years, the developer has been selling off assets and facing lawsuits over allegations of unpaid bills.Just this week, news broke that a nearly completed Westbank rental tower in east Vancouver has been placed in receivership, after a court application by an Ontario pension fund seeking to recoup $109 million in debt. A 35-storey rental tower at 5083 Joyce St., right, next to the SkyTrain station in Vancouver, is in receivership. Photo by NICK PROCAYLO /10111556AAs Postmedia News reported in February, the breach-of-contract claim was made by former Westbank employee Rhiannon Mabberley. She alleges the company owes her $1.2 million based on an employment agreement, but Westbank has responded in court claiming that payment was dependent on profits that never materialized on the projects she worked on.None of her claims have been proven in court.In recent weeks, lawyers for both parties have filed a series of documents in court as Westbank seeks to set aside pretrial garnishing orders, which allow a creditor to get a debtor’s money from a third party, like a bank.Mabberley obtained pretrial garnishing orders for Westbank’s corporate bank accounts seeking to have $1.2 million placed in trust with the court before an October trial.But in an affidavit filed April 29, Mabberley wrote that the $1.2 million order only yielded $32,025.37, which “suggests to me that Westbank has changed its operating accounts to protect its assets from creditors such as myself.”“I verily believe that Westbank is in a financially precarious position. For example, I am aware that Westbank has laid off nearly half of its workforce,” Mabberley wrote. In addition, she wrote, the company has “liquidated multiple real estate holdings to cover accumulated debts. I am also frequently contacted by suppliers with outstanding invoices to Westbank, inquiring about payment.”Mabberley’s affidavit says her information is based on her 21 years of experience as a real estate development executive, her continued work as a consultant in the industry, and “information gleaned from my day-to-day work and interactions in that industry.”Mabberley’s lawyer, Thomas Falcone, declined to comment.Meanwhile, court-appointed receiver KSV Advisory issued a notice this week saying there is $286 million owed to 20 secured creditors and another $6 million to dozens of unsecured creditors related to Westbank’s 35-storey rental tower at 5083 Joyce St.Westbank and the lender, the Ontario government employee pension fund OPTrust, said in a joint statement Friday that the two parties entered the receivership process on a co-operative basis.OPTrust is the second-ranking lender on the project behind National Bank, which is owed about $165 million.“The appointment of a court-supervised receiver has been sought to ensure the project can reach final completion in an orderly and timely fashion. This was undertaken co-operatively with Westbank and is consistent with shared objectives to facilitate the completion of the project,” said the statement from OPTrust and Westbank.The Joyce receivership was first reported Thursday by real estate news website The Realist. The project is near completion, and leases have been executed with both commercial and residential tenants. Some units in the building are already occupied.“Receivership establishes a court-supervised framework that provides independent oversight and keeps the project on track while remaining work is completed,” the joint statement said. “Building operations and leasing continue, and residents are not impacted.”OPTrust applied for the receivership in March and it was granted by the court on April 27.The Joyce tower is Westbank’s only project currently in receivership, but there has been a recent rise in receiverships and real estate insolvencies across Canada as the industry faces challenging market conditions.Last year, OPTrust bought out Westbank’s entire stake in Sen̓áḵw, the Squamish Nation’s multi-tower development in Kitsilano.Layoffs have hit other major Vancouver real estate companies recently, including Wesgroup last year.With files from Susan Lazaruk Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. 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