Creditor claims $122 million loan default on Portwood development

Undeveloped phases of Edgar Development’s Portwood Project project in Port Moody could be placed into receivership after lenders filed suit claiming the developers have defaulted on more than $122 million in debt.

Court documents filed in B.C. Supreme Court on July 23 seek the appointment of a receiver and manager over the remaining three phases of the master-planned project. A hearing is scheduled for Aug. 7.

“The applicants accordingly seek the appointment of PricewaterhouseCoopers as receiver to preserve, stabilize, and realize on the real property and related assets through an orderly, transparent, court-supervised process,” the suit stated.

More than a dozen significant B.C. development projects have entered receivership or creditor protection over the past two years, reflecting growing financial stress in the province’s real estate sector.

Many Lower Mainland projects that were financially viable in prior years have struggled to secure additional capital or achieve required pre-sale targets. Builders have struggled to keep projects afloat amid high interest rates and increasing financing costs, weak pre-sale condo demand, spiking construction costs, refinancing difficulty, and falling land values.

Two other projects in Port Moody – a 197-unit development on St. Johns Street, and a 173-unit development on Henry Street – have been forced into receivership in the last two years.

The current application was filed by three holding companies affiliated with Woodbourne Canada, who say they acquired the senior secured debt from QuadReal Real Estate Debt (Canada) earlier this year.

According to the notice of civil claim, the developers entered into a loan agreement with QuadReal in March 2022 that was amended several times and included a $110.7-million predevelopment facility. The loan was ultimately extended to an April 1, 2025 maturity date.

The plaintiffs allege the borrowers defaulted by failing to repay the loan when it matured on April 1, 2025, and that the default has continued since then. They say demand letters were issued on June 17, 2026, but the debt remains unpaid. As of May 31, 2026, the amount allegedly owing stood at $122,230,613, excluding additional interest, fees and expenses that continue to grow.

None of the allegations has been proven in court, and no response from the defendants was included in the court filings.

Two unsuccessful attempts to sell the lands

The application says the remaining development lands have already been marketed twice without a completed sale.

According to the filing, the property was first listed in 2023 through Cushman & Wakefield, generating interest and a verbal offer from a local developer, but no transaction was completed.

In 2025, after QuadReal entered into a forbearance arrangement – a contract where a lender temporarily pauses or reduces loan payments, giving a borrowing time to fix a financial issue – a second sales process was attempted.

That effort also failed after the only offer received was below the outstanding debt and unacceptable to the parties, the application alleged.

The lenders argue a court-appointed receiver is now necessary to preserve the value of the property and oversee an orderly sale.

What remains of the project

The application outlines the history of the 23-acre Woodland Park redevelopment, which was rezoned in December 2021 for a five-phase project.

Phase 1, known as The Creek, consists of 328 affordable rental homes and is being advanced separately by BC Housing. Phase 2, Umbra, a 219-unit strata project.

The first phases are not included in the lawsuit, which only applied to the remaining lands, which includes:

• Phase 3 – The Hub, approved for two five- and six-storey market rental buildings with approximately 138 rental homes and 25,000 sq. ft. of commercial space.
• Phase 4 – The Mews, planned for condominium buildings ranging from four to 15 storeys.
• Phase 5 – The Terraces, planned for condominium buildings between nine and 14 storeys.

Phase 3 consists of about 3.3 acres of vacant land with development and building permits already in place for roughly 158,000 sq. ft. of rental and commercial space, according to court documents. The phase 4 and 5 lands total about 13.6 acres and include vacant homes, former strata units slated for demolition, and 108 townhouse rental units that continue generating about $202,000 in monthly rental income.

The plaintiffs are asking the court to appoint PricewaterhouseCoopers as receiver over the remaining development lands and related assets.

According to the application, a receiver would maintain possession and control of the properties, preserve existing rental income, protect development approvals and permits, and oversee the eventual sale of the lands for the benefit of creditors and other stakeholders. 

In a parallel civil claim, the plaintiffs are also seeking judgment for the outstanding debt, continuing contractual interest, legal costs and an order declaring the loan security enforceable.