TD Bank Secures Receivership for Burlington Waterfront Project Amid Defaults

📅 2 weeks ago

TD Bank has initiated receivership proceedings for the Burlington Waterfront condo project developed by Core Development Group, following multiple defaults on a significant loan.

In recent years, real estate insolvencies have become increasingly common, yet a recent case involving one of Canada’s largest banks stands out due to its rarity. The situation revolves around the Burlington Waterfront, a mixed-use condominium project that was being developed by the Toronto-based Core Development Group through its subsidiaries, Core FSC Lakeshore Limited Partnership and Core FSC Lakeshore GP Inc. The project site comprises a land assembly located at 2093, 2097, and 2101 Old Lakeshore Road, along with 2096 and 2100 Lakeshore Road. This prime location is situated just two blocks east of the Waterfront Hotel Burlington and mere steps away from the scenic shores of Lake Ontario. The site currently features five buildings and a parking lot; however, only one of these buildings is occupied, while the others remain uninhabited and boarded up.
According to records from the City of Burlington, the Ontario Land Tribunal granted approval for the Burlington Waterfront project in May 2022. The development aims to provide 310 residential units, complemented by commercial spaces on the ground level. Additionally, it includes plans for a five-level underground parking garage and privately-owned public space positioned along the western edge of the property.
The financial troubles surrounding this project came to light when Toronto-Dominion Bank (TD Bank) filed for receivership on April 29, stemming from a first-ranking land loan agreement made in February 2023, amounting to $18 million. This loan was structured to be repayable on demand, allowing TD Bank the right to accelerate payment obligations in the event of a default or if development financing was not approved by February 28, 2026. Core Development Group guaranteed the loan, along with Forgestone Capital through its Forgestone Capital Fund No. 2 LP, FSC Old Lake GP Inc., and FSC Old Lake Limited Partnership. Specifically, Core Development was responsible for guaranteeing 25% of the total outstanding liabilities, while Forgestone accounted for 75%.
As the deadline for development financing approached, discussions about the obligations and potential sale of the property began among the involved parties in December 2025. These negotiations extended into February, at which point TD Bank uncovered a second mortgage registered against the property by Forum Subterra General Partner Inc. for $249,390. Forum Subterra, known for developing and operating geothermal heating and cooling systems, had a partnership with Forum Asset Management since 2019, which included a recent acquisition of Subterra by Forum earlier this year.
TD Bank asserted that the registration of this second mortgage, conducted without their approval, constituted a default. Additionally, Core Development failed to make a scheduled interest payment of $67,924.23 on February 9, further compounding the situation. Consequently, TD issued a formal demand for payment on March 4, claiming a total of $18,240,367.62 owed as of April 28, with interest continuing to accumulate.
In an affidavit dated April 28, Dave Gemin, a Director of TD Bank’s National Real Estate Group, stated, "In the circumstances set out above, I believe that it is just and equitable that a receiver be appointed by the Court." He emphasized the necessity of a receiver for the protection and realization of the real property and the interests of TD Bank and all stakeholders involved. Gemin also noted that appointing a receiver would likely enhance the prospects of recovery for TD Bank while safeguarding the interests of all parties.
The Ontario Superior Court of Justice granted TD’s receivership application on May 19, with the presiding judge highlighting that Forgestone was in support of the receivership process. As a result, the property will now undergo a court-ordered sales process, marking a significant turn in the fate of the Burlington Waterfront project.

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