Manderley Condo Project in Toronto Faces Receivership After Financial Troubles

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The Manderley, a mixed-use condo development in Toronto, has entered receivership despite substantial completion, following financial difficulties faced by developer Nova Ridge Development Partners Inc.

The Manderley, a mixed-use development project located at 1478-1496 Kingston Road in Toronto's Birch Cliff neighbourhood, has been placed under receivership, as per recent filings in the Ontario Superior Court. This case is notable not only because of the financial struggles facing the developer, Nova Ridge Development Partners Inc., but also because construction on the project is reported to be substantially completed. The Manderley features 11 stories, encompassing 194 condominium units and two retail spaces on the ground level. The project has been marketed as a ‘boutique’ condo initiative, blending the vibrancy of urban life with the serene proximity of Lake Ontario, which lies about one kilometre away. According to legal documents, the construction was substantially completed on April 28, 2026, with a certificate of substantial completion issued on May 5, 2026.
Nova Ridge holds ownership of the Manderley through its subsidiaries, Nova Ridge (Manderley) Limited Partnership and Nova Ridge (Manderley) GP Corp. To finance the project, Nova Ridge obtained a non-revolving term construction loan amounting to up to $79,916,000, along with a non-revolving letter of credit facility of up to $2,500,000 from United Overseas Bank (UOB), which is headquartered in Singapore and has branches across Canadian cities like Toronto, Calgary, and Vancouver. Additionally, UOB provided a mezzanine loan of up to $9,050,000. However, both loans matured on January 31, 2026, and February 28, 2026, respectively, without repayment from Nova Ridge.
After entering into a forbearance agreement on February 1 to delay enforcement of the loans, Nova Ridge failed to meet the interest payment obligations stipulated in the agreement. Consequently, formal payment demands were issued by the lenders on April 21. As of June 8, the total outstanding debt attributed to the project amounted to $30,036,947.9, comprising $21,123,337.16 owed under the construction loan and $8,913,610.72 under the mezzanine loan, with interest continuing to accumulate.
UOB's receivership application highlighted that Nova Ridge had increasingly ceased payments to contractors and suppliers, leading to various liens being registered against the property due to unpaid trades, thereby breaching the Loan Agreements and the Debenture. Moreover, it was revealed that Nova Ridge had inappropriately deposited $3.6 million in project funds into accounts at TD Bank, contrary to the requirement that all project funds be held in a UOB account. A payment of approximately $32,000 was made from the TD account to a subcontractor to finalize the sale of one of the retail units, executed without UOB's knowledge. The remaining funds have since been transferred back to the UOB account.
Looking forward, the court-appointed Receiver has noted that while both retail units have been sold, there are still 70 unsold condos, 34 parking spots, 28 lockers, and 23 combined parking spots and lockers remaining. Among these, 47 condos have buyers who failed to close. The remaining inventory will undergo a sales process as mandated by the court, overseen by Milbourne Group, the sales agent previously engaged by Nova Ridge. A sales plan has been crafted by the Receiver, lenders, and Milbourne, specifying target prices for the units. If sold within these parameters, transactions will not necessitate further approval from the lender or the court. The plan also includes provisions for bulk sales, where selling five or more units for an aggregate price exceeding $2 million will require court approval.
Efficient completion of these sales is crucial, as it will facilitate the resolution of the liens registered against the property. Currently, there are 11 liens totaling $11,357,528. The Receiver estimates that the sales process will take approximately eight to ten months to finalize.

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