Derrick Penner, Vancouver Sun Published: Friday, February 29, 2008
Bowra is also the receiver in those cases, and said that while they faced some cost overruns, the receivership had more to do with the project financiers losing confidence in management of the development.
In his most recent report to B.C. Supreme Court, Bowra said the lenders on both buildings have agreed to finance completion of the projects, and the pre-sale buyers will be able to complete the purchases of their units at contract prices.
"Given the market conditions and the fact these people are in the money, I suspect the majority, if not all, will want to complete those transactions," he added.
However, in an interview Thursday, Bowra said about 22 units appear to have been pre-sold at prices significantly below prevailing market prices at the time, and he is seeking some direction from the court on how to handle those. He said some of the buyers were "related parties" to the developer.
Bowra was also the receiver appointed to last spring's high-profile failure of the Riverbend condominium project in Coquitlam, where the developer attempted to cancel pre-sale contracts to re-sell them at higher prices when construction costs exceeded the revenue from the contract prices.
But Bowra doesn't see a trend developing, noting that "there haven't been too many [failures]."
Peter Simpson, CEO of the Greater Vancouver Home Builders' Association, added that while the industry has strained under labour shortages and inflation of costs, the failures are still isolated cases.
"Over the last four years, there were 78,000 new homes and condominiums delivered a the price agreed upon without incident," he said.